Can an organisation have both functional and divisional departmentation?
Answers
Answer:
Organizational Structure refers to a system describing an organisation’s hierarchy within which all the managerial tasks are performed. It represents the authority-activity relationship in an organization. The two most commonly used structures of the organization are functional structure and divisional structure. The functional organisational structure is one where employees are grouped together, according to their area of specialisation.
Explanation:
BASIS FOR COMPARISON 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 , 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.
Organizational Structure: Functional Structure and Divisional Structure ! Also learn about its advantages and disadvantages!
The organizational structure can be classified under following two types:
1. Functional Structure
2. Divisional Structure
Functional Structure:
This is the simplest & the most prevalent form of organizational structure. Functional organisational structure refers to the structure in which different departments are created on the basis of major functions performed in the organisation.
Advantages of functional structure are as follows:
1. Specialisation:
2. Coordination
3. Increasing Managerial Efficiency