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Answer» Difference between functional Structure and Divisional Structure: | Basis | Functional Structure | Divisional Structure | | 1. Meaning | It refers to grouping of jobs of similar nature under one department. | If refers to grouping of jobs of one product under one department. | | 2. Formation | It is formed on the basis of functions. | It is formed on the basis of product. | | 3. Specialisation | It leads to functional specialisation. | It is leads to product specialisation. | | 4. Responsibility | It is difficult to fix responsibility on a particular department. | It is easy to fix responsibility for performance on the department. |
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