Why it is to fix responsibility in divisonal structure

Dear Student,

 

In a divisional structure, the organisation comprises of separate business units or divisions and each division is multifunctional. 

Under divisional structure, each division/unit has a divisional manager who is responsible for the performance of the unit and all activities pertaining to a particular product are grouped in one division. This allows the organisation to track the profitability and production performance and standards of each product separately and hence, it is easy to fix responsibility under this divisional structure.