Final answer:
Hierarchical Escalation involves moving an issue up the organizational hierarchy, whereas Functional Escalation moves an issue to a different department or team with the necessary expertise.
Step-by-step explanation:
The differences between Hierarchical Escalation and Functional Escalation are key in understanding how internal processes and problem-solving mechanisms work within an organization. Hierarchical Escalation refers to the process where an issue is escalated up the chain of command within an organization's existing hierarchy. It means that if a problem cannot be resolved at a lower level, it is passed up to higher levels of management for resolution.
On the other hand, Functional Escalation occurs when an issue requires expertise or authority beyond what is available at the current level of handling. This form of escalation moves the issue to a different department or group that has the specific expertise to handle that particular situation even if it is not up the hierarchy but across the organization.
To sum up, while Hierarchical Escalation focuses on the organizational structure and moving issues up the ladder, Functional Escalation is more concerned with finding the right skill set or function within the organization to address the issue, without necessarily moving up the hierarchy.