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प्रश्न
How is a functional structure different from a divisional structure?
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उत्तर
The following points highlight the difference between a functional structure and a divisional structure.
|
Basis of Difference |
Functional structure |
Divisional structure |
|
Creation |
These are created on the basis of functions. |
These are created on the basis of product-lines along with the functions. |
|
Costs |
It is economical as duplication of work is minimised. |
It is costly as there is higher rate of duplication of work and resources between various departments. |
|
Decision Making |
Decision making is centralised as the decisions are taken by the coordinating head for various departments. |
Decision making is decentralised as each division of the product line have their own decision making authority. |
|
Duplication of work |
Due to functional specialisation overlapping of work is minimised. |
Due to each product department having the same functions, overlapping of work is increased. |
|
Suitability |
More suitable for companies who focuses on 'operational specialisation'. |
More suitable for multi-product companies focussing on 'differentiated products'. |
|
Functional Hierarchy |
Horizontal functional hierarchy is formed while the departments are devised on the basis of key operations. |
Vertical functional hierarchy is formed while devising the departments on the basis of product-line categories. |
|
Management |
Management is difficult as each work has to report to a coordinating head at the top level of management. |
Management is easier as different line of department is formed for each product. |
APPEARS IN
संबंधित प्रश्न
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Meaning
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Specialisation
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| Column I | Column II | ||
| (1) | Organisation Structure | (i) | Grouping activities on the basis of products |
| (2) | Functional Structure | (ii) | Framework within which managerial and operating tasks are performed. |
| (3) | Divisional structure | (iii) | Grouping of similar jobs and organizing them as separate departments. |
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Situation 2: There are similarities in the tasks performed within the same department.
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|
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- Identify and state the organisational structure adopted by the company.
- State two benefits and two limitations of the identified structure highlighted in the above case.
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