What Is A Divisional Structure?

In divisional structure, the organization is organized into various divisions based on basically three criteria product, market of geographical structures. In product structures, the organization is grouped in such a way that that the employees who are involved in making a specific product are grouped together into one division. A product divisional structure will divide the company into product A, B, C etc and each division will have its own hierarchy. Then there is the market divisional structure in which the organization is organized according to the various markets that it operates in for example business/corporate sales division, consumer sales division etc. Finally we have the geographic division structure in which the organizations is grouped in such a way that employees located in one geographic locations are grouped together to make one division. For example the company may have a headquarter and then a European division, south Asian division etc.

Divisional Organizational Structure is basically a kind of organizational structure that is characterized by divisions inside an organization. These divisions are based on the working of an organization.

Actually divisions are made to facilitate large sized organizations that are either manufacturing more than one products or are operating in more than one market or in more than one geographic area. In order to manage the working of a large sized organization, different divisions are made. These divisions work independently on their jobs, taking strategic directives from the top management.

A company can divide its operations into different divisions working for distinct products. It can also cater to different markets like business and consumer markets. And it can also have divisions catering to different geographic places. Thus a divisional structure can have a product orientation or a market orientation or a geographic orientation.

In divisional structure the organization organized into various base on the 3 criteria

Means an organization is divided according to divisions for different departments or structures

Divisional organization  of McDonald

A divisional structure develops when__