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प्रश्न
State any three limitations of divisional structure of an organisation.
State any two disadvantages of divisional structure
Discuss the disadvantages of Divisional Structure.
State any three disadvantages of divisional structure of organization.
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उत्तर १
Limitations of divisional structure:
- Departmental Conflicts: With simultaneous functioning of multiple departments, it may happen that a conflict arises between departments with regard to decisions such as allocation of funds and resources. For example, a conflict may arise with regard to the division of workforce among departments
- Increase in Cost: As each division functions separately, several activities which are common to the organisation are performed for each division separately. In other words, there is the duplication of activities. This leads to an increase in the overall cost for the organisation
- Ignorance of Overall Objectives: It may happen that in achieving the divisional goals, the overall organisational goals take a backseat. In other words, while focusing on divisional objectives, divisional managers ignore the overall organisational objectives.
उत्तर २
The disadvantages of divisional structure are as follows:
- Duplication: Every section handles its own marketing, production, and other tasks. Duplication of effort like this raises expenses.
- Conflicts: Divisions may clash on how to divide up the money. At the expense of other divisions, a certain division may aim to optimise its own profits.
- Misuse of autonomy: Every division chief is in charge of all division-related operations. He might rise to prominence and try to establish his independence at the expense of the organization's interests.
उत्तर ३
- Ignore Organisational Interest: Money has control over a division; in order to demonstrate his independence, he may ignore organisational interests.
- Conflict: Conflicts may emerge among departments over resource allocation.
- Higher Costs: Maintaining many divisions raises administrative and operational costs by duplicating tasks and giving each division its own set of identical functions.
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संबंधित प्रश्न
State its any two advantages of the divisional structure
State any two disadvantage functional structure of an organisation
The differential between 'Functional and 'Divisional' structure of organising on the basis of the
following:
Formation
State any two circumstances under which the functional structure will prove to be an appropriate choice.
What is a divisional structure? Discuss its advantages and limitations.
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.
Differentiate between the functional organization and divisional organization
Which of the following does not follow the scalar chain?
Grouping of activities on the basis of product lines is a part of ______.
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.
Under this type of organisational structure, manpower is grouped on the basis of different products manufactured.
Rishabh has joined as a Creative Head in an entertainment company. He always ensures that the work has been divided into small and manageable activities and also the activities of similar nature are grouped together. Identify the related step in organising process being mentioned in the above lines.
______ is suitable for companies who focuses on operational specialization.
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. |
| Due to spread of COVID-19 pandemic, employees of almost all the companies were working online from their homes. In 2022 when most of the companies called them back to their office and started working offline, ‘Taty Software Ltd.’ still asked their employees to work from home. Because of this, employees of “Taty Software Ltd.” were feeling bored, hence for recreation they formed a cricket-club. They started meeting every Saturday and Sunday on a ground near their office building. |
- Identify and state the type of organisation formed by the employees of 'taty Software Ltd.
- Also, state any two advantages and two limitations of the type of organisation identified in (i) above.
|
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. |
- Identify and state the organisational structure adopted by the company.
- 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. |
- Identify and state the organisational structure adopted by the company.
- State two benefits and two limitations of the identified structure highlighted in the above case.
______ organisations are formed spontaneously as a result of social interaction among employees in an organisation.
