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State its any two advantages of the divisional structure - Business Studies

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प्रश्न

State its any two advantages of the divisional structure

State its any four advantages of divisional structure

Discuss the advantages of Divisional Structure.

दीर्घउत्तर
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उत्तर १

Advantages of divisional structure:

  1. Flexibility and Initiative: Under the divisional structure, each division functions independently. The divisional heads have the authority to take their own decisions. This promotes flexibility and initiative in the organisation.
  2. Growth: Divisional structure enables easy growth and expansion of the organisation. This is because new divisions can be easily added without affecting existing divisions.
  3. Managerial Efficiency: Under the divisional structure, each division is headed by a division head. The division head performs multiple functions for the division. In this way, he gets multiple opportunities for new experience and development. It helps in developing his skills and knowledge
  4. Gauging Performance: Under the divisional structure, each division is responsible for its own profit and loss. In this way, the performance of each division of the organisation can be clearly evaluated, and so, necessary actions can be taken.
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उत्तर २

The divisional structure offers the following advantages:

  1. Executive development: Division leaders acquire expertise in every aspect of a certain product. They are better prepared for senior management roles by developing a variety of talents.
  2. Accountability: Because expenses and resources are easily defined and allocated to divisions, performance can be measured and accountability can be established.
  3. Flexibility: Every section operates independently. This encourages initiative, adaptability, and prompt decision-making.
  4. Expansion and growth: New divisions can be added as the business expands without affecting ongoing operations. Therefore, divisional organisation promotes growth and expansion.
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पाठ 9: Organising - QUESTION BANK [पृष्ठ २७५]

व्हिडिओ ट्यूटोरियलVIEW ALL [1]

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


Answer the following question:
Aradhana and Gandharv are heads of two different departments in 'Yumco Ltd.' 'They are efficient managers and are able to motivate the employee of their respective departments to improve performance. However, their drive to excel in their own sphere of activity instead of giving emphasis on objectives of the enterprise has hindered the interaction between the departments that Aradhana and Gandharv are heading. Often there are inter-departmental conflicts and they have become incompatible. This has proved to be harmful in the fulfillment of the organisational objectives. The situation has deteriorated to such an extent that the CEO of 'Yumco Ltd.' has hired a consultant, Rashmi, to resolve the problem. After studying the situation closely, Rashmi found that the problem has arisen due to inflexibility and a narrow perspective on the part of both Aradhana and Gandharv. She is of the view that this situation is a result of the type of organisational structure 'Yumco Ltd.’ has adopted.
From the above information, identify the organisational structure adopted by ‘Yumco Ltd.’ and state any three advantages of the structure so identified.


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

Origin


A differential between 'Functional and 'Divisional' structure of organising on the basis of the following:

Responsibility


A differential between 'Functional and 'Divisional' structure of organising on the basis of the following:

Cost involved


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?


Which organisation structure does not have duplication of work?


A tall structure has a ____________.


Span of management refers to ____________.


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


Identify the type of organisational structure which facilitates occupational specialisation.


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


______ 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. 


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.

Which of the following gives shape to the organisation structure?


Yummy Foods Ltd. has its registered office in Lucknow, manufacturing unit in Kanpur and marketing department in Chandigarh. ______ type of organisational structure should be adopted by the company to achieve its objectives.


Which of the following is true regarding Organisational Structure :


Which of the following is an advantage of functional structure :


______ organisations are formed spontaneously as a result of social interaction among employees in an organisation.


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