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Answer -
Divisional structure is a system where work is divided into different departments. There is a separate head for each department and there is no overlapping of responsibilities in such a structure. The field of work is clearly defined.
Here are some of the advantages of a divisional structure
1. Managers and workers get ample opportunity to grow among their department and become specialist in the product. It is helpful in increasing efficiency of the workforce.
2. Each division or department can be tracked individually for their performance. It leads to identification of best and worst performing divisions.
3. The divisions are independent to take their own decisions which makes the decision-making process quick. The rapid decision making enables faster implementation which is beneficial for the organisation.
4. Having a divisional structure allows adding more divisions without impacting the functions of the organisation
The disadvantages can be highlighted as:
1. There can be conflicts among departments with regards to allocation of funds and resources.
2. There can be rise in cost due to duplication of work among departments. There might be some activities that are common across all departments and employing separate personnel for each department for these activities can drive the cost higher.
3. There can be a chance that due to more focus on improving the individual departments the growth of organisation as a whole can get hampered.