Which of the following is not a disadvantage of a divisional type of organizational structure?

A. It can be very expensive compared to a functional organizational structure.

B. There is a strong tendency for divisions to focus on short-term performance.

C. There is separation of strategic and operating control.

D. There can be dysfunctional competition among divisions.

Answer: Option (c) is correct.

Explanation:

Option (c) is not a disadvantage of a divisional type of organizational structure. All the other options are the disadvantages of a divisional organizational structure.

The divisional structure has drawbacks, including conceivably scattering specialized ability and skill or fostering unfortunate competitions among divisions. The divisional structure likewise may build costs by requiring useful pros and better qualified administrators for every division. Additionally, on the grounds that there is an overemphasis on divisional as opposed to organizational objectives, the divisional structure may bring about copying assets and endeavors -, for example, staff administrations, offices and work force - crosswise over divisions.

Answer: option c

Explanation: Divisional organisation structure can be defined as the structure under which the business of an organization is divided according to the products, market or geography etc.

a. In functional structure the business is divided into sub parts as per the

activities therefore divisional structure would be more expensive as one has to hire more specialists of different activities.

b. Different divisions might focus on short term objectives for showing better performance at the end of the period as every division will have same goal.

c. In divisional structure every division have separate managerial base thus there would be no separation of strategic and operating control.

d. same goals of different divisions will eventually lead to unethical competition among divisions for having funds.

Hence, option c is correct.