Functional Structure is one in which the
reporting relationships of the organization are bifurcated according to their functional area
. An organizational structure wherein the organizational functions are classified into divisions as per product or service lines , market, is called Divisional Structure.
What are the differences among functional structure divisional structure and matrix structure?
A matrix structure is organized around product and function
, while a divisional structure focuses on product, market and geographic location. The structure of the organization has an impact on how information, resources and operations are conducted.
What is a divisional Organisational structure?
The divisional structure is
a type of organizational structure that groups each organizational function into a division
. … Each division contains all the necessary resources and functions within it to support that product line or geography (for example, its own finance, IT, and marketing departments).
What is organizational structure distinguish between functional and divisional structure on the following bases?
Ans.
Functional structure is formed on the basis of functions
, whereas divisional structure is formed on the basis of various product lines, which is further supported by functions.
What is meant by functional structure and divisional structure of work systems?
Functional Structure: In this type of structure, the
similar set of activities are grouped together into a function
and the major functions are termed as departments. Divisional Structure: In the divisional structure, the organisation divides into autonomous divisions which themselves display a functional structure.
What are the 4 types of organizational structures?
The four types of organizational structures are
functional, divisional, flatarchy, and matrix structures
.
What are the advantages of divisional structure?
- (1) Development of Divisional Heads: …
- (2) Divisional Results can be assessed: …
- (3) Quick Decision Making: …
- (4) Easy Expansion:
What are the advantages of functional structure?
- specialisation – departments focus on one area of work.
- productivity – specialism means that staff are skilled in the tasks they do.
- accountability – there are clear lines of management.
- clarity – employees understand their own and others’ roles.
What is functional structure example?
A functional structure is the
one that divides the major functions of a firm into different groups
, for example, information technology (IT) department, finance department, marketing department and production department. Airtel is a leading telecommunication company in India.
What is the functional organizational structure?
A functional organizational structure is
a structure used to organize workers
. They are grouped based on their specific skills and knowledge. It vertically structures each department with roles from the president to finance and sales departments, to customer service, to employees assigned to one product or service.
What is the function of divisional structure?
The divisional organizational structure
organizes the activities of a business around geographical, market, or product and service groups
. Thus, a company organized on divisional lines could have operating groups for the United States or Europe, or for commercial customers, or for the green widget product line.
What is divisional structure example?
Divisional. In a divisional structure,
people are grouped together based on the product or service they provide
, not the work they do. For example, a large corporation such as General Electric has divisions for electronics, transportation, and aviation, each with its own team of accountants, marketers, etc.
What is the difference between hierarchical and functional structure?
Similar to a hierarchical organizational structure, a functional org structure starts with positions
with the highest levels of responsibility at the top and goes down from there
. Primarily, though, employees are organized according to their specific skills and their corresponding function in the company.
What are the disadvantages of functional structure?
- It will lead to poor communication and coordination across functional units.
- There will be lack of understanding across departments.
- They focus more on their own goals and neglect the overall company objectives.
What companies use functional structure?
Functional Hierarchy.
The functional hierarchy feature of
Starbucks
Coffee’s organizational structure refers to grouping based on business function. For example, the company has an HR department, a finance department and a marketing department.
What are the main differences between a functional and a product team structure?
When a company uses functional departmentalization, marketing specialists, for example,
work together in the same department
. When a company uses product departmentalization, specialists in one product line work with other specialists in the same product line.
