Identify the organisational structure that leads to product specialisation.

Divisional

The correct answer is option (3)- Divisional.

Divisional structure that leads to product specialisation.

Divisional structure groups activities on the basis of products. The advantages are integration, product specialisation, greater accountability, flexibility, better coordination and more initiative. The disadvantages are departmental conflicts, costly process, ignoring of organizational interests, increase in requirements of general managers. The divisional head gains experience in all functions related to a particular product. Product specialisation helps in the development of varied skills and prepares the employee for a higher position.