Operational problems (“churn”) dominates over strategic ones; a tendency to red tape and shifting responsibility when solving problems that require the participation of several departments; low flexibility and adaptability to changing situations; criteria for the efficiency and quality of work of departments and the organization as a whole are different.
Advantages of a divisional structure:
The tendency to formalize the assessment of the effectiveness and quality of the work of departments usually leads to the emergence of an atmosphere of fear and disunity; a large number of “management floors” between workers producing products Direct Mail Marketing For Personal Injury and the decision maker; overload of top-level managers; increased dependence of the results of the organization on qualifications, Conclusion:
Divisional management structure
In modern conditions, the disadvantages of the structure outweigh its advantages. Such a structure is poorly compatible with the modern philosophy of quality. Linear – headquarters structure This type of organizational structure is the development of a linear one and is designed to eliminate its most important drawback associated with the lack of strategic planning links.