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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
‘Panda Trucks Ltd.’ decided to set-up its new truck manufacturing factory in the backward area of Bihar where very less job opportunities were available. People of that area welcomed this effort of ‘Panda Trucks Ltd.’. To attract people to work in its factory it also decided to provide many other facilities like school, hospital, market etc. in the factory premises.
‘Panda Trucks Ltd.’ started earning huge profits. Another competiting company asked its production manager ‘Sanjay’ to investigate the reasons of earning huge profits by ‘Panda Trucks Ltd’. Sanjay found out that in both the companies there was systematic co-ordination among the various activities to achieve organizational goals. Every employee knew who was responsible and accountable to whom. The only difference was that in his
organization communication took place only through the scalar chain, whereas ‘Panda Trucks Ltd.’ was allowing flow of communication in all the directions as per the requirement which lead to faster spread of information as well as quick feedback.
a. Identify the type of organization which permits ‘Panda Trucks Ltd.’ the flow of communication in all the directions.
b. State an advantage of the type of organization identified in (a) above.
c. State any two values which ‘Panda Trucks Ltd.’ wanted to communicate to the society.
Differentiate between formal and informal organisations on the basis of origin
Define organization as a structure.
The differential between 'Functional and 'Divisional' structure of organising on the basis of the following:
Meaning
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:
Specialisation
A differential between 'Functional and 'Divisional' structure of organising on the basis of the following:
Managerial development
What does the term ‘Span of management’ refer to?
Write a short note on: Formal organisation.
It is defined as the framework within which managerial and operating tasks are performed.
Which of the following is not a merit of functional structure?
A tall structure has a
Span of management refers to
Grouping of activities on the basis of functions is a part of
______ is suitable for companies who focuses on operational specialization.
______ ensures that the heads of separate business units in the organisation are responsible for profit or loss of their unit and have authority over it.
Which type of organisational structures is the most suitable for those business enterprises where a large variety of products are manufactured?
Which of the following is a disadvantage of divisional structure?
Which statement is correct regarding division of work:
|
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- 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.
