Aula 3.2d Estrutura Organizacional Divisional

Summary

This video discusses the divisional organizational structure, often used by large companies like General Motors. Divisions are organized by product, customer, or region, with each functioning as a semi-autonomous profit center. The structure balances decentralization, where tactical decisions are made by divisions, and centralization, where strategic decisions are made by top management. Key advantages include increased adaptability and proximity to customers, while challenges include resource duplication and potential internal competition between divisions. The speaker emphasizes the importance of providing resources alongside autonomy to ensure divisions thrive within this structure.

Takeaways

• 😀 The divisional organization structure is designed to help companies adapt to various products, customers, or regions, making it highly flexible.
• 😀 Each division operates almost independently, allowing for autonomy within the company but with some limitations.
• 😀 Divisions function as 'profit centers,' where each unit is responsible for its own financial results, similar to a separate business entity.
• 😀 Decentralization in divisional structure means that tactical decisions are made within divisions, but strategic decisions remain centralized at the top management level.
• 😀 The divisional structure allows for improved coordination, especially when focused on specific products or customer groups.
• 😀 Divisional autonomy is crucial, but it requires adequate resources to ensure the division can fulfill its responsibilities effectively.
• 😀 One challenge of the divisional structure is the potential for resource duplication, as each division may have its own management systems.
• 😀 The divisional structure enhances responsiveness to customer needs, as divisions can quickly adapt to market changes.
• 😀 Internal competition between divisions can be beneficial in certain contexts, encouraging divisions to perform better.
• 😀 A potential disadvantage is the competition between divisions, which could lead to conflicts with the company’s broader objectives or interests.
• 😀 Despite the autonomy, functional structures (such as finance and HR) may remain centralized to support divisional operations and ensure overall alignment with company goals.

Q & A

What is divisional organization, and why was it implemented?

Divisional organization was implemented by long-time guests at General Motors. It was designed to divide the company into various divisions to cater to different product types, customer needs, and geographical regions.

What are the different types of departmentalization mentioned in the script?

The script mentions three types of departmentalization: by product, by customer, and by territory.

What is the role of autonomy in a decentralized divisional structure?

In a decentralized structure, each division operates autonomously but not completely independently. The divisions have a high level of independence, but they require financial resources from top management to fulfill their responsibilities effectively.

How do divisions function as profit centers in a decentralized structure?

Divisions in a decentralized structure act as profit centers where the financial results and profits are determined individually by each division. These results are reported separately from the overall company's performance.

What is the significance of aggregated financial results in a decentralized structure?

While each division reports its financial results separately, these results are aggregated to provide a comprehensive view of the company's performance. This process may involve using simple or weighted averages, depending on the indicator being measured.

What strategic and tactical decisions are centralized or decentralized in this organizational structure?

Strategic decisions are typically centralized and handled by top management. However, tactical decisions are decentralized, allowing divisions more autonomy in their day-to-day operations. Some specialized functional structures are kept centralized to support both the top management and divisional needs.

How does the functional structure interact with divisional structures?

Functional structures sometimes remain centralized within the company to provide necessary support for divisional operations. This mix of centralized and decentralized structures helps streamline decision-making and resource allocation.

What are the advantages of a divisional structure?

The advantages include better coordination by product, increased flexibility, adaptability, and greater responsiveness. Additionally, it provides closer proximity to customers, facilitating more effective performance control within each division.

What are some disadvantages of a divisional structure?

Some disadvantages include higher costs due to duplicated resources, challenges in integrating and coordinating activities, and the potential for inter-divisional competition. Additionally, the focus on divisional interests might override the company’s global interests.

Can competition between divisions be beneficial in a divisional structure?

Yes, competition between divisions can be beneficial in some cases. It can foster a sense of urgency and encourage divisions to perform better, as long as it is managed carefully and aligned with the company’s overall objectives.