Question

Multi-divisional structures are complex organizational designs that try to take advantage of two types of structures (i.e., functional and product structures) at the same time. Which of the following is a characteristic of multi-divisional structures? Option 1: Centralized decision-making Option 2: Siloed departments Option 3: Emphasis on specialization Option 4: Coordination between product divisions

Answer 1

Option 4: Coordination between product divisions

Multi-divisional structures, also known as multidivisional or M-form structures, typically emphasize coordination between product divisions. In this organizational design, different product or business units (divisions) operate semi-autonomously under a central corporate umbrella. The emphasis is on achieving synergy and coordination between these divisions, allowing them to specialize in their respective products or markets while still benefiting from centralized resources, decision-making, and strategic direction. This structure aims to balance specialization and coordination across different product lines or business units.