Advertisements
Advertisements
Question
|
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.
Advertisements
Solution
- The organisational structure adopted by Diligent Developers is functional structure. Functional structure is an organisational design that groups similar or related jobs together.
-
- Benefits of functional structure:
- It leads to occupational specialization since emphasis is placed on specific functions.This promotes efficiency in utilization of manpower as employees perform similar tasks within a department and are able to improve performance.
- It promotes control and coordination within a department because of similarity in the tasks being performed.
- Limitations of functional structure:
- A functional structure places less emphasis on overall enterprise objectives than the objectives pursued by a functional head. Such practices may lead to functional empires wherein the importance of a particular function may be overemphasised. Pursuing departmental interests at the cost of organisational interests can also hinder the interaction between two or more departments.
- It may lead to problems in coordination as information has to be exchanged across functionally differentiated departments.
- Benefits of functional structure:
APPEARS IN
RELATED QUESTIONS
Name the type of organisational structure which promotes flexibility and initiative.
'My Car Ltd.' decided to set-up its new car manufacturing factory in the backward area of West Bengal where very less job opportunities were available. People of that area welcomed this effort of 'My Car Ltd.' The company also decided to provide facilities like school, hospital, market etc. in the factory premises so that the people are attracted to join the factory as workers.
'My Car Ltd.' started earning huge profit. Another competeting company asked its production manager 'Arvind' to investigate the reasons of earning huge profits by 'My Car Ltd.'
Arvind found that in both the companies there was systematic co-ordination 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, where as 'My Car 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 feed-back.
a. Identify the type of organisation which permits the flow of communication in all the directions in 'My Car Ltd.'
b. Also state an advantage of the type of organisation identified in part (a) above.
c. State any two values which 'My Car Ltd.' wants to communicate to the society.
Name the organizational structure which helps in increasing managerial and operational efficiency.
Differentiate between formal and informal organisations on the basis of authority
Differentiate between formal and informal organization on the basis of the following:
Meaning
The differential between 'Functional and 'Divisional' structure of organising on the basis of the following:
Meaning
What does the term ‘Span of management’ refer to?
Write five features of an informal business organisation.
Differentiate between formal and informal organisations on the basis of
- origin,
- authority, and
- flow of communication.
Which structure of organisation is helpful in locating the inefficient employees?
Which of the following is not the disadvantage of the formal organisation?
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.
Which of the following does not follow the scalar chain?
Grouping of activities on the basis of product lines is a part of
What are the benefits 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 of the following is true regarding Organisational Structure?
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.
What will be the result of Situation 4?
