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Differentiate between functional structure and divisional structure on the basis of
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Business Studies
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Amrita
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Differentiate between functional structure and divisional structure on the basis of:
(I) Formation
(II) Specialisation
(III) Responsibility
(IV) Managerial development
(V) Cost
(VI) Coordination
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Kunal
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Best answer
Difference between Functional and Divisional structure
Basis
Functional Structure
Divisional Structure
(I) Formation
Formation is based on functions
Formation is based on product lines and is supported by functions. Specialisation
(II) Specialisation
Functional specialisation.
Product specialisation.
(III) Responsibility
Difficult to fix on a department.
Easy to fix responsibility for performance
(IV) Managerial Development
Difficult, as each functional manager has to report to the top management.
Easier, autonomy as well as the chance to perform multiple functions helps in managerial development
(V) Cost
Functions are not duplicated hence economical.
Duplication of resources in various departments, hence costly.
(VI) Coordination
Difficult for a multiproduct company
Easy, because all functions related to a particular product are integrated in one department.
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