The divisional organizational management structure is used in companies that have a variety of business lines and operations. It is especially useful for multi-industry enterprises, where each section focuses on a specific area of activity. This model is also widely used in companies with separate branches in different regions, which allows for effective coordination and management of different locations.
Large companies, especially those operating in different countries, often choose a divisional management structure. This has many advantages. It allows decisions to be made immediately, which reduces the time it takes to implement measures.
Branch managers are well aware of local conditions and requirements, so they are able to choose the right actions for their specific situations. It is important that they are independent and responsible for the results of their work. This motivates them to effectively solve all the difficulties they encounter.
Who is the divisional management structure suitable for?
When a company has teacher database problems with growth and diversification of production, a divisional management structure can be used. Managers strive to eliminate deficiencies in functional options. They select a specific production division within the company that specializes in creating products for specific market segments and customers. This division consists of several smaller ones, which makes them easier to administer. Management provides financial and legal support to these departments, and coordinates and controls their activities.
Each branch has its own functional groups and specific structure in accordance with its characteristics.
A divisional management structure can be useful in the following situations:
when a company becomes large and needs more effective management;
if the company produces a wide range of products or services;
in organizations that have several departments or divisions with different functions or segments;
when a company wants to maintain flexibility and quick decision-making locally, closer to customers or markets;
when an enterprise seeks to expand its activities beyond the national market and enter the international one.