'Despite various advantages, divisional structure form of organisation has certain disadvantages'. Discuss, highlighting major disadvantages.

Despite various advantages, divisional structure form of organization has certain disadvantages also. Some of them are as under: Costly affair: It incurs extra costs since each division has its own set of functional departments and attached staff. Competition between divisions: Divisionalisation and compartmentalization leads each division to compete for more resources, leading to competition among the divisions due to which one department suffers at the cost of another. Coordination problem: It is difficult to manage as a result of more divisions and departments. Change of priorities: The service departments such as research and development may change their priorities in order to get higher and quick returns on investments, potentially at the expense of overall organizational goals.