What is a disadvantage of a divisional structure?

A divisional structure organizes a company based on products, services, or geographical locations, allowing each division to operate semi-independently. While this structure has its advantages, one significant disadvantage is the duplication of roles. This occurs because each division may have its own support functions, such as marketing, human resources, and finance, leading to multiple teams performing the same or similar functions across different divisions.

This duplication can result in inefficiencies and higher operational costs, as resources are spread out across divisions that may replicate efforts rather than leveraging shared services. In contrast, the other options relate to benefits typical of a divisional structure, such as effective communication within divisions, higher accountability as division managers are focused on specific areas of performance, and clear responsibilities defined within each division.