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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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| Column I | Column II | ||
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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. |
- 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.
