Practicing Success
Which of the following case is suitable to divisional structure? |
In case of large organizations In case of plan to add more products In case of diversified activities In case a task requires high degree of specialization |
In case of plan to add more products |
The correct answer is option 2- In case of plan to add more products. Divisional structure is suitable for those business enterprises where a large variety of products are manufactured using different productive resources. When an organisation grows and needs to add more employees, create more departments and introduce new levels of management, it will decide to adopt a divisional structure. |