Business-Studies

Q.15: Distinguish between Functional and Divisional structure on the basis of the following points :
(a) Coordination;
(b) Managerial Development; and
(c) Cost.

Answer:

Basis

Functional Structure

Divisional Structure

Coordination

Easier to manage people with similar training/ skills.

Conflicts and rivalries can occur between divisions.

Managerial development

It does not help in managerial development as functional manager lack autonomy.

It helps in managerial development as they have autonomy and knowledge of varied aspect of product.

Cost

It is economical as there is no duplication.

It is costlier, as there is duplication of resources.



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