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प्रश्न
What is a divisional structure? Discuss its advantages and limitations.
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उत्तर
A divisional structure in an organisation comprises of separate business units and division. Each unit has a divisional manager who has the authority of the unit and is responsible for the performances of the unit.
The advantages of divisional structure are as follows:-
• Product Specialisation helps in the development of the skills as it gains experience from all forms regarding that product. This helps in achieving high aims with it.
• Divisional heads are accountable for profits, as revenues, cost related to different departments can be easily identified and assigned to them. This provides a proper basis for management. It also takes responsibility in poor performances and takes actions accordingly.
• It promotes flexibility and initiative as each division functions as an autonomous unit and it leads to further decision making.
• It provides expansion and growth as new divisions can be added without interrupting the existing ones by assigning new head and staff for the new division.
Limitations of divisional structure are as follows:-
• It may lead to a conflict because of formation of similar divisions due to different policies and different allocation of funds and each division will try to maximise its profit at the cost of the other.
• Creation of similar type of divisions leads to increase in the expenditure as there may be duplication of activities across products.
• It grants the manager the supreme authority to exercise his controls related to a particular division. In course of time such a manager may become selfish and see his own interests ignoring the organisations interest.
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संबंधित प्रश्न
Differentiate between formal and informal organisations on the basis of authority
State any two disadvantages Informal Organisation.
Write five features of an informal business organisation.
Which organisation structure is consciously or deliberately established?
Which organisation structure is based on rules and procedures?
Grouping of activities on the basis of product lines is a part of ______.
The employees of ABC co. have formed a Dramatics club for their recreation. Name the type of organisation formed by the and state one of the features of such an organisation.
Span of management refers to
Grouping of activities on the basis of functions is a part of
______ is suitable for companies who focuses on operational specialization.
______ 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 type of organisational structures is the most suitable for those business enterprises where a large variety of products are manufactured?
Which of the following gives shape to the organisation 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 type of organisational structure is the most suitable when the size of the organisation is large and is producing one line of product?
______ is the process of dividing work into manageable activities and then grouping the activities which are similar in nature.
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?
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.
Why do you think the profit is increasing as given in Situation 3?
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?
