under this structure, different divisions are assigned to marketing, sales or even accounting. Divisional structure Also called a "product structure", the divisional structure groups each organizational function into a division. Features of an organization are based on factors including size, geography, function, product and values. A functional structure c. A divisional structure d. A team-based structure e. A virtual network structure. General Electric is an excellent example of how this style can work. This type of organizational structure is entirely based on each person’s job duties and responsibilities. Culture. E.g. As will be explained, the functional structure evolved first, followed by the divisional structure and then the matrix structured. The divisional structure works well in markets where there is a great deal of competition, where local managers can quickly shift the direction of their businesses to respond to changes in local conditions. Examples of common organizational structures include traditional hierarchy, departmental, divisional, flat and matrix. The geographic structure features characteristics of the functional structure, as each geographic division typically will arrange its people and resources in functional teams. There are many types of organizational structures. One of key features of this structure is decentralisation of powers and responsibilities. 2) Functional Structure. Whereas those organizations that have a diversified product line is likely to have a decentralized divisional structure. A divisional structure is a common organizational form used in business. New structures are emerging, including halocratic and flatarchy. Product-Based Structure With product-based structure, the organization is structured around particular product lines. Divisions are relatively independent and autonomous and in some cases may even have legal personality (profit centres or cost centres). Instead of focusing on specialties, this structure groups individuals based on the products or projects they are undertaking. Divisions can be categorized from different points of … In this lesson, you'll learn about divisional structures, including their advantages and disadvantages. A structure is then developed to establish how the organization operates to execute its goals. Each division has its own set of functional units like research, manufacturing, marketing etc … a. Divisional structure design. You can use this structure to create a culture at the divisional level that most closely meets the needs of the local market. The second era started in the 1980s and extended through the mid-1990s. In a divisional structure, the teams are organized in set of divisions, where each division corresponds to the end product or services provided by the organization. There’s the more traditional functional structure, the divisional structure, the matrix structure and the flatarchy structure. 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