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Questions
State it's any two advantages of the functional structure
Explain the advantages of Functional Structure.
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Solution 1
Advantages of functional structure:
i. Efficiency and Specialisation: Under a functional structure, each department can specialise in their respective functions as the activities of a similar nature are grouped together in departments.
ii. Promotes Coordination: Functional structure promotes control and coordination within the departments as similar tasks are being performed within a department.
Solution 2
The advantages of functional structure are as follows:
- Occupational specialisation: Employees in a functional structure carry out designated duties within a department. This kind of specialisation aids in performance improvement and efficiency promotion.
- Minimum duplication: Duplication of work is avoided leading to reduction in costs.
- Internal control: Due to similarity of tasks, control and coordination within a department become easier.
- Easier training: Training of employees becomes easier because every employee requires limited skills.
- Due attention: Functional structure ensures that different functions get due attention.
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| Column I | Column II | ||
| (1) | Organisation Structure | (i) | Grouping activities on the basis of products |
| (2) | Functional Structure | (ii) | Framework within which managerial and operating tasks are performed. |
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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.
| 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.
