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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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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.
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