A functional organizational structure groups employees together based on their functions or roles and

areas of specialization (Woodruff, 2019).  The advantages are: The employees are arranged based on
their skills to do a specific task efficiently and have a specific goal, they can work cooperatively since
they are equally capable, since they are arranged based on their skills, they can easily facilitate
accountability for the work, and lastly, they can feel confident in their work. The disadvantages are: the
employees might get bored because of repetitive work, they do not have time to learn other skills, they
might feel insecure from each other because not all employees have the same level of skill, and lastly,
they can’t work with other departments because they have a specific task for them only.

Divisionalized organizational structure is a structural scheme in which company output is managed by

several distinct divisions (Charles, 2018). The advantages are: each division within the organization is
dedicated to a single product or service, it is good for an organization with multiple products since it can
help shorten product development cycle, the employees can easily obtain resources because each
division has a director or vice president, and lastly, unlike functional, divisionalized organizational
structure allows the employees in a single division to interact with each other. The disadvantages are:
the organization could end up with duplicate resources as different divisions strive to develop new
offerings, conflicts may occur among different divisions over allocation of funds, and lastly, divisions can
bring compartmentalization that can lead to incompatibilities.

Reference:

Woodruff, J. (2019, June 12). Definition of Functional Organizational Structure. Retrieved from
https://bizfluent.com/

Charles, T. (2018, May 18). Divisionalized Organizational Structure. Retrieved from

https://yourbusiness.azcentral.com/