What is a Divisional Structure?




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What is a Divisional Structure?

The divisional organization structure can be seen as one type of functional structure, or as a seperate organizational strucure.
It is often broken down into three types of divisional structures:
1. Product divisional structure,
2. Market divisional structure, and
3. Geographic divisional structure.
 

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2
Jaap de Jonge
Editor, Netherlands
 

Multiunit Enterprise

You'll find an indepth article by David A. Garvin and Lynne C. Levesque describing the geographic divisional structure in HBR June 2008, p105-117). Actually the authors call this type "The Multiunit Enterprise" and position it versus the multidivisional enterprise.
Examples of Multiunit Enterprises mentioned in the article include Citigroup, Hertz, Home Depot, Marriot International, UPS, Wal-Mart.
Typical for the multiunit enterprise is:
- it resembles a Russian nesting doll, in that the P&Ls of one level are incorporated in those of the level immediately above.
- also they are characterized by their four levels of field managers: Store Managers, District managers, Regional Vice Presidents and Division Presidents (or SVPs).

 
0
Mariano Talanchuk
HR Consultant, Argentina
 

Structural Configurations

According to Mintzberg, what you describe is a similar to bureaucratic (functional) organization. ... Sign up

 
1
Jaap de Jonge
Editor, Netherlands
 

The Multidivisional Structure or Functional Structure and Innovation

A conventional approach for companies that are growing bigger and bigger is to move from a functiona... Sign up

   

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