Which is a disadvantage of a multi-divisional organizational structure?

The choice highlighting duplication of functions across divisions accurately denotes a significant disadvantage of a multi-divisional organizational structure. In such a model, each division operates semi-autonomously, managing its own functions related to finance, human resources, marketing, and other operations. This independence can lead to multiple divisions performing the same tasks, which ultimately results in an inefficient allocation of resources and increased operational costs.

Moreover, the redundancy of roles can create inefficiencies and can lead to a lack of coherence in the overall strategy of the organization. For instance, if each division independently develops its marketing strategy or customer service protocols without coordinating with others, the organization may miss opportunities for synergy or standardization that could lead to cost savings or enhanced brand consistency.

In contrast, other aspects of a multi-divisional structure, such as enhanced operational efficiency, standardization across divisions, and improved collaboration, are generally seen as advantages. However, these benefits can sometimes be overshadowed by the challenges posed by duplicated efforts and resources that misalign with the overall strategic goals of the organization.