Question

Which of the following are a few prominent advantages of a divisional structure?

विकल्प

• Managerial Efficiency

• Gauging Performance

• Flexibility and Initiative

• All of the above

Answer 1

All of the above

Explanation - 

A divisional structure has a number of significant advantages.

1. Managerial Efficiency : The divisional structure helps managers and employees grow by presenting them with multiple chances. Along with product specialisation, it also leads to the development of working personnel's skills and knowledge. As he works with a wide range of responsibilities for which he is responsible, the divisional head gets experience. This allows him to develop and improve his working skills.
2. Gauging Performance : Each divisional leader is responsible for the profit and loss of his own division under the divisional system. This aids in the distinct identification of each department's performance. It becomes easy to assess each department's actions once the head is held accountable for its revenues and costs. This also aids in the implementation of corrective steps in the event of unsatisfactory performance.
3. Flexibility and Initiative : Because each division operates independently under the divisional system, decision-making is expedited. The leaders of the departments have the authority to make their own decisions once the departments have been divided. This encourages employees to take initiative because they can now make decisions at the appropriate time and location.