Q.(OR) Write any two differences between Functional and Divisional structure of management.

Functional organisation gives importance to the work/function performed.

This GSEB Class-12 Commerce organising question distinguishes structure types. In a functional structure, similar activities (production, finance, marketing, HR) are grouped so that specialisation of work drives the design.

• Linear (line) → straight vertical chain of authority. …

Under Functional departmentation, the organisation is divided into departments on the basis of the functions performed (production, marketing, finance, personnel, etc.), with each department grouping all activities related to that one function.

When an organisation decides how to group its various activities and jobs, it can choose between (broadly) a functional structure and a divisional structure.

In a Functional structure, all jobs that relate to a common function are clubbed together into one department. For example, all activities relating to selling/advertising/market research go into the Marketing department; all activities relating to raising/using funds go into the Finance department; all activities relating to manufacturing go into the Production department. Each department is headed by a functional expert.

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The question describes a company where jobs of similar nature are grouped into departments like HR, Marketing, Purchase, and R&D — this is the hallmark of a functional organisational structure. The correct answer is (C) Functional organisational structure.

In functional organisation, work is more important than the department.

Functional organisation, developed from F.W. Taylor's ideas, divides the organisation on the basis of major functions (such as purchase, production, sales, finance). Each functional specialist has authority over his function throughout the enterprise, so the type of work and specialisation receive more emphasis than any single department. Line …

(a) Functional structure — jobs of a single-product firm are grouped by function (production, marketing, finance), which is what this company needs.

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Functional organisation groups jobs by function under specialist heads. Alternatively, line organisation is the simplest structure with a direct vertical flow of authority.

In a functional organisation, activities are grouped into departments on the basis of functions — for example, production, finance, marketing and personnel — each placed under a functional specialist. This promotes specialisation and efficiency.

For the OR part: a line organisation is the oldest and simplest form in which authority flows downward in a straight (scalar) line from the top executive to the lowest worker, with each person responsible to one superior.

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Functional structure is the grouping of similar jobs into departments on the basis of functions.

Under a functional organisation structure, activities are grouped together on the basis of functions or work to be performed. All tasks related to a particular function are put in one department — for example, a production department, a marketing department, a finance department and a personnel department — each headed by a functional specialist. This promotes specialisation and makes supervision easier. It is suitable where an organisatio …

Departmentalisation of work leads mainly to specialisation. Correct option: (a) Specialization.

When work is divided and grouped into departments (production, marketing, finance, etc.), each employee handles a narrow set of related tasks. Repeating the same work builds skill, speed and expertise — this is specialisation, a key benefit of dividing and departmentalising work.

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