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Question
Identify the type of organization structure depicted in the above diagram:
Options
Divisional structure
Functional structure
Informal structure
Both Informal and Functional structure
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Solution
Divisional structure
Explanation:
Divisional organisation structure is the split of the entire company into tiny divisions or business units based on the main manufactured goods (such as metal, plastic, cosmetics, etc.).
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'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.
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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.
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Meaning
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