Sample Essay

When is a functional structure preferable to a divisional structure?

Organizations usually prefer functional structure rather than a divisional structure. There are numerous reasons why an organization prefers functional structure and the reasons and these reasons are given below:

  • A functional structure is quite a simple structure in which organizations can easily implement different strategies and they can achieve economies of scale.
  • Extra cost is not incurred in functional structure that is the reason why organizations prefer it.
  • The element of training and development is also quite simple in functional structure.
  • Research suggests that employees can easily adapt to a functional structure as it is quite simple to follow.
  • The divisional is a complex structure with different dimensions that is the reason why because of its complexity and perplex nature employees don’t prefer it.
  • Because of its simple nature employees and the organization like functional structure.
  • The senior management prefers the functional structure because they believe that principles of change management can easily

Therefore, it can be concluded that divisional structure has its benefits but organizations and employees prefer the functional structure because it is quite beneficial from them in both the short and the long run.

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