question_answer 24)

How is a functional structure different from a divisional structure?

Answer:

Difference between functional and divisional structure  

Basis	Functional Structure	Divisional Structure
Formation	It is based on functions performed	It is based on product lines
Specialization	Functional specialisation	Product specialisation
Responsibility	Difficult to fix responsibility	Easy to fix responsibility
Managerial development	Difficult, as each manager specializes in one function	Easy, as each manager perform multifunctions
Cost	Economical, as no duplication of work	Costly, due to duplication of functions
Co-ordination	Difficult for a multi-product company	Easy, because all functions related to a particular product are integrated in one department