True or False: The goal behind a divisional structure is to create larger, more managed units within the organization.

A divisional structure is designed to create semi-autonomous units within an organization that are responsible for specific product lines, services, or geographic regions. Each division operates like its own company, with dedicated resources and management. This structure allows for greater focus on specific markets or product needs, improving responsiveness and accountability.

While it may seem that larger units would arise from a divisional structure, the primary aim is not to create larger entities, but rather to enhance flexibility and coordination within distinct operational areas. By having smaller, focused divisions, organizations can better tailor their strategies and operations to meet the unique demands of different markets or products.

In contrast, other organizational structures, like a functional or matrix structure, may prioritize efficiency and specialized departments over the increased management focus of divisions. So, stating the goal is to create larger, more managed units does not accurately reflect the intention behind adopting a divisional structure.