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A Differential Between 'Functional and 'Divisional' Structure of Organising on the Basis of the Following: Specialisation - Business Studies

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प्रश्न

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

Specialisation

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उत्तर

Basis Functional Structure Divisional Structure
Specialisation Brings in operational specialisation. Brings in product specialisation.
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2013-2014 (March) Foreign Set 2

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संबंधित प्रश्न

Answer the following question:
Aradhana and Gandharv are heads of two different departments in 'Yumco Ltd.' 'They are efficient managers and are able to motivate the employee of their respective departments to improve performance. However, their drive to excel in their own sphere of activity instead of giving emphasis on objectives of the enterprise has hindered the interaction between the departments that Aradhana and Gandharv are heading. Often there are inter-departmental conflicts and they have become incompatible. This has proved to be harmful in the fulfillment of the organisational objectives. The situation has deteriorated to such an extent that the CEO of 'Yumco Ltd.' has hired a consultant, Rashmi, to resolve the problem. After studying the situation closely, Rashmi found that the problem has arisen due to inflexibility and a narrow perspective on the part of both Aradhana and Gandharv. She is of the view that this situation is a result of the type of organisational structure 'Yumco Ltd.’ has adopted.
From the above information, identify the organisational structure adopted by ‘Yumco Ltd.’ and state any three advantages of the structure so identified.


State any three features of 'Informal Organisation'.


State any two disadvantages Informal Organisation.


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

Meaning


Write five features of an informal business organisation.


Which of the following does not follow the scalar chain?


It refers to the number of subordinates that can be effectively managed by a superior:


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


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


The employees of ABC co. have formed a Dramatics club for their recreation. Name the type of organisation formed by the and state one of the features of such an organisation.


What are the benefits of divisional structure?


______ 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 of the following is true regarding Organisational Structure?


______ 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. 


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.

What will be the result of Situation 4?


Which statement is correct regarding division of work:


Which of the following is true regarding Organisational Structure :


Which of the following is an advantage of functional structure :


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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