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What is Meant by 'Functional Structure' of an Organisation? - Business Studies

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प्रश्न

What is meant by 'functional structure' of an organisation?

Explain the concept of 'functional structure' of an organisation.

उत्तर

A functional organisational structure is one wherein the activities of a similar nature are grouped together in departments, and all departments in turn report to a head. For example, an organisation can have numerous departments such as production, human resources, finance and marketing, each of which in turn reports to a coordinating head.

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2014-2015 (March) Delhi Set 1

व्हिडिओ ट्यूटोरियलVIEW ALL [1]

संबंधित प्रश्‍न

'Steelo Ltd.' decided to set-up its steel manufacturing factory in the backward area of Orissa where very less job opportunities were available. People of that area welcomed this effort of 'Steelo 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. 'Steelo Ltd.' started earning huge profits. Another competing company asked its production manager 'Aslam' to investigate the reasons of earning huge profits by 'Steelo Ltd.' Aslam found that in both the companies there was systematic coordination among the various activities to achieve organisational goals. Every employee knew who was responsible and accountable to whom. The only difference was that in his organisation communication took place only through the scalar chain whereas 'Steelo 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 organisation which permits 'Steelo Ltd.' the flow of communication in all the directions.
b. State another advantage of the type of organisation identified in (a) above.
c. State any two values which 'Steelo Ltd.' wanted to communicate to the society


‘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.


State any three features of 'Informal Organisation'.


State any two disadvantage functional structure of an organisation


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

Nature


Write a short note on: Formal organisation.


Explain the principle of Esprit de corps as advocated by Henry Fayol.


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


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


A network of social relationships that arises spontaneously due to interaction at work is called:


A tall structure has a ____________.


Uranus Limited is a company dealing in metal products. The work is mainly divided into functions including production, purchase, marketing, accounts and personnel. Identify the type of organisational structure followed by the organisation.


Which type of organisational structure will you suggest for a firm which has diversified activities and operations requiring a high degree of specialisation?


A tall structure has a


Span of management can be classified into which of the following categories.


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


Which type of organisational structures is the most suitable for those business enterprises where a large variety of products are manufactured?


Match the STRUCTURE in an organisation in Column I with the appropriate EXPLANATION in Column II.

  Column I   Column II
(1) Organisation Structure (i) Grouping activities on the basis of products
(2) Functional Structure (ii) Framework within which managerial and operating tasks are performed.
(3) Divisional structure (iii) Grouping of similar jobs and organizing them as separate departments.

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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