Distinction between 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.