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Question

Which of the following is not a demerit of divisional structure?


A

Conflict may arise among different divisional heads due to different interests.

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B

All functions related to a particular product are integrated into one department.

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C

Authority provided to the managers to supervise all activities related to a particular division may lead to undesirable consequences.

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D

It is an expensive structure to maintain, since there may be a duplication of activities across products.

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Solution

The correct option is B

All functions related to a particular product are integrated into one department.


Answer (b) All functions related to a particular product are integrated into one department.

Explanation: The divisional structure is a sort of hierarchical construction that bunches each authoritative capacity into a division. Each division holds all the essential assets and capacities inside it to help a product line or geography (for instance, its own Information Technology department, Finance department, and Marketing department).


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