Which of the following is a disadvantage of divisional structures?

A) There is reduced flexibility in adding, removing, or changing operations to meet changing demands.
B) They increase costs through the duplication of resources and efforts across divisions.
C) They reduce the level of coordination across functional departments.
D) They make it impossible to focus on specific customers, products, and regions.
E) They require the deletion of divisions in an organization.

Question

Vanessa Parker · Accepted Answer

Final Answer : B, Explanation :  Divisional structures often lead to duplication of resources and efforts across different divisions, which results in increased costs. This is because each division may have its own staff, equipment, and resources that could be used more efficiently if centralized. Additionally, the separation of divisions may create competition and conflicts that reduce the level of cooperation and coordination across functional departments. While there may be reduced flexibility in adding, removing, or changing operations, it is not necessarily a disadvantage if the divisional structure is designed to allow for some autonomy and specialization. The other options, such as making it impossible to focus on specific customers or requiring the deletion of divisions, are not necessarily disadvantages and may depend on the specific goals and needs of the organization.

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