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What is a Divisional Structure?

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Organization Chart
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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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More on Organization Chart:
Summary
Discussion Topics
topic Should Structure Follow Strategy?
topic Org Chart of a Virtual Organization
topic Levels in Organisations and Role Clarity
👀What is a Divisional Structure?
topic When is an Organization Design Good? 7 Indicators of an Effective Organization
topic The First Organization Chart
topic Your Employees' Work is Changing: From a Job to Several Roles
topic Higher End Uses of Org Charts
topic Organizational Charts Say a Lot About the Organization at a Glance
topic How do You Keep Organizational Charts Current?
topic Special Organizational Structure for Construction Industry?
topic When is an Organization Chart Out of Date?
topic Channels of Communication Within an Organisation?
topic Bypassing your Boss / Position in the Line of Authority
topic Organization Chart Software
topic The Future Proof Organization
topic Organisation Chart and Communication
topic Reorganizing a Radiology Department
topic Utility of Organizational Charts
topic What are Line Relationships?
topic Importance of Organisational Structure
topic Information Flow and Hierarchy Structure
topic Organization Chart for Export / Import Business
topic Organization Design as an HR Offering
🔥 Top Level Organization of the Ministry of Education (Education Department)
topic Where are Projects in Organization Chart?
topic Organization Chart for a Manufacturing Company
topic The Fluid Organogram
Special Interest Group

SIG Leader

Do you know a lot about Organization Chart? Become our SIG Leader

Knowledge Center

Organization Chart
Knowledge Center



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