A Divisional Organizational Structure tends to duplicate services for all its service areas and is less efficient.
A Divisional Organizational Structure tends to duplicate services for all its service areas and is less efficient.
This statement is True.
In a Divisional Organizational Structure, separate divisions or units are created for each service area, such as marketing, finance, and operations. Each division has its own set of resources and functions independently.
However, this can lead to duplication of efforts and resources because each division may have its own departments and staff to handle similar tasks. For example, if a company has multiple divisions, each division may have its own HR department, resulting in duplicative HR functions.
This duplication can make the organizational structure less efficient and lead to increased costs and coordination challenges.