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Difference between functional structure and divisional …

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Difference between functional structure and divisional structure
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Gaurav Seth 4 years, 7 months ago

<th>BASIS FOR COMPARISON</th> <th>FUNCTIONAL STRUCTURE</th> <th>DIVISIONAL STRUCTURE</th>
Meaning Functional Structure is one in which the reporting relationships of the organization are bifurcated according to their functional area. An organizational structure wherein the organizational functions are classified into divisions as per product or service lines , market, is called Divisional Structure.
Basis Functional areas Specialized divisions
Responsibility Difficult to fix responsibility on a particular department. Easy to fix responsibility for performance.
Autonomy of decisions Managers do not have autonomy of decisions. Managers have autonomy of decisions.
Cost Economical, as the functions are not repeated. Expensive as it involves repeatation of resources.
Appropriate for Small and simple organizations. Large and dynamic organizations.
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