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A Company, Which Manufactures a Popular Brand of Toys, Has Been Enjoying Good Market Reputation. It Has a Functional Organisational Structure with Separate Departments - Business Studies

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प्रश्न

A company, which manufactures a popular brand of toys, has been enjoying good market reputation. It has a functional  organisational structure with separate departments for Production, Marketing, Finance, Human Resources and  Research and Development. Lately to use its brand name and  also to cash on to new business opportunities it is thinking  to diversify into manufacture of new range of electronic toys  for which a new market is emerging. Which organisation  structure should be adopted in this situation? Give concrete  reasons with regard to benefits the company will derive from  the steps it should take.

संक्षेप में उत्तर
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उत्तर

The organisation should shift from functional structure to divisional structure as it is looking to diversify into manufacture new range of toys.

The benefits will be as follows:-

• The performance will be easily accessed.

• Easy Decision making.

• New electronic toys will be added without disturbing the previous toys.

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अध्याय 5: Organising - Long Answer [पृष्ठ १४०]

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एनसीईआरटी Business Studies Part I Principles and Functions of Management [English] Class 12
अध्याय 5 Organising
Long Answer | Q 6 | पृष्ठ १४०

वीडियो ट्यूटोरियलVIEW ALL [1]

संबंधित प्रश्न

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

Authority


The differential between 'Functional and 'Divisional' structure of organising on the basis of the
following:

Formation


Write five features of an informal business organisation.


Answer the following question.
Voltage fluctuations have been common and quite high in India. They harm our electrical appliances like televisions, refrigerators, and air conditioners, often leaving them in a permanently damaged condition. N-Guard Company decided to manufacture stabilizers for North India where the voltage fluctuation ranges from 220 V to 230 V. Once the demand for North India was taken care of, they decided to launch stabilizers of varying voltages from 90 V – 260 V for meeting the requirements of voltage fluctuations in other regions of India also. Three engineers were appointed for South, West and East regions of India, as the voltage was different in all the three regions.

Though all the engineers were appointed to manufacture stabilizers but the product differed from region to region.

(a) Identify the organisational structure of the N-Guard Company.

(b) State any two advantages and two limitations of the structure identified in the above para.


Differentiate between formal and informal organisations on the basis of

  1. origin,
  2. authority, and
  3. flow of communication.

Which organisation structure does not have duplication of work?


Identify the type of organisational structure which facilitates occupational specialisation.


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


Which of the following is not true about formal organisation?


A network of social relationship that arise spontaneously due to interaction at work is called :


The form of organisation known for giving rise to rumours is called


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


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


Which of the following points highlight the suitability of functional structure?


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.

Which type of organisation structure is discussed in the above case?


Which statement is correct regarding division of work:


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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