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State any three limitations of divisional structure of an organisation.

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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.

दीर्घउत्तर
लघु उत्तरीय
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उत्तर १

Limitations of divisional structure:

  1. 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
  2. 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
  3. 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.
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उत्तर २

The disadvantages of divisional structure are as follows:

  1. Duplication: Every section handles its own marketing, production, and other tasks. Duplication of effort like this raises expenses.
  2. 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.
  3. 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.
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उत्तर ३

  1. Ignore Organisational Interest: Money has control over a division; in order to demonstrate his independence, he may ignore organisational interests.
  2. Conflict: Conflicts may emerge among departments over resource allocation.
  3. 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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अध्याय 9: Organising - EXERCISES [पृष्ठ २६७]

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सी. बी. गुप्ता Commerce Volume 2 [English] Class 12 ISC
अध्याय 9 Organising
EXERCISES | Q III. 13. (ii) | पृष्ठ २६७

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संबंधित प्रश्न

Name the type of organisational structure which promotes flexibility and initiative.


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Managerial development


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

Cost involved


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Neha runs a factory wherein she manufactures shoes. The business has been doing well and she intends to expand by  diversifying into leather bags as well as western formal wear  thereby making her company a complete provider of corporate  wear. This will enable her to market her business unit as the  one stop for working women. Which type of structure would  you recommend for her expanded organisation and why?


Write a short note on: Formal organisation.


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

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


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'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?


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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.

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What is the outcome of the organising process?


What can a wrong structure do to business performance?


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