Divisional Structure: When jobs related to one product are grouped under one department, it is termed as divisional structure. This type of structure is suitable for large organization, which have various product lines or several products.

Advantages of Divisonal Structure.

1. Product Specialization: The members of a division gain experience in all functions related to a particular product. Product specialization helps them in the development of varied skills and prepared them for higher positions. 

2. Greater Accountability: In divisional structure, each product department is treated as a profit Centre’ and is accountable for its own profit or loss. This provides a base for measuring performance and helps in fixing responsibility in case of poor performance. 

3. Flexibility: it promotes flexibility and initiative as each division functions as an autonomous unity. It leads to fast decision-making. 

4. Expansion and Growth: It facilitates expansion, diversification and growth as new divisions can be added without interrupting the existing operation.