Write any two differences between functional and divisional structures

1.	Write any two differences between functional and divisional structures.
Answer» 1. Functional structure: Grouping the jobs of similar nature and organizing these major functions as separate departments create a functional structure. All departments report to a co-coordinating head. It is more useful for large organisation. 2. Divisional structure: Grouping of activities on the basis of product is known as divisional structure. Under this structure the top-level delegates extensive authorities to the divisional heads. The divisional head is in charge of manufacturing, purchase, sales, engineering and other departments of the division. He is also made responsible for the profit or loss of his division. Divisional structure is advantageous for an organisation involved in production of different lines of products.

Write any two differences between functional and divisional structures.

Answer»

1. Functional structure: Grouping the jobs of similar nature and organizing these major functions as separate departments create a functional structure. All departments report to a co-coordinating head. It is more useful for large organisation.

2. Divisional structure: Grouping of activities on the basis of product is known as divisional structure. Under this structure the top-level delegates extensive authorities to the divisional heads. The divisional head is in charge of manufacturing, purchase, sales, engineering and other departments of the division.

He is also made responsible for the profit or loss of his division. Divisional structure is advantageous for an organisation involved in production of different lines of products.

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