Divisionalized Organizational Structure

A divisionalized organization is one in which leadership partitions strategic functions into departments and divisions. The company distributes all the organizational work between the divisions. These divisions accomplish their share of the work and work towards achieving organizational objectives.

Features

In a divisionalized organization, divided departments include production, marketing, finance, IT, accounts and sales. A manager supervises and administers all the employees in his division. These department managers report to top management.

Significance

By segregating work and responsibility, the company can evaluate the role and importance of each division in the organizational schema of affairs. Leadership can clearly understand the strengths and weaknesses of each department. The company can take corrective actions and measures accordingly.

Benefits

Using this structure, the organization can clearly define its authority and responsibility frameworks. Employees know who reports to them and to whom they must report. This structure accentuates communication and workflows. Each division works distinctly and on its own; at the end, all the work combines for a completed initiative.

References

• OrganizationalStructure.net: Types and Design Strategy
• Lamar University: Topic 14 - Organizational Structure