Question

How is a functional structure different from a divisional structure?

Answer 1

SOLUTION :  

Difference between functional structure and divisional structure :  

FUNCTIONAL STRUCTURE :  

• Formation : It is based on the basis of number of functions.

• Managerial development : Managerial development of a functional manager is difficult due to lack of autonomy of operations.

• Responsibility : It is difficult to fix as functioning of one department affects the functioning of other departments.

 

DIVISIONAL STRUCTURE :  

• Formation : It is formed on the basis of number of product lines and supported by specialised functions.

• Managerial development : Managerial development of divisional manager is possible due to autonomy over different functions.
• Responsibility : It is easy to fix the responsibility of divisional heads as one division does not affect the work of other division under normal.

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Answer 2

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.