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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
‘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 two advantages of Formal Organisation
The differential between 'Functional and 'Divisional' structure of organising on the basis of the following:
Meaning
A differential between 'Functional and 'Divisional' structure of organising on the basis of the following:
Responsibility
State any two circumstances under which the functional structure will prove to be an appropriate choice.
Differentiate between the functional organization and divisional organization
Explain the principle of Esprit de corps as advocated by Henry Fayol.
A network of social relationships that arises spontaneously due to interaction at work is called:
It is defined as the framework within which managerial and operating tasks are performed.
As the span of management increases in an organisation, the number of levels of management in the organisation:
______ is suitable for companies who focuses on operational specialization.
______ 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.
Which type of organisation structure is discussed in the above case?
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.
Why do you think the profit is increasing as given in Situation 3?
Which of the following is an advantage of functional structure :
Which of the following gives shape to the organisation structure:
The organisational structure and the composition of the board of directors, are one of the internal factors of micro environment of a business organisation.
| 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.
