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प्रश्न
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.
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उत्तर
A major change that needs to be adopted is a move towards decentralisation. As the organisation is growing it cannot maintain complete centralisation. The employees must be given some authority and responsibility to ensure smooth and efficient functioning of the organisation. Moreover, it would enable quick decision making in the organisation.
Decentralisation would benefit the organisation in the following manner.
1. With decentralisation the lower level managers would get freedom and autonomy to take initiatives.
2. Decentralisation would help in developing managerial competence which would prove useful in the process of growth.
3. With decentralisation the decisions are taken quickly and in a timely manner. This is useful in finding solutions to the problems easily.
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संबंधित प्रश्न
Name the type of 'organisational structure' which promotes efficiency in utilisation of manpower.
Name the organizational structure which helps in increasing managerial and operational efficiency.
Differentiate between formal and informal organisations on the basis of origin
Differentiate between formal and informal organisation on the basis of origin.
What is meant by the divisional structure of an organisation?
State its any two advantages of the divisional structure
State any three features of 'Informal Organisation'.
State any two disadvantage functional structure of an organisation
A differential between 'Functional and 'Divisional' structure of organising on the basis of the following:
Specialisation
A differential between 'Functional and 'Divisional' structure of organising on the basis of the following:
Responsibility
Differentiate between formal and informal organisations on the basis of
- origin,
- authority, and
- flow of communication.
Span of management refers to ____________.
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Identify the type of organisational structure which facilitates occupational specialisation.
Identify the type of organisational structure which makes training of employees easier, as the focus is only on a limited range of skills.
Grouping of activities on the basis of product lines is a part of
In what way an informal structure would benefit the organization?
Which statement is correct regarding division of work:
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