Differentiate between functional and multi-divisional structures. Create a diagram of each.

What will be an ideal response?


A functional structure groups employees by the functions they perform for the organization such as marketing, finance, or human resources, whereas multi-divisional structures are bureaucratic organizational forms in which employees are grouped into divisions around product, geographic regions, or clients. Each of these divisions operates relatively autonomously from the others and has its own functional groups. Multi-divisional structures generally develop from companies with functional structures whose interests and goals become too diverse for that structure to handle.

Student diagrams will vary but should clearly illustrate the differences between functional and multi-divisional structures.

Business

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