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What is meant by the divisional structure of an organisation? - Business Studies

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प्रश्न

What is meant by the divisional structure of an organisation?

Give the meaning of 'divisional structure' of organising

Give the meaning of 'Divisional Structure of an organisation' with the help of a diagram

Explain the concept of 'Divisional Structure'.

What is meant by divisional organisation?

स्पष्ट कीजिए
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उत्तर १

Divisional structure refers to an organisational structure wherein various diversified business activities of an organisation are grouped in different divisions. Each division is headed by a divisional manager who is responsible for the performance of that division. Further, under each division, multiple functions are performed such as production, sales and marketing. In other words, under each division, there is a functional structure.

This can be depicted with the help of an example. Suppose an organisation deals in the manufacturing of four products, namely footwear, garments, jewellery and leather accessories. Accordingly, there are four divisions, each of which reports to the Managing Director. Further, under each division, there are four departments—production, sales, marketing and advertising.

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उत्तर २

Divisional structure refers to an organisational structure wherein various diversified business activities of an organisation are grouped in different divisions. Each division is headed by a divisional manager who is responsible for the performance of that division. Further, under each division, multiple functions are performed such as production, sales and marketing. In other words, under each division, there is a functional structure.

The following diagram depicts the divisional structure of the organisation.

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अध्याय 9: Organising - EXERCISES [पृष्ठ २७०]

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संबंधित प्रश्न

State the features of 'Formal Organisation'.


Differentiate between formal and informal organization on the basis of the following:

Authority


Differentiate between formal and informal organization on the basis of the following:

Flow of communication


Differentiate between formal and informal organization on the basis of the following:

Nature


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?


Neha runs a factory wherein she manufactures shoes. The business has been doing well and she intends to expand by  diversifying into leather bags as well as western formal wear  thereby making her company a complete provider of corporate  wear. This will enable her to market her business unit as the  one stop for working women. Which type of structure would  you recommend for her expanded organisation and why?


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.


In which organisation structure do we find “group norms”?


A network of social relationships that arises spontaneously due to interaction at work is called:


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


It refers to the number of subordinates that can be effectively managed by a superior:


Under this type of organisational structure, manpower is grouped on the basis of different products manufactured.


The form of organisation known for giving rise to rumours is called


In what way an informal structure would benefit the organization?


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


______ 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. 


Which statement is correct regarding division of work:


An organization structure is deliberately designed by the top management to facilitate smooth functioning of the organisation. Which of the following is not a feature of such a 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.

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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