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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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Situation 1: It is expected that employees who are performing similar tasks work under the same department. So the company now has HR, Marketing and Finance departments. The division is based on specific functions.
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Situation 3: The profit is increasing month by month due to the success of this structure of the organisation.
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|
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