Each organizational structure comes with different advantages and disadvantages and may only work for companies or organizations in certain situations or at certain points in their life cycles. Group action may lead to compromise and indecision. The structures may promote allegiance to department rather than organization objectives. If you want to learn more about organizational structure types in Project Management you should check out our 100% Online and Self-Paced Project Management Professional Certification Training . In this article, we are going to review the advantages and disadvantages of each organizational structure: Functional, Projectized, and Matrix. Divisional Structure Divisional structure is usually followed by big companies which manufacture more than one products or having operations in wide geographical area. Advantages and Disadvantages of Functional Organizational Structure In this type of organization, the emphasis is on managing some functions wherever the function may be performed in the enterprise. Disadvantages: 1. They are: (i) Function, All of the following are disadvantages of a divisional type of organizational structure except A) it can be very expensive compared to a functional organizational structure. 2. Disadvantages of the divisional approach are: - 1. Divisional Organisational Structure: In this type of structure, the organisation can have different basis on which departments are formed. More advantages and disadvantages of divisional structures, as well as its contingencies, are cited below. This can improve the management’s decision-making process. The divisional structure can be useful because it affords the company greater operational flexibility. There’s the more traditional functional structure, the divisional structure, the matrix structure and the flatarchy structure. Advantages, Disadvantages, and Contingencies of Divisional Structures Advantages B) there is a strong tendency for divisions to focus on short-term performance. They may also place multiple demands on people, thereby creating stress. ‘Buck passing’ may result. B) There is a strong tendency for divisions to focus on short-term performance. Advantages & disadvantages of divisional organizational structure Chris Joseph - Updated February 06, 2018 Large companies that serve a varied customer base or operate in a number of geographic regions may choose to operate with a divisional structure. In divisional structure, the functions for each division are not centralized and they are capable of doing their own tasks. A) It can be very expensive compared to a functional organizational structure. Therefore, one of the disadvantages of the divisional structure is the high demand for the qualified managerial personnel (Henry, 2007). C) there can be … Divisional Structure 2. It should also be noted that a number of experts, studying different types of organizational structures, tend to treat the divisional structure as a kind of traditional bureaucratic structures (Henry, 2007). C) There can … As with all organizational structure types, the divisional structure offers distinct advantages and disadvantages. Show More. 44. Related. Generally speaking, divisions work best for companies with wide variance in product offerings or regions of geographic operation. 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