Functional Organization : Functional Organization contains specialized units that report to a single authority. Specialized units contain personnel with various but related skills grouped by similarities. Each unit handles one aspect of the product or service provided. Management is responsible to coordinate and mash all units’ efforts.
Pros:
Simplicity - Focus on a single product or service.
Stablity - Business strategies are less inclined to need changes or updating.
Specialization - Employees grow within one specified field so that they can perfom well. Also, specialized units report only to a single authority, which is different from Matrix Organization
Cons:
Communication - Does not encourage interdivisional cooperation and knowledge sharing - It takes time to materialize every decision. - All of them are so distinct from each other’s viewpoint. - Narrow and limited - Too much focus results in neglecting the bigger picture and work efficiently towards a common goal.
Divisional Organization :
Divide the organization according to the type of work, region, or product. This structure divides the employees based on the product/customer segment or geographical location.
Pros :
- Allows flexible and quick response to environmental changes and it also enhances innovation and different strategies.
- Multiple Choice of product to fulfill the manufacture line and also the need from market
- No need to rely heavily on the parent company or top management of the company.
- Workers with similar talents and abilities can cooperate, have easier to access to company resources due to management being familiar with workers’ needs.
Cons :
- HR or Finance and marketing departments for each division inevitably duplicate some efforts and increase costs