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प्रश्न
State any two disadvantage functional structure of an organisation
Explain any four disadvantages of functional structure.
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उत्तर १
Disadvantages of a functional structure
- Under the functional structure, every department focuses on its departmental objective instead of organisational objective
- There can be coordination problem in functional structure as different departments and exchange information coordinate with each other in order to achieve the organisational goal
उत्तर २
Disadvantages of a functional structure
- Difficulty in achieving organisation’s goals: Each department becomes more specialised in their own way and less focussed on the organisation’s goals.
- Problems to coordinate: To deal with a large number of diversified activities simultaneously, a high degree of coordination is required. This coordination becomes difficult among departments.
- Inflexibility: In each department, all the employees become more specialised in one particular activity. Over the years, they become inflexible to handle the diversified activities in an organisation.
- Difficult to fix accountability: If each department focussed on their own objectives, then there is a chance of a conflict of interests. In this case, business enterprise fails to achieve the set goal and it becomes difficult to identify any particular department for accountability.
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संबंधित प्रश्न
Differentiate between formal and informal organisations on the basis of origin
What is meant by the divisional structure of an organisation?
State any three features of 'Informal Organisation'.
A differential between 'Functional and 'Divisional' structure of organising on the basis of the following:
Specialisation
What does the term ‘Span of management’ refer to?
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.
Answer the following question.
Voltage fluctuations have been common and quite high in India. They harm our electrical appliances like televisions, refrigerators, and air conditioners, often leaving them in a permanently damaged condition. N-Guard Company decided to manufacture stabilizers for North India where the voltage fluctuation ranges from 220 V to 230 V. Once the demand for North India was taken care of, they decided to launch stabilizers of varying voltages from 90 V – 260 V for meeting the requirements of voltage fluctuations in other regions of India also. Three engineers were appointed for South, West and East regions of India, as the voltage was different in all the three regions.
Though all the engineers were appointed to manufacture stabilizers but the product differed from region to region.
(a) Identify the organisational structure of the N-Guard Company.
(b) State any two advantages and two limitations of the structure identified in the above para.
Which organisation structure is based on rules and procedures?
A network of social relationships that arises spontaneously due to interaction at work is called:
A network of social relationship that arise spontaneously due to interaction at work is called :
Span of management refers to
______ is suitable for multi-product companies focusing on 'differentiated products'.
______ 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 structures is the most suitable for those business enterprises where a large variety of products are manufactured?
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. |
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?
Aarohan Ltd. is a company manufacturing automobiles where division of work into key areas includes production, purchase, marketing, accounts and personnel. Which of the following is a disadvantage of the organization structure of Aarohan Ltd.?
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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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.
