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प्रश्न
What is a divisional structure? Discuss its advantages and limitations.
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उत्तर
A divisional structure in an organisation comprises of separate business units and division. Each unit has a divisional manager who has the authority of the unit and is responsible for the performances of the unit.
The advantages of divisional structure are as follows:-
• Product Specialisation helps in the development of the skills as it gains experience from all forms regarding that product. This helps in achieving high aims with it.
• Divisional heads are accountable for profits, as revenues, cost related to different departments can be easily identified and assigned to them. This provides a proper basis for management. It also takes responsibility in poor performances and takes actions accordingly.
• It promotes flexibility and initiative as each division functions as an autonomous unit and it leads to further decision making.
• It provides expansion and growth as new divisions can be added without interrupting the existing ones by assigning new head and staff for the new division.
Limitations of divisional structure are as follows:-
• It may lead to a conflict because of formation of similar divisions due to different policies and different allocation of funds and each division will try to maximise its profit at the cost of the other.
• Creation of similar type of divisions leads to increase in the expenditure as there may be duplication of activities across products.
• It grants the manager the supreme authority to exercise his controls related to a particular division. In course of time such a manager may become selfish and see his own interests ignoring the organisations interest.
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संबंधित प्रश्न
'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
State its any two advantages of the divisional structure
Differentiate between formal and informal organization on the basis of the following:
Meaning
How is a functional structure different from a divisional structure?
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.
A tall structure has a ____________.
It refers to the number of subordinates that can be effectively managed by a superior:
Identify the type of organisational structure which facilitates occupational specialisation.
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.
A network of social relationship that arise spontaneously due to interaction at work is called :
Grouping of activities on the basis of functions is a part of
______ 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.
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. |
Which type of organisational structure is the most suitable when the size of the organisation is large and is producing one line of product?
Which of the following is true regarding Organisational Structure :
Which of the following gives shape to the organisation 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. |
- 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.
