1.

Distinguish between: Functional and Divisional Structure on the basis of the following points: (i) Co-ordination (ii) Managerial Development and (iii) Cost 

Answer»

Difference between Functional Structure and Divisional Structure.

BasisFunctional StructureDivisional Structure
Co-ordinationVery difficult for a Multi Product CompanyLess Difficult because of Functions related to a particular Product are Integrated in the Product Divisions 
Managerial DevelopmentDifficult because of Narrow Functional Specification.Functional Specification . Easier because Autonomy to Perform Multiple Functions is given to Divisional Heads 
Cost FactorEconomical, as Functional Departments are Not Duplicated  Costly, as each Division has to Create its Cross Functional Departments.



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