division

(noun)

A section of a large company.

Related Terms

Examples of division 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.
    • If the division builds luxury sedans or SUVs, for example, the SUV division will have its own sales, engineering, and marketing departments distinct from those departments within the luxury sedan division.
    • In addition, the failure of one division does not directly threaten the other divisions.
    • Some disadvantages of this structure include operational inefficiencies from separating specialized functions—for example, finance personnel in one division do not communicate with those in another division.

  • Considering Company Size

    • A functional structure focuses on developing highly efficient and specific divisions which perform specialized tasks.
    • The downside of this structure is that each division is generally autonomous, with limited communication across business functions.
    • As a result, different divisions will handle different products or geographic locations/markets.
    • For example, Disney may have a division for TV shows, a division for movies, a division for theme parks, and a division for merchandise.
    • This structure combines functional and divisional concepts to create a product-specific and division-specific organization.

  • Schein's Common Elements of an Organization

    • The four common elements of an organization include common purpose, coordinated effort, division of labor, and hierarchy of authority.
    • Division of labor is also known as work specification for greater efficiency.
    • Using division of labor, an organization can parcel out a complex work effort for specialists to perform.

  • The Organizational Chart

    • An organization chart (sometimes called an organizational chart, an org chart, or an organogram) is a diagram that illustrates the structure of an organization, the relationships and relative ranks of its business units/divisions, and the positions or roles assigned to each unit/division.
    • This means that each function—e.g., research, production, sales, and finance—has separate internal divisions for each product.

  • Personal Biases

    • Personal biases can be divisive forces within a decision processes as they often lead to less than ideal outcomes for decision makers.

  • The Role of Teams in Organizations

    • A large company with divisions around the world can form teams that bring together people with the necessary background and skills to achieve its goals.

  • Matrix Structure

    • ., research, production, sales, and finance—has separate internal divisions for each product.

  • Increasing Coordination

    • Employees within the functional divisions of an organization tend to perform a specialized set of tasks, such as engineering.

  • Why Study Organizational Theory?

    • The concept of factory production amplified production as a whole and allowed for the organized division of labor to start.

  • Administrative Management: Fayol's Principles