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Divisional Structure

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Divisional Structure

There are so many ways in which organizations can structure themselves. A divisional structure refers to an organizational structure that groups organizational functions into divisions that correspond to either geographies or divisions (Ogliastri et al., 2016). Each division usually contains all the needed functions and resources within it to support that geography or product line (such as its marketing departments, IT, or finance). In other words, each structure can determine how it performs or operates. Divisional structures are advantageous because when one division fails, other or remaining divisions are no threatened by the failure (Ogliastri et al., 2016). However, this kind of organizational structure can lead to operational inefficiencies because specialized functions are separated.

Morals

Morals can be described as the rules, the standards, or the judgments of ethical conduct in any society (Ferrell, 2016). The primary purpose of having morals is to help people know the behaviors that are considered to be acceptable or unacceptable. In business, organizational morals can be described as the ethical values or standards that guide the conduct of employees in an organization or that guide the way an organization relates to its clients and community (Ferrell, 2016). These values include respect for property, respect for life, honesty, transparency, etc. Without these moral values, employees would not know what is considered to be unacceptable or acceptable behavior in an organization.

Stakeholders

A stakeholder or stakeholder can be described as social groups, organizations, societies, or people that have a stake in the business (Lumen Learning, n.d.). Stake in business refers to the interest that stakeholders have in the activities of a business. These interests can include legal obligations and interests, interests on business property, ownership interests, and ethical interests. Legal obligations may include obligations to pay salaries or wages or to honor contracts. Moral rights may include the right not to harm consumers through business activities, among others.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

References

Ferrell, O. C. (2016). A framework for understanding organizational ethics. In Business ethics: New challenges for business schools and corporate leaders (pp. 15-29). Routledge.

Lumen Learning (n.d.). Business Stakeholders. Retrieved from https://courses.lumenlearning.com/wmopen-introbusiness/chapter/business-stakeholders-2/

Ogliastri, E., Jäger, U. P., & Prado, A. M. (2016). Strategy and structure in high-performing nonprofits: Insights from Iberoamerican cases. Voluntas: International Journal of Voluntary and Nonprofit Organizations, 27(1), 222-248.

 

 

 

 

 

 

 

 

 

 

 

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