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State its any two advantages of the divisional structure - Business Studies

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प्रश्न

State its any two advantages of the divisional structure

State its any four advantages of divisional structure

Discuss the advantages of Divisional Structure.

दीर्घउत्तर
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उत्तर १

Advantages of divisional structure:

  1. Flexibility and Initiative: Under the divisional structure, each division functions independently. The divisional heads have the authority to take their own decisions. This promotes flexibility and initiative in the organisation.
  2. Growth: Divisional structure enables easy growth and expansion of the organisation. This is because new divisions can be easily added without affecting existing divisions.
  3. Managerial Efficiency: Under the divisional structure, each division is headed by a division head. The division head performs multiple functions for the division. In this way, he gets multiple opportunities for new experience and development. It helps in developing his skills and knowledge
  4. Gauging Performance: Under the divisional structure, each division is responsible for its own profit and loss. In this way, the performance of each division of the organisation can be clearly evaluated, and so, necessary actions can be taken.
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उत्तर २

The divisional structure offers the following advantages:

  1. Executive development: Division leaders acquire expertise in every aspect of a certain product. They are better prepared for senior management roles by developing a variety of talents.
  2. Accountability: Because expenses and resources are easily defined and allocated to divisions, performance can be measured and accountability can be established.
  3. Flexibility: Every section operates independently. This encourages initiative, adaptability, and prompt decision-making.
  4. Expansion and growth: New divisions can be added as the business expands without affecting ongoing operations. Therefore, divisional organisation promotes growth and expansion.
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अध्याय 9: Organising - QUESTION BANK [पृष्ठ २७५]

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'Steelo Ltd.' decided to set-up its steel manufacturing factory in the backward area of Orissa where very less job opportunities were available. People of that area welcomed this effort of 'Steelo 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. 'Steelo Ltd.' started earning huge profits. Another competing company asked its production manager 'Aslam' to investigate the reasons of earning huge profits by 'Steelo Ltd.' Aslam found that in both the companies there was systematic coordination among the various activities to achieve organisational goals. Every employee knew who was responsible and accountable to whom. The only difference was that in his organisation communication took place only through the scalar chain whereas 'Steelo 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 organisation which permits 'Steelo Ltd.' the flow of communication in all the directions.
b. State another advantage of the type of organisation identified in (a) above.
c. State any two values which 'Steelo Ltd.' wanted to communicate to the society


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Differentiate between the functional organization and divisional organization


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A tall structure has a ____________.


It is defined as the framework within which managerial and operating tasks are performed.


Which type of organisational structures is the most suitable for those business enterprises where a large variety of products are manufactured?


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.

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  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.

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  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.

Recession is an 'inherent constraint' in almost all manufacturing organisations.


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