. Distinguish between functional structure and divisional structure on the basis of
formation. (Compartment 2014)
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Functional structure is formed on the basis of functions, whereas divisional structure is formed on the basis of various product lines, which is further supported by functions.
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Explanation:
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.
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