Question
How is a functional structure disparate from a divisional structure?
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S. No.
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Basis of Difference
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Functional Structure
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Divisional Structure
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1.
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Formation
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On the basis of work.
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On the basis of products.
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2.
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Specialisation
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Specialisation of job.
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Specialisation of product.
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3.
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Responsibility
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It is cumbersome to ascertaindepartmental responsibilities. (No department will take responsibility for adverse results).
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It is easier to ascertain divisionalresponsibilities. (Divisional Manager cannot shirk responsibility for adverse results).
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4.
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Managerial Development
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Department Manager is specialised in doing one kind of job only. So limited development takes place.
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Divisional manager is versatile ashe looks after many varied jobs. So immense development is possible.
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5.
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Cost
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Since there is no duplication of jobs, cost incurred is less.
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Since there is duplication of jobs, cost incurred is high.
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6.
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Coordination
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All departmental heads work as per their discretion so it becomes difficult to establish coordination.
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Whole Division is headed by oneDivisional Head, who controls all the divisional activities. So coordination is implicitly established.
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