S No
|
Basis
|
Functional Structure
|
Divisional Structure
|
1
|
Formation
|
Formation is based on functions
|
Formation is based on product lines and is supported by functions.
|
2
|
Specialisation
|
Functional specialisation.
|
Product specialisation.
|
3
|
Responsibility
|
Difficult to fix on a department.
|
Easy to fix responsiblity for performance
|
4
|
Managerial Development
|
Difficult, as each functional manager has to report to the top management.
|
Easier, autonomy as well as the chance to perform multiple functions helps in managerial development.
|
5
|
Cost
|
Functions are not duplicated hence economical.
|
Duplication of resources in various departments, hence costly.
|
6
|
Coordination
|
Difficult for a multi-product company.
|
Easy, because all functions related to a particular product are integrated in one department.
|