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Question
'Himalaya Ltd', is engaged in manufacturing of washing machines. The target of the organisation is to manufacture 500 washing machines a day. There is an occupational specialisation in the organisation which promotes the efficiency of employees. There is no duplication of efforts in such type of organisation structure.
Identify the type of organisation structure described above
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Solution
The type of organisational structure described in the given scenario is functional structure. A functional organisational structure is one wherein the activities of a similar nature are grouped together in departments, and all departments in turn report to a head.
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'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.
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A differential between 'Functional and 'Divisional' structure of organising on the basis of the following:
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What does the term ‘Span of management’ refer to?
Which of the following does not follow the scalar chain?
Identify the type of organisational structure which facilitates occupational specialisation.
Under this type of organisational structure, manpower is grouped on the basis of different products manufactured.
Which type of organisational structure will you suggest for a firm which has diversified activities and operations requiring a high degree of specialisation?
Grouping of activities on the basis of functions is a part of
Which of the following points highlight the suitability of functional structure?
______ is suitable for companies who focuses on operational specialization.
Which type of organisational structures is the most suitable for those business enterprises where a large variety of products are manufactured?
Which type of organisational structures is the most suitable when the size of the organisation is large and is producing one line of product?
Which of the following is true regarding Organisational Structure?
Which of the following is an advantage of functional structure :
