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Differentiate Between Functional Organization and Divisional Organization - Commerce

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प्रश्न

Differentiate between the functional organization and divisional organization

फरक स्पष्ट करा

उत्तर

Functional Structure: In a functional structure, positions are grouped based on the type of work they do and the skills required to complete that work. Organizations employing this kind of structure divide themselves into functional areas like marketing, engineering, and accounting.

Each functional area is usually led by an administrator with expertise in that field. The strengths of the functional structure include fostering, supervising and efficiently utilizing specialized resources.

Divisional Structure: In a divisional structure, an organization divides itself not into functional areas but into divisions. These divisions, which can be created around product lines, markets or geographic regions, usually are given more independence and sometimes even act like separate companies. This structure is usually employed by businesses whose growth into new products, markets or regions makes the functional structure too complex and cumbersome. By creating these pseudo-sovereign divisions, decisions can be made more quickly and employees can specialize in the unique aspects of the division in which they work, providing for more efficient use of resources.

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2014-2015 (March) Set 1

व्हिडिओ ट्यूटोरियलVIEW ALL [1]

संबंधित प्रश्‍न

Differentiate between formal and informal organisation on the basis of origin.


Differentiate between formal and informal organization on the basis of the following:

Origin


Draw a diagram depicting a functional structure. 


A tall structure has a ____________.


Grouping of activities on the basis of product lines is a part of ______.


As the span of management increases in an organisation, the number of levels of management in the organisation:


______ is suitable for companies who focuses on operational specialization.


Yummy Foods Ltd. has its registered office in Lucknow, manufacturing unit in Kanpur and marketing department in Chandigarh. ______ type of organisational structure should be adopted by the company to achieve its objectives.


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.

Which type of organisation structure is discussed 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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