What Is Divisional Organizational Structure?

Divisional Organizational Structure is basically a kind of organizational structure that is characterized by divisions inside an organization. These divisions are based on the working of an organization.

Actually divisions are made to facilitate large sized organizations that are either manufacturing more than one products or are operating in more than one market or in more than one geographic area. In order to manage the working of a large sized organization, different divisions are made. These divisions work independently on their jobs, taking strategic directives from the top management.

A company can divide its operations into different divisions working for distinct products. It can also cater to different markets like business and consumer markets. And it can also have divisions catering to different geographic places. Thus a divisional structure can have a product orientation or a market orientation or a geographic orientation.