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State its any two advantages of the divisional structure

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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]

वीडियो ट्यूटोरियलVIEW ALL [1]

संबंधित प्रश्न

Differentiate between formal and informal organisations on the basis of the flow of communication.


What is meant by the divisional structure of an organisation?


State any two advantages of Formal Organisation


State the features of 'Formal Organisation'.


Differentiate between formal and informal organization on the following basis:

Behaviour


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

Responsibility


Differentiate between the functional organization and divisional organization


Write a short note on: Formal organisation.


Write five features of an informal business organisation.


The employees of ABC co. have formed a Dramatics club for their recreation. Name the type of organisation formed by the and state one of the features of such an organisation.


A tall structure has a


Span of management can be classified into which of the following categories.


Which of the following are a few prominent advantages of a divisional structure?


In what way an informal structure would benefit the organization?


______ 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.

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.

What will be the result of Situation 4?


Which of the following is true regarding Organisational Structure :


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.

  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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