Question

difference between divisional structure and functional structure class 12th business studies.
difference in simple language and explain it simply plzz

Answer 1

Definition of Functional Structure

The functional structure is one such structure, in which the activities of similar nature are grouped together, i.e. the activities belonging a particular function are taken together as a separate department. These independent departments have their own functions to perform and objectives to pursue. For instance, there are autonomous departments for marketing, production, purchase, human resource, research and development, etc. in an organisation.

In a functional organisational structure, each department is supervised by a functional head called as the department manager. The manager would be an expert in the respective field, and he will be held responsible for the performance of his department. Moreover, the functional heads of all the departments report directly to the top management of the organisation.

Definition of Divisional Structure

Divisional Structure is defined as an organisational structure that clubs together various functions on the basis of product lines and regional divisions. Further, each division of the organisation has its own essential resources and functions like production, marketing, purchase, human resource, etc. In this type of organisational structure, the divisions are headed by the general manager who controls the regular business activities. The general manager is accountable to the top management of the organisation for the performance of their division.

Divisional Structure is applied to those organisation which are large and have more than one product line to continue. Suppose an organisation produces and sells four products, A, B, C, D. All these products are organised into separate departments and operated as individual units which are supported by functions.