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A Differential Between 'Functional and 'Divisional' Structure of Organising on the Basis of the Following: Cost Involved

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Question

A differential between 'Functional and 'Divisional' structure of organising on the basis of the following:

Cost involved

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Solution

Basis Functional Structure Divisional Structure
The cost involved Less expensive and economical because
functions are not duplicated.
Expensive and not so economical because resources are required in different departments and there is a higher rate of duplication of
work
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2013-2014 (March) Foreign Set 2

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Diligent developers, a website design company in Bangalore is a startup initiative of Mr. Maniraj which aims at achieving a profit margin of 10% in its first year. Mr. Maniraj appointed Mr. Advait as the Digital marketing Head, Mr. Kiyansh as the head of Backend department and Mr. Nirved headed the Graphics Designing Department. Since each head was specialised in specific skills, it resulted in increased efficiency and better coordination.

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