Divisional management structure By the end of the 20s of the last century. The need for new approaches to the organization of management. Became clear associated with a sharp increase in the size of enterprises. The diversification of their activities (diversification), the complication of. Technological processes in a dynamically changing environment.
Hierarchical type of control structures
In this regard, divisional management structures began to emerge, primarily in large corporations, which began to provide some independence to their production units, leaving the development strategy, research and development, financial DJ Email List and investment policy, etc. to the management of the corporation. Coordination and control of activities with decentralized management.
The peak of the introduction of divisional management structures occurred in the 60s and 70s of the last century, Marketing notes. Divisional management structure The key figures in the management of organizations with a divisional structure are no longer the heads of functional departments, but managers who head production departments (divisions). By manufactured products (products or services) – product specialization.