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'Himalaya Ltd', is Engaged in Manufacturing of Washing Machines. There is an Occupational Specialisation in the Organisation Which Promotes the Efficiency of Employees. Identify the Type of Organisation Structure Described Above - Business Studies

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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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2014-2015 (March) All India Set 2

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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.
  1. Identify and state the organisational structure adopted by the company.
  2. State two benefits and two limitations of the identified structure highlighted in the above case.

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  2. State two benefits and two limitations of the identified structure highlighted in the above case.

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