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प्रश्न
How is a functional structure different from a divisional structure?
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उत्तर
The following points highlight the difference between a functional structure and a divisional structure.
|
Basis of Difference |
Functional structure |
Divisional structure |
|
Creation |
These are created on the basis of functions. |
These are created on the basis of product-lines along with the functions. |
|
Costs |
It is economical as duplication of work is minimised. |
It is costly as there is higher rate of duplication of work and resources between various departments. |
|
Decision Making |
Decision making is centralised as the decisions are taken by the coordinating head for various departments. |
Decision making is decentralised as each division of the product line have their own decision making authority. |
|
Duplication of work |
Due to functional specialisation overlapping of work is minimised. |
Due to each product department having the same functions, overlapping of work is increased. |
|
Suitability |
More suitable for companies who focuses on 'operational specialisation'. |
More suitable for multi-product companies focussing on 'differentiated products'. |
|
Functional Hierarchy |
Horizontal functional hierarchy is formed while the departments are devised on the basis of key operations. |
Vertical functional hierarchy is formed while devising the departments on the basis of product-line categories. |
|
Management |
Management is difficult as each work has to report to a coordinating head at the top level of management. |
Management is easier as different line of department is formed for each product. |
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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
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Authority
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Managerial development
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Which structure of organisation is helpful in locating the inefficient employees?
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Span of management refers to ____________.
Uranus Limited is a company dealing in metal products. The work is mainly divided into functions including production, purchase, marketing, accounts and personnel. Identify the type of organisational structure followed by the organisation.
Identify the type of organisational structure which facilitates occupational specialisation.
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Which of the following are a few prominent advantages of a divisional structure?
In what way an informal structure would benefit the organization?
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. |
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Which statement is correct regarding division of work:
Identify the type of organization structure depicted in the above diagram:
| 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.
