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Which of the following is not an advantage of Divisional Structure?

(a)   Each unit or division can respond or react quickly, when required, because they normally do not need to coordinate with other divisions before taking an action (b)   Coordination is simplified as each division is similar to an organization, containing the various functions within it (c)   Individuals are able to develop in-depth areas of specialization to the same extent as in a functional structure(d)   It helps the organization to focus on serving a particular customer (e)   It helps to fix responsibility and accountability for performance.

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Question added by Vinod Jetley , Assistant General Manager , State Bank of India
Date Posted: 2015/05/14
Georges Aref Chaoul
by Georges Aref Chaoul , Business Unit Director - Consumer Services , Kaizen Asset Management Services

(C)                   Thank You.

Vinod Jetley
by Vinod Jetley , Assistant General Manager , State Bank of India

(c)

Divisional Structure is a type of departmentation in which positions are grouped according to similarity of products, services or markets. Individuals are unable to develop in-depth areas of specialization to the same extent as in a functional structure. Hence, option (c) is not an advantage of divisional structure. Options (a), (b), (d) and (e) all are advantages of the divisional structure.

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