The divisional management structure is based on a clear division of functions within the company. The transition to this type of management is prompted by the increased demand for products, leading to the expansion of the business itself and the complication of its processes.
But such a structure has both its advantages and a number of disadvantages.
Advantages of a divisional management structure
It is especially effective for large companies with several divisions and hundreds of thousands of employees. This system allows you to coordinate the work of various branches, direct staff to achieve the set goals.
Flexibility helps a company to operate successfully in a volatile and unstable environment, adapting to changes and quickly adapting to new conditions.
The company provides a jordan email list transparent and accessible system of communication with customers. Customers can contact different departments to get help and solve their problems. Such accessibility ensures the growth of trust.
The divisional structure reduces the workload of top management, since each division has its own management. Such a system enables the company's management to focus on strategic tasks related to development and progress as a whole.
Divisional performance is easily monitored because each division must achieve predetermined goals, usually expressed in financial terms. If a division is not meeting its planned targets, senior management can easily identify who needs additional monitoring or support.
Production in the divisional structure is focused on specific products, which helps improve quality. Each division specializes in the production of its own product, which allows focusing on its consumer properties.
Advantages of a divisional management structure
Disadvantages of divisional organizational management structure
Problems with the implementation of this model.
Significant costs for maintaining individual divisions.
Potential risk of resource shortages.
Competition and inconsistency between different divisions of the company.
Failure to comply with corporate ethics and independent decision-making by department heads.
Managers are overloaded with a large amount of responsibility.
Inconsistency and lack of coordination between management structures.
Alienation of senior management from employees at lower levels of the hierarchy.
The divisional organizational management structure is an effective solution for large enterprises. To ensure the successful functioning of the system, it is necessary to train division managers with the participation of the chief executive. However, due to the remoteness of the divisions, some shortcomings are difficult to correct.
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