Divisional Structure:
Advantages of divisional structure:
(i) Product specialization helps in the development of varied skills.
(ii) It helps in the fixation of responsibility as divisional heads who are accountable for profits, revenues and costs related to their departments.
(iii) It promotes flexibility, initiative and faster decision making as each division is an autonomous unit.
(iv) It facilitates expansion and growth as new divisions can be added without interrupting the existing operations.
(v) It reduces the problem of co-ordination between departments as all activities concerning a particular product line are integrated together.
