Business Studies

Differentiate between 'functional' and 'divisional' structure of organization on any six basis. 


SOLUTION
 On the basis Functional structure Divisional structure
 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, a 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.
 Cost Economical, as the functions are not repeated. Expensive as it involves repetition of resources.
 Appropriate for Small and simple organizations. Large and dynamic organizations.
 Autonomy of decisions Managers do not have autonomy of decisions. Managers have autonomy of decisions.
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Subjective Medium Published on 18th 09, 2020
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