Question

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?

Options

• Functional

• Divisional

• Linear

• None of these

Answer 1

Functional

Explanation -

Because emphasis is focused on specific functions, a functional structure leads to occupational specialisation. Employees execute identical activities within a department and are able to enhance performance, which promotes efficiency in manpower utilisation.