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. |