Question

Differentiate between 'functional' and 'divisional' structure of organization on any six basis.

Answer 1

On the basis	Functional structure	Divisional structure
Meaning	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, a market is called Divisional Structure.
Basis	Functional areas	Specialized divisions
Responsibility	Difficult to fix responsibility on a particular department.	Easy to fix responsibility for performance.
Cost	Economical, as the functions are not repeated.	Expensive as it involves repetition of resources.
Appropriate for	Small and simple organizations.	Large and dynamic organizations.
Autonomy of decisions	Managers do not have autonomy of decisions.	Managers have autonomy of decisions.