Final answer:
The distinction between Functional and Divisional Structures is not primarily about centralization versus decentralization. Functional Structures divide the organization by specialized areas, while Divisional Structures are organized around semi-autonomous units or divisions with their own resources and goals.
Step-by-step explanation:
The statement that the difference between the Functional and Divisional Structure tends to be centralization versus decentralization is false. While there are elements of centralization and decentralization in both structures, the primary distinction lies elsewhere. The Functional Structure is such that the organization is divided based on specialized functional areas such as marketing, finance, and human resources. This often leads to operational efficiencies within functional groups. In contrast, a Divisional Structure is one in which the organization is divided into semi-autonomous units or divisions, each with its own resources and objectives, which may include product lines or geographic areas. Both types of organizational structures can contain aspects of both centralized and decentralized decision-making, but their core distinction lies in how responsibilities and tasks are divided within the organization.