Multidivisional structure

 Ø     Functional structure or department by function is suitable for small organizations and where there are one or two product lines. But, these organizations which are big enough and which have different suitable. Therefore, multidivisional structure or department by product must be adopted. Each division is created for one product line and department by product become sub department under division. The departmental manger is responsible for its expenses, revenues, profit, success and failure. Departmental and division managers are free to work. Therefore it facilities to measure the managerial as well as operational result and contribution of each department.