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Give any two differences between functional structure and divisional structure.

Answer»

Difference between functional Structure and Divisional Structure:

BasisFunctional StructureDivisional Structure
1. MeaningIt refers to grouping of jobs of similar nature under one department.If refers to grouping of jobs of one product under one department.
2. FormationIt is formed on the basis of functions.It is formed on the basis of product.
3. SpecialisationIt leads to functional specialisation.It is leads to product specialisation.
4. ResponsibilityIt is difficult to fix responsibility on a particular department.It is easy to fix responsibility for performance on the department.


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