Distinctive features of the divisional management structure
Posted: Sun Jan 19, 2025 9:43 am
A divisional management structure is a way of organizing a company in which there is a clear distinction between responsibility for managing specific products or services and responsibility for performing specific functions. Top managers are the key figures in formulating and implementing strategies and plans at the level of production units, ensuring their effective functioning and achievement of set goals.
Such structures emerge due to the growth of enterprises, the diversity of their activities and the complexity of technological processes in a changing environment.
Adding a new level of hierarchy creates more intermediate managers between the CEO and the company's operational units. This can complicate the strategic decision-making process, as information must pass through additional layers of management before reaching the top of the organization.
Distinctive features of the divisional management structure
In a divisional management structure, senior management makes decisions and formulates plans for the company's development strategy, scientific research, finance and teacher database investment. It also delegates authority and responsibility to the top managers of each division for operational actions within their area of activity. This allows achieving a balance between centralization of control and management of strategic aspects, and decentralization of current decisions at the local level.
A. Sloan, president of General Motors, explained that divisional structure means that the management of the company is divided into separate groups or divisions. Each cell has its own independence and independently makes decisions for its area.
At the same time, these units are still linked to the central management, but have greater freedom in operational activities. Important figures in such a structure are the heads of these groups, who are responsible for production or other specific areas of work. These units are called divisions.
Increase Your Profits by 10X: 5 Key Metrics You Must Track
Alexander Kuleshov
Alexander Kuleshov
General Director of Sales Generator LLC
Read more posts on my personal blog:
After working with over 300 online projects , I can guarantee: monitor these metrics weekly and your company will not only survive, but also increase its profits by 10 times!
In the context of sanctions and crisis, knowing the ROI of your advertising decides whether your business will be successful. Tracking these 5 critical indicators is the key to your prosperity.
What you get for free:
5 Key Metrics to Increase Profits by 220%
The Secret ROI Formula: Instant Advertising Efficiency Calculator
Anti-crisis Solutions Matrix: Find the Perfect Strategy for Your Business in 15 Minutes
We have prepared all the documents and templates with formulas for you. And yes, it is FREE:
Download documents for
Such structures emerge due to the growth of enterprises, the diversity of their activities and the complexity of technological processes in a changing environment.
Adding a new level of hierarchy creates more intermediate managers between the CEO and the company's operational units. This can complicate the strategic decision-making process, as information must pass through additional layers of management before reaching the top of the organization.
Distinctive features of the divisional management structure
In a divisional management structure, senior management makes decisions and formulates plans for the company's development strategy, scientific research, finance and teacher database investment. It also delegates authority and responsibility to the top managers of each division for operational actions within their area of activity. This allows achieving a balance between centralization of control and management of strategic aspects, and decentralization of current decisions at the local level.
A. Sloan, president of General Motors, explained that divisional structure means that the management of the company is divided into separate groups or divisions. Each cell has its own independence and independently makes decisions for its area.
At the same time, these units are still linked to the central management, but have greater freedom in operational activities. Important figures in such a structure are the heads of these groups, who are responsible for production or other specific areas of work. These units are called divisions.
Increase Your Profits by 10X: 5 Key Metrics You Must Track
Alexander Kuleshov
Alexander Kuleshov
General Director of Sales Generator LLC
Read more posts on my personal blog:
After working with over 300 online projects , I can guarantee: monitor these metrics weekly and your company will not only survive, but also increase its profits by 10 times!
In the context of sanctions and crisis, knowing the ROI of your advertising decides whether your business will be successful. Tracking these 5 critical indicators is the key to your prosperity.
What you get for free:
5 Key Metrics to Increase Profits by 220%
The Secret ROI Formula: Instant Advertising Efficiency Calculator
Anti-crisis Solutions Matrix: Find the Perfect Strategy for Your Business in 15 Minutes
We have prepared all the documents and templates with formulas for you. And yes, it is FREE:
Download documents for