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Difference between functional and divisional structure

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Difference between functional and divisional structure

Posted by Nikhil Soni 4 years, 11 months ago

CBSE > Class 12 > Business Studies

1 answers

Gaurav Seth 4 years, 11 months ago

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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