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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
Name the type of 'organisational structure' which promotes efficiency in utilisation of manpower.
What is meant by 'functional structure' of an organisation?
State its any two advantages of the divisional structure
State any two disadvantage functional structure of an organisation
Differentiate between formal and informal organisations on the basis of
- origin,
- authority, and
- flow of communication.
Which organisation structure is consciously or deliberately established?
It refers to the number of subordinates that can be effectively managed by a superior:
As the span of management increases in an organisation, the number of levels of management in the organisation:
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.
Which of the following is not true about formal organisation?
A network of social relationship that arise spontaneously due to interaction at work is called :
Which of the following does not follow the scalar chain?
Which of the following is a disadvantage of divisional structure?
______ 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. |
- 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.
What does span of management determine in the organisational structure?
