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Divisional structures sometimes create intentional or unintentional competition for resources among the divisions

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Final answer:

Divisional structures in business can lead to competition for resources among divisions.

Step-by-step explanation:

In business, divisional structures can create intentional or unintentional competition for resources among the divisions.

This can happen when each division is given its own budget and is responsible for generating its own profits. In an effort to maximize their own success, divisions may compete with each other for limited resources such as funding, personnel, or even customers.

For example, if one division uses more resources than its fair share, it may leave less resources available for the other divisions, potentially causing conflict and hindered cooperation.

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