Question

‘Deccan Motors Ltd.’ is a renowned name in the automobile sector in India. It deals in both commercial vehicles like bus, truck and lorries, as well as passenger vehicles like cars, scooters, etc. It presently has a functional organisational structure. The Board of Directors have now decided to shift to divisional structure, with separate divisions for commercial vehicles and passenger vehicles.

Identify the benefit the company will get as a result of shifting to divisional structure:

पर्याय

• It will promote flexibility and initiative because each division will function as an autonomous unit.

• It will lead to minimal duplication of effort, which will result in economies of scale.

• It will make training of employees easier as the focus will be on limited range of skills.

• It will lead to occupational specialisation since emphasis will be placed on specific functions.

Answer 1

It will promote flexibility and initiative because each division will function as an autonomous unit.

Explanation:

A divisional structure groups all functions around product lines (commercial vs passenger vehicles), making each division self‑contained and giving its manager authority to act, thereby speeding decision‑making and fostering initiative and flexibility.