divisionism

Examples of divisionism in the following topics:

• Divisional Structure

  • Divisional structures group various organizational functions into product or regional divisions.
  • A divisional organization groups each organizational function into a division.
  • Product and geographic divisional structures may be characterized as follows:
  • A common legal structure known as the multidivisional form (or "M-form") also uses the divisional structure.
  • The divisional structure can be useful because it affords the company greater operational flexibility.

• Overview of Organizational Structure

  • Also called a "product structure," the divisional structure groups each organizational function into a division.
  • Each division within a divisional structure contains all the necessary resources and functions within it.
  • In another example, an automobile company with a divisional structure might have one division for SUVs, another division for subcompact cars, and another for sedans.
  • Some common structures are the functional, divisional, matrix, team, network, and modular structures.

• Considering Company Size

  • A divisional structure is also a framework best leveraged by larger companies; instead of economies of scale, however, they are in pursuit of economies of scope.
  • This structure combines functional and divisional concepts to create a product-specific and division-specific organization.
  • Larger companies, on the other hand, achieve higher efficiency through functional, bureaucratic, divisional, and matrix structures (depending on the scale, scope, and complexity of operations).
  • This structure is divisional, meaning each specific company operation is segmented (for example, operations, finance/accounting, marketing, etc.).

• Characteristics of Organizational Structures

  • Types of organizational structures include functional, divisional, matrix, team, network, and horizontal structures.

• Considering the Organizational Life Cycle

  • This is where functional or divisional strategies may begin to emerge, enabling managers to build teams and delegate tasks.
  • In this stage they grow large enough to accommodate functional, divisional, or even matrix structures in order to produce at scale.
  • This requires a great deal of organized creativity and exploration of new markets, which may justify team or divisional structures within the broader organizational structure.

• Benefits of Organization

• Considering the Environment

  • Resource-dependence theory explores the implications regarding the optimal divisional structure of organizations, recruitment of board members and employees, production strategies, contract structure, external organizational links, and many other aspects of organizational strategy.
  • A company that demonstrates strength in differentiation relative to the competition benefits from implementing a divisional or matrix strategy, which in turn allows the company to manage a wide variety of demographic-specific products or services.

• Transfer Pricing

  • Transfer pricing refers to the setting, analysis, documentation, and adjustment of charges of goods and services within a multi-divisional organization, particularly in regard to cross-border transactions.
  • Division managers are provided incentives to maximize their own division's profits.
  • It can be shown algebraically that the intersection of the firm's marginal cost curve and marginal revenue curve (point A) must occur at the same quantity as the intersection of the production division's marginal cost curve with the net marginal revenue from production (point C).

• The Caucus

  • Voters have the option to draft resolutions introduced by delegates at later divisional caucuses or conventions.

• Principles of Organization Design

  • ., functional, divisional, matrix, or networked).