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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.
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उत्तर १
Advantages of divisional structure:
- 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.
- Growth: Divisional structure enables easy growth and expansion of the organisation. This is because new divisions can be easily added without affecting existing divisions.
- 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
- 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.
उत्तर २
The divisional structure offers the following advantages:
- 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.
- Accountability: Because expenses and resources are easily defined and allocated to divisions, performance can be measured and accountability can be established.
- Flexibility: Every section operates independently. This encourages initiative, adaptability, and prompt decision-making.
- 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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संबंधित प्रश्न
Differentiate between formal and informal organisations on the basis of the flow of communication.
State any three limitations of divisional structure of an organisation.
State any two advantages of Formal Organisation
The differential between 'Functional and 'Divisional' structure of organising on the basis of the
following:
Formation
Draw a diagram depicting a functional structure.
Differentiate between the functional organization and divisional organization
Which type of organisational structure will you suggest for a firm which has diversified activities and operations requiring a high degree of specialisation?
'Saarthi', the name has been associated with the manufacturing and sale of Fashion products since 1960, when Kapil Saarthi opened his first retail fashion clothing outlet in Ahmedabad. Sarthi Cosmetics was incorporated in India in 1940, and became a member of the S & M family of companies in 1959. Sarthi Perfumes began operations in Gujarat in an existing administrative S&M facility in 1985. An important difference between S&M and most other companies is that instead of operating as one large corporation it operates as 180 smaller companies each focused on a specific product and area, implying selective dispersal of authority, recognising the decision makers need four autonomy, as decision making authority is pushed down the chain of command. It enables the company to maintain short lines of communication with customers and employees, and accelerate the development of talent.
As “The decision making authority is pushed down the chain of command” at S&M enterprises, it provides the benefit of quick decision making to the organisation because ______.
Which of the following points highlight the suitability of functional structure?
In what way an informal structure would benefit the organization?
______ is suitable for companies who focuses on operational specialization.
______ is suitable for multi-product companies focusing on 'differentiated products'.
Which type of organisational structures is the most suitable when the size of the organisation is large and is producing one line of product?
Read the following text and answer the questions given below:
'Pappu Sweets Makers' is a sweets making company which has turnover in crores. In order to manage the work in the organisation, the departments have been created on the basis of functions. Examine the following situations of this organisation and give answers accordingly :
Situation 1: It is expected that employees who are performing similar tasks work under the same department. So the company now has HR, Marketing and Finance departments. The division is based on specific functions.
Situation 2: There are similarities in the tasks performed within the same department.
Situation 3: The profit is increasing month by month due to the success of this structure of the organisation.
Situation 4: There has been minimum duplication of efforts as the same department is taking care of single function.
Which type of organisation structure is discussed in the above case?
The organisational structure and the composition of the board of directors, are one of the internal factors of micro environment of a business organisation.
| 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.
Recession is an 'inherent constraint' in almost all manufacturing organisations.
What may happen to enterprises that do not change their structure?
What is span of management?
