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Tuesday, 11 February 2020

Distinction between Functional and Divisional structures

 Functional and Divisional structures 



 

SNO

 

Basis

 

Functional

 

Divisional

 

1

 

Formation

 

It is based upon Functions

 

It is based upon product lines and is supported by functions

 

2

 

Managerial

Development

 

Difficult, as each functional the manager has to report to manager

 

Easier Autonomy as well as the chance to perform multiple functions help in managerial development

 

3

 

Responsibility

 

Difficult to fix in anyone department

 

Easy to fix responsibility for the performance

 

4

 

Suitability

 

Suitable for medium-sized firms having a single product or small number of related products

 

Suitable for large firms having multiple  product with   distinct Characteristics.

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