Question : Which of the following is not a merit of divisional structure?
Option 1: Leads to product specialisation
Option 2: Provides greater accountability
Option 3: Helps in expansion and growth
Option 4: Departmental conflicts
Correct Answer: Departmental conflicts
Solution :
The divisional structure offers many benefits. Prominent among these are as follows:
1. Product specialisation
2. Divisional heads are accountable
3. It promotes flexibility and initiative
4. It facilitates expansion and growth
Departmental conflicts is not covered in the above list.
Hence option D is the correct answer.