What Are the Disadvantages of a Divisional Structure

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The Answer is Although divisional structures offer large, complex organizations a number of coordination and motivational advantages over functional structures, they have certain disadvantages as well. The disadvantages can be overcome with good management, but some of them are simply the result of the way a divisional structure works.
First, because each division has its own set of functions, the costs of operating and managing an organization increases. Second, communication may suffer when a divisional structure is implemented. Communication can become more complex as various managers at various levels in various divisions attempt to exchange information with one another and coordinate their activities. Third, divisions may start to compete for organizational resources and pursue their own goals at the expense of organizational goals. These conflicts reduce cooperation and can sometimes result in friction between divisions.

What Are the Disadvantages of a Divisional Structure

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