Question

Differentiate between Functional structure and Divisional structure on any four bases. 

Answer 1

S. No.	Basis	Functional Structure	Divisional Structure
1.	Definition	Employees are organized according to their particular functions or duties (for example, marketing and finance).	Employees are organized by product, service, or geographic location.
2.	Focus	Targets specific functions to improve competence and efficiency.	Focuses on products, markets, or regions to improve consumer or market responsiveness.
3.	Accountability	Difficult to determine since responsibilities are distributed among functions.	It is easier to build because each division acts as an individual entity with its own goals.
4.	Flexibility	Decisions take longer to make due to function interdependence.	More flexible and responsive to changes in the external environment.