How is a functional structure disparate from a divisional structure?
Basis of Difference |
Functional Structure |
Divisional Structure |
(i) Formation |
On the basis of work. |
On the basis of products. |
(ii) Specialisation |
Specialisation of job. |
Specialisation of product. |
(iii) Responsibility |
It is cumbersome to ascertain |
It is easier to ascertain divisional |
(iv) Managerial Development |
Department Manager is specialised in |
Divisional manager is versatile as he looks |
(v) Cost |
Since there is no duplication of jobs, cost |
Since there is duplication of jobs, cost |
(vi) Coordination |
All departmental heads work as per their |
Whole Division is headed by one |