1) The splitting up of a large organization into separate divisions, based on the products or services provided or on the geographical location of a particular plant. Although some management functions are repeated separately in each division, and economies of scale are not maximized, many large organizations that encompass a diversity of activities are structured in this way. Because decision making is decentralized to the divisional managers, a swift response to a change in markets is possible. Coordination between divisions is achieved by a central management. See decentralization
2) The process of transforming the subsidiary organizations in a group into divisions of a single integrated company.

Big dictionary of business and management. 2014.

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  • divisionalization — di‧vi‧sion‧a‧li‧za‧tion [dˌvɪʒnəlaɪˈzeɪʆn ǁ lə ] also divisionalisation noun [uncountable] when an organization, company etc is divided into several divisions or separate companies …   Financial and business terms

  • divisionalization — divisionalizaˈtion or divisionalisaˈtion noun • • • Main Entry: ↑division …   Useful english dictionary

  • decentralization — The delegation of decision making responsibilities to the subunits of an organization. The advantages claimed for decentralization are that local managers are more aware of immediate problems, are better motivated, and have greater control over… …   Big dictionary of business and management

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