What is Divisionalised Structure

The quests for sound organizational management and efficient corporate governance have received more impetus in today's business environment. This is because it has been observed especially among large scale enterprises and multinational companies of incidences of wastage of human and material resources, inefficiency and sluggishness in the corporate decision making process at huge cost to the company on one hand and to shareholders on the other. In contemporary corporate setting especially in situations where huge sums are budgeted for information and communication technologies, large scale organisations tend to have more specialisation, departmentalisation, centralization, and regulation than small scale enterprises. Particularly, companies with wide variety of products often give preference to divisionalisation purposely to ensure efficiency and effectiveness in the corporate decision-making process.