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State Any Two Disadvantage Functional Structure of an Organisation - Business Studies

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प्रश्न

State any two disadvantage functional structure of an organisation

Explain any four disadvantages of functional structure.

उत्तर १

Disadvantages of a functional structure

1) Under the functional structure, every department focuses on its departmental objective instead of organisational objective

2) There can be coordination problem in functional structure as different departments and exchange information coordinate with each other in order to achieve the organisational goal

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उत्तर २

Disadvantages of a functional structure

1) Difficulty in achieving organisation’s goals: Each department becomes more specialised in their own way and less focussed on the organisation’s goals.

2) Problems to coordinate: To deal with a large number of diversified activities simultaneously, a high degree of coordination is required. This coordination becomes difficult among departments.

3) Inflexibility: In each department, all the employees become more specialised in one particular activity. Over the years, they become inflexible to handle the diversified activities in an organisation.

4) Difficult to fix accountability: If each department focussed on their own objectives, then there is a chance of a conflict of interests. In this case, business enterprise fails to achieve the set goal and it becomes difficult to identify any particular department for accountability.

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2014-2015 (March) Foreign Set 2

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संबंधित प्रश्‍न

State its any two advantages of the divisional structure


State the features of 'Formal Organisation'.


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

Flow of communication


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:

Managerial development


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 does not have duplication of work?


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


Under this type of organisational structure, manpower is grouped on the basis of different products manufactured.


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


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


______ 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 when the size of the organisation is large and is producing one line of product?


Which of the following is true regarding Organisational 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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