Question

One of the disadvantages of divisional structure design is that they divide _________, ____________, and knowledge. They insulate divisional managers from other divisional managers thus inhibiting their ability to coordinate activities, share resources, and learn from each other.

A) land, buildings
B) assets, structures
C) people, resources
D) people, buildings

Answer 1

C) people, resources

Step-by-step explanation:

A division structure splits the organization into several semi-autonomous units called divisions. Divisions are created around business activities such as their products, services, markets, or geographical locations. Each division manages its day to day operations but reports to a central authority.

In the division structure, employees are attached to a division based on their suitability. The division structure is suitable for large organizations with multiple products and multinationals. The structure is expensive to operate and has the possibility of role duplication. The divisions control their resources, and the employees hardly meet.