CBSE Class 12 Business Studies 2019 Outside Delhi set 1

Question : 15

Total: 44

Distinguish between Functional and Divisional structure on the basis of the following points:
(a) Coordination;
(b) Managerial Development; and
(c) Cost.

Solution:

Basis	Functional Structure	Divisional Structure
(a) Coordination	Co-ordination is difficult for a company having multiple products.	Co-ordination is easy as all functions related to similar products are under one department.
(b) Managerial Development	Difficulty in managerial development, as every functional managers has to report to the top management	Ease in managerial development; as managers have the autonomy and can perform multiple functions.
(c) Cost	It is economical as there is no duplication.	It is costlier, as there is duplication of resources.

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