A. Functional structure
B. Divisional structure (A) Functional Structure: In functional structure activities are grouped and departments are created on the basis of specific functions to be
performed. For example, all the jobs related to production are grouped
under production department, sales departments etc.
(B) Divisional Structure
Dividing the whole enterprise according to the major products to be manufactured (like metal, plastic, cosmetics etc.) is known as divisional organization structure.
Suitability:
1. For the enterprises where large varieties of products are manufactured using different productive resources. (Multi-product) Example- Tata, Reliance.
2. When an organisation grows and needs to add more employees, more departments or introduce new level of management.
