Examples of division in the following topics:
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- Divisional structures group various organizational functions into product or regional divisions.
- A divisional organization groups each organizational function into a division.
- If the division builds luxury sedans or SUVs, for example, the SUV division will have its own sales, engineering, and marketing departments distinct from those departments within the luxury sedan division.
- In addition, the failure of one division does not directly threaten the other divisions.
- Some disadvantages of this structure include operational inefficiencies from separating specialized functions—for example, finance personnel in one division do not communicate with those in another division.
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- A functional structure focuses on developing highly efficient and specific divisions which perform specialized tasks.
- The downside of this structure is that each division is generally autonomous, with limited communication across business functions.
- As a result, different divisions will handle different products or geographic locations/markets.
- For example, Disney may have a division for TV shows, a division for movies, a division for theme parks, and a division for merchandise.
- This structure combines functional and divisional concepts to create a product-specific and division-specific organization.
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- The four common elements of an organization include common purpose, coordinated effort, division of labor, and hierarchy of authority.
- Division of labor is also known as work specification for greater efficiency.
- Using division of labor, an organization can parcel out a complex work effort for specialists to perform.
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- An organization chart (sometimes called an organizational chart, an org chart, or an organogram) is a diagram that illustrates the structure of an organization, the relationships and relative ranks of its business units/divisions, and the positions or roles assigned to each unit/division.
- This means that each function—e.g., research, production, sales, and finance—has separate internal divisions for each product.
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- Personal biases can be divisive forces within a decision processes as they often lead to less than ideal outcomes for decision makers.
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- A large company with divisions around the world can form teams that bring together people with the necessary background and skills to achieve its goals.
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- ., research, production, sales, and finance—has separate internal divisions for each product.
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- Employees within the functional divisions of an organization tend to perform a specialized set of tasks, such as engineering.
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- The concept of factory production amplified production as a whole and allowed for the organized division of labor to start.
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