Welcome to the NCERT Solutions for Class 12 Business Studies - Chapter Organising. This page offers a step-by-step solution to the specific question from Exercise 3, Question 5: . With detailed answers and explanations for each chapter, students can strengthen their understanding and prepare confidently for exams. Ideal for CBSE and other board students, this resource will simplify your study experience.
How is a functional structure different from a divisional structure?
Difference between a functional structure and a divisional structure:
| Basis of difference | Functional Structure | Divisional Structure |
|---|---|---|
| Meaning | An organisation structure in which departments are created on the basis of different functions performed in the organisation is called functional structure. | An organisation structure in which various departments are created on the basis of products, territory or region is called a divisional structure. |
| Formation | It is formed on the basis of functions performed in the organisation. | It is formed on the basis of product line territory or region. |
| Specialisation | It leads to functional specialisation. | It leads to product specialisation. |
| Managerial Development | It does not help in managerial development as functional managers lack autonomy. |
It helps in managerial development, as they have autonomy and knowledge of varied aspects of a product. |
| Cost | It is economical as there is no duplication. | It is costlier, as there is duplication of resources. |
| Responsibility | It is difficult to fix responsibility in one department. | It is easier to fix responsibility in each division. |
| Suitability | It is suitable for organisations which deal with a single product category. | It is suitable for diversified or multi product firms. |
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Read MoreWelcome to the NCERT Solutions for Class 12 Business Studies - Chapter . This page offers a step-by-step solution to the specific question from Excercise 3 , Question 5: How is a functional structure different from a divisional structure?....
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