What structural choice is commonly made by leaders of large organizations to create smaller, more manageable units?

The divisional structure is a popular choice among leaders of large organizations to create smaller, more manageable units. This structure allows firms to group their operations around products, services, markets, or geographical locations, resulting in semi-autonomous divisions that can operate more efficiently and effectively. Each division typically has its own resources, including its own management, enabling faster decision-making and a more focused approach to their specific markets or customer needs.

By organizing into smaller divisions, organizations can improve their responsiveness to market changes, enhance accountability, and tailor strategies that align with their targeted segments. This structure is particularly beneficial in larger organizations where diverse products or services require distinct marketing and operational strategies. In contrast, other structural choices may not provide the same level of autonomy or focus—making the divisional structure preferable for managing complexity within extensive organizations.