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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
Name the type of organisational structure which promotes flexibility and initiative.
State any three features of 'Informal Organisation'.
State the features of 'Formal Organisation'.
What does the term ‘Span of management’ refer to?
company has its registered office in Delhi, manufacturing unit at Gurgaon and marketing and sales department at Faridabad. The company manufactures the consumer products. Which type of organisational structure should it adopt to achieve its target?
A company manufacturing sewing machines set up in 1945 by the British promoters follows formal organisation culture in totality. It is facing lot of problems in delays in decision making. As the result it is not able to adapt to changing business environment. The work force is also not motivated since they cannot vent their grievances except through formal channels, which involve red tape. Employee turnover is high. Its market share is also declining due to changed circumstances and business environment. You are to advise the company with regard to change it should bring about in its organisation structure to overcome the problems faced by it. Give reasons in terms of benefits it will derive from the changes suggested by you.
Which of the following is not the disadvantage of the formal organisation?
Grouping of activities on the basis of product lines is a part of ______.
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
Grouping of activities on the basis of functions is a part of
In what way an informal structure would benefit the organization?
Which of the following gives shape to the organisation structure?
Yummy Foods Ltd. has its registered office in Lucknow, manufacturing unit in Kanpur and marketing department in Chandigarh. ______ type of organisational structure should be adopted by the company to achieve its objectives.
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 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.
|
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.
