Which of the following is a difference between the functional design and the divisional design of organizations?
A) The functional design is used by large corporations, whereas the divisional design is used by small and new organizations.
B) The functional design looks similar to the H-form design, whereas the divisional design looks similar to the U-form design.
C) In the functional design, senior management usually provides coordination across departments, whereas in the divisional design, coordination is usually decentralized down to the various operating companies.
D) In the functional design, each business unit within a firm has its own human resource department, whereas in the divisional design, a firm has a single corporate-level human resource department to manage all human resource activities.

Question

Quizplus · Accepted Answer

In the functional design, coordination across departments is typically centralized and managed by senior management, ensuring that all departments align with the overall organizational goals. In contrast, the divisional design decentralizes coordination to the divisions themselves, allowing them to operate more independently and respond more quickly to changes in their specific markets or sectors. This is a key difference between the two organizational designs.

Which of the Following Is a Difference Between the Functional