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प्रश्न
How is a functional structure different from a divisional structure?
उत्तर
The following points highlight the difference between a functional structure and a divisional structure.
|
Basis of Difference |
Functional structure |
Divisional structure |
|
Creation |
These are created on the basis of functions. |
These are created on the basis of product-lines along with the functions. |
|
Costs |
It is economical as duplication of work is minimised. |
It is costly as there is higher rate of duplication of work and resources between various departments. |
|
Decision Making |
Decision making is centralised as the decisions are taken by the coordinating head for various departments. |
Decision making is decentralised as each division of the product line have their own decision making authority. |
|
Duplication of work |
Due to functional specialisation overlapping of work is minimised. |
Due to each product department having the same functions, overlapping of work is increased. |
|
Suitability |
More suitable for companies who focuses on 'operational specialisation'. |
More suitable for multi-product companies focussing on 'differentiated products'. |
|
Functional Hierarchy |
Horizontal functional hierarchy is formed while the departments are devised on the basis of key operations. |
Vertical functional hierarchy is formed while devising the departments on the basis of product-line categories. |
|
Management |
Management is difficult as each work has to report to a coordinating head at the top level of management. |
Management is easier as different line of department is formed for each product. |
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संबंधित प्रश्न
State any three limitations of divisional structure of an organisation.
State the features of 'Formal Organisation'.
Define organization as a structure.
Differentiate between formal and informal organization on the following basis:
Behaviour
The differential between 'Functional and 'Divisional' structure of organising on the basis of the following:
Meaning
A differential between 'Functional and 'Divisional' structure of organising on the basis of the following:
Specialisation
State any two circumstances under which the functional structure will prove to be an appropriate choice.
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?
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?
It refers to the number of subordinates that can be effectively managed by a superior:
Which type of organisational structure will you suggest for a firm which has diversified activities and operations requiring a high degree of specialisation?
Which of the following are a few prominent advantages of a divisional structure?
Which type of organisational structure is the most suitable when the size of the organisation is large and is producing one line of product?
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.
What will be the result of Situation 4?
Aarohan Ltd. is a company manufacturing automobiles where division of work into key areas includes production, purchase, marketing, accounts and personnel. Which of the following is a disadvantage of the organization structure of Aarohan Ltd.?
The organisational structure and the composition of the board of directors, are one of the internal factors of micro environment of a business organisation.
|
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. |
- Identify and state the organisational structure adopted by the company.
- State two benefits and two limitations of the identified structure highlighted in the above case.
