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A Differential Between 'Functional and 'Divisional' Structure of Organising on the Basis of the Following: Managerial Development - Business Studies

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प्रश्न

A differential between 'Functional and 'Divisional' structure of organising on the basis of the following:

Managerial development

उत्तर

Basis Functional Structure Divisional Structure
Managerial
development
No scope for development of managers because they are specialised in one
particular function.
Scope for development of
managers because they are
familiar with many functions.

 

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2013-2014 (March) Foreign Set 2

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संबंधित प्रश्न

Name the type of 'organisational structure' which promotes efficiency in utilisation of manpower.


'Himalaya Ltd', is engaged in manufacturing of washing machines. The target of the organisation is to manufacture 500 washing machines a day. There is an occupational specialisation in the organisation which promotes the efficiency of employees. There is no duplication of efforts in such type of organisation structure.

Identify the type of organisation structure described above


Answer the following question.
State any two advantages of Formal Organisation


The differential between 'Functional and 'Divisional' structure of organising on the basis of the
following:

Formation


A differential between 'Functional and 'Divisional' structure of organising on the basis of the following:

Cost involved


How does informal organisation support the formal organisation? 


Neha runs a factory wherein she manufactures shoes. The business has been doing well and she intends to expand by  diversifying into leather bags as well as western formal wear  thereby making her company a complete provider of corporate  wear. This will enable her to market her business unit as the  one stop for working women. Which type of structure would  you recommend for her expanded organisation and why?


A company, which manufactures a popular brand of toys, has been enjoying good market reputation. It has a functional  organisational structure with separate departments for Production, Marketing, Finance, Human Resources and  Research and Development. Lately to use its brand name and  also to cash on to new business opportunities it is thinking  to diversify into manufacture of new range of electronic toys  for which a new market is emerging. Which organisation  structure should be adopted in this situation? Give concrete  reasons with regard to benefits the company will derive from  the steps it should take.


Differentiate between formal and informal organisations on the basis of (i) origin, (ii) authority, and (iii) flow of communication.


Which organisation structure is based on rules and procedures?


Which of the following is not the disadvantage of the formal organisation?


A tall structure has a ____________.


It is defined as the framework within which managerial and operating tasks are performed.


Which of the following points highlight the suitability of functional structure?


Which of the following are a few prominent advantages of a divisional structure?


______ is suitable for multi-product companies focusing on 'differentiated products'. 


Which of the following gives shape to the organisation structure?


Read the following text and answer the questions given below:

'Pappu Sweets Makers' is a sweets making company which has turnover in crores. In order to manage the work in the organisation, the departments have been created on the basis of functions. Examine the following situations of this organisation and give answers accordingly :

Situation 1: It is expected that employees who are performing similar tasks work under the same department. So the company now has HR, Marketing and Finance departments. The division is based on specific functions.

Situation 2: There are similarities in the tasks performed within the same department.

Situation 3: The profit is increasing month by month due to the success of this structure of the organisation.

Situation 4: There has been minimum duplication of efforts as the same department is taking care of single function.

Why do you think the profit is increasing as given in Situation 3?


Diligent developers, a website design company in Bangalore is a startup initiative of Mr. Maniraj which aims at achieving a profit margin of 10% in its first year. Mr. Maniraj appointed Mr. Advait as the Digital marketing Head, Mr. Kiyansh as the head of Backend department and Mr. Nirved headed the Graphics Designing Department. Since each head was specialised in specific skills, it resulted in increased efficiency and better coordination.

However, problems arose when Mr. Advait started considering group objectives superior to organisational objectives and stopped exchanging information with Mr. Kiyansh and Mr. Nirved. The company had to bear the brunt of lack of coordination and was unable to achieve its objectives.

  1. Identify and state the organisational structure adopted by the company.
  2. State two benefits and two limitations of the identified structure highlighted in the above case.

Diligent developers, a website design company in Bangalore is a startup initiative of Mr. Maniraj which aims at achieving a profit margin of 10% in its first year. Mr. Maniraj appointed Mr. Advait as the Digital marketing Head, Mr. Kiyansh as the head of Backend department and Mr. Nirved headed the Graphics Designing Department. Since each head was specialised in specific skills, it resulted in increased efficiency and better coordination. However, problems arose when Mr. Advait started considering group objectives superior to organisational objectives and stopped exchanging information with Mr. Kiyansh and Mr. Nirved. The company had to bear the brunt of lack of coordination and was unable to achieve its objectives.
  1. Identify and state the organisational structure adopted by the company.
  2. State two benefits and two limitations of the identified structure highlighted in the above case.

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