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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 - EXERCISES [पृष्ठ २६७]

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संबंधित प्रश्न

'Himalaya Ltd', is engaged in manufacturing of washing machines. The target of the organisation is to manufacture 500 washing machines a day. There is an occupational specialisation in the organisation which promotes the efficiency of employees. There is no duplication of efforts in such type of organisation structure.

Identify the type of organisation structure described above


Define organization as a structure.


Differentiate between formal and informal organization on the following basis:

Behaviour


Identify the network of social relationships which arises spontaneously due to interaction at work.


What does the term ‘Span of management’ refer to?


A company X limited manufacturing cosmetics, which has  enjoyed a pre-eminent position in business, has grown in  size. Its business was very good till 1991. But after that,  new liberalised environment has seen entry of many MNC’s  in the sector. With the result the market share of X limited  has declined. The company had followed a very centralized  business model with Directors and divisional heads making  even minor decisions. Before 1991 this business model had  served the company very well as consumers had no choice.  But now the company is under pressure to reform. What  organisation structure changes should the company bring  about in order to retain its market share? How will the  changes suggested by you help the firm? Keep in mind that  the sector in which the company is FMCG.


Explain the principle of Esprit de corps as advocated by Henry Fayol.


Which of the following does not follow the scalar chain?


Uranus Limited is a company dealing in metal products. The work is mainly divided into functions including production, purchase, marketing, accounts and personnel. Identify the type of organisational structure followed by the organisation.


Rishabh has joined as a Creative Head in an entertainment company. He always ensures that the work has been divided into small and manageable activities and also the activities of similar nature are grouped together. Identify the related step in organising process being mentioned in the above lines.


______ is suitable for companies who focuses on operational specialization.


Which type of organisational structure is the most suitable when the size of the organisation is large and is producing one line of product?


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:


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.?


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 the 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 a 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.

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.

Organisation structure is the framework within which which tasks are performed?


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