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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 - Business Studies

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प्रश्न

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.
आकलन
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उत्तर

  1. The organisational structure adopted by Diligent Developers is functional structure. Functional structure is an organisational design that groups similar or related jobs together.
    • Benefits of functional structure:
      1. It leads to occupational specialization since emphasis is placed on specific functions.This promotes efficiency in utilization of manpower as employees perform similar tasks within a department and are able to improve performance.
      2. It promotes control and coordination within a department because of similarity in the tasks being performed.
    • Limitations of functional structure:
      1. A functional structure places less emphasis on overall enterprise objectives than the objectives pursued by a functional head. Such practices may lead to functional empires wherein the importance of a particular function may be overemphasised. Pursuing departmental interests at the cost of organisational interests can also hinder the interaction between two or more departments.
      2. It may lead to problems in coordination as information has to be exchanged across functionally differentiated departments.
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2023-2024 (March) Board Sample Paper

वीडियो ट्यूटोरियलVIEW ALL [1]

संबंधित प्रश्न

‘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 limitations of divisional structure of an organisation.


State any two disadvantage functional structure of an organisation


State any two disadvantages Informal Organisation.


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

Specialisation


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

Responsibility


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

Managerial development


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

Cost involved


company has its registered office in Delhi, manufacturing  unit at Gurgaon and marketing and sales department at  Faridabad. The company manufactures the consumer  products. Which type of organisational structure should it adopt to achieve its target?


A company manufacturing sewing machines set up in 1945 by the British promoters follows formal organisation culture in totality. It is facing lot of problems in delays in decision making. As the result it is not able to adapt to changing business environment. The work force is also not motivated since they cannot vent their grievances except through formal channels, which involve red tape. Employee turnover is high. Its market share is also declining due to changed circumstances and business environment. You are to advise the company with regard to change it should bring about in its organisation structure to overcome the problems faced by it. Give reasons in terms of benefits it will derive from the changes suggested by you.


Differentiate between the functional organization and divisional organization


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.


Yummy Foods Ltd. has its registered office in Lucknow, manufacturing unit in Kanpur and marketing department in Chandigarh. ______ type of organisational structure should be adopted by the company to achieve its objectives.


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 a disadvantage 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 type of organisational structure is the most suitable when the size of the organisation is large and is producing one line of product?


Yummy Foods Ltd. has its registered office in Lucknow, manufacturing unit in Kanpur and marketing department in Chandigarh. ______ type of organisational structure should be adopted by the company to achieve its objectives.


An organization structure is deliberately designed by the top management to facilitate smooth functioning of the organisation. Which of the following is not a feature of such a structure?


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