The divisionalized form differs from the other four configurations in one central respect : it is not a complete but a partial structure, superimposed on others. Those others are in the divisions, each of which I shall be arguing is driven toward machine bureaucracy.
An organization divisionalizes for one reason above all-because its product lines are diversified. (And that tends to happen most often in the largest and most mature organizations, those that have run out of opportunities or become stalled in their traditional markets.) Such diversification encourages the organization to create a market – based unit, or division, for each distinct product line (as indicated in Exhibit II ) and to grant considerable autonomy to each division to run its own business.