Advertisements
Advertisements
Questions
State it's any two advantages of the functional structure
Explain the advantages of Functional Structure.
Advertisements
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.
RELATED QUESTIONS
What is meant by 'functional structure' of an organisation?
State its any two advantages of the divisional structure
Differentiate between formal and informal organization on the following basis:
Behaviour
A differential between 'Functional and 'Divisional' structure of organising on the basis of the following:
Specialisation
What is a divisional structure? Discuss its advantages and limitations.
A company, which manufactures a popular brand of toys, has been enjoying good market reputation. It has a functional organisational structure with separate departments for Production, Marketing, Finance, Human Resources and Research and Development. Lately to use its brand name and also to cash on to new business opportunities it is thinking to diversify into manufacture of new range of electronic toys for which a new market is emerging. Which organisation structure should be adopted in this situation? Give concrete reasons with regard to benefits the company will derive from the steps it should take.
Write a short note on: Formal organisation.
Which organisation structure is consciously or deliberately established?
It refers to the number of subordinates that can be effectively managed by a superior:
'Saarthi', the name has been associated with the manufacturing and sale of Fashion products since 1960, when Kapil Saarthi opened his first retail fashion clothing outlet in Ahmedabad. Sarthi Cosmetics was incorporated in India in 1940, and became a member of the S & M family of companies in 1959. Sarthi Perfumes began operations in Gujarat in an existing administrative S&M facility in 1985. An important difference between S&M and most other companies is that instead of operating as one large corporation it operates as 180 smaller companies each focused on a specific product and area, implying selective dispersal of authority, recognising the decision makers need four autonomy, as decision making authority is pushed down the chain of command. It enables the company to maintain short lines of communication with customers and employees, and accelerate the development of talent.
As “The decision making authority is pushed down the chain of command” at S&M enterprises, it provides the benefit of quick decision making to the organisation because ______.
Span of management can be classified into which of the following categories.
Which of the following factors are of informal organisation that support the working of formal organization?
Yummy Foods Ltd. has its registered office in Lucknow, manufacturing unit in Kanpur and marketing department in Chandigarh. ______ type of organisational structure should be adopted by the company to achieve its objectives.
Which of the following is true regarding Organisational Structure?
______ is the process of dividing work into manageable activities and then grouping the activities which are similar in nature.
Read the following text and answer the questions given below:
'Pappu Sweets Makers' is a sweets making company which has turnover in crores. In order to manage the work in the organisation, the departments have been created on the basis of functions. Examine the following situations of this organisation and give answers accordingly :
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.
Situation 2: There are similarities in the tasks performed within the same department.
Situation 3: The profit is increasing month by month due to the success of this structure of the organisation.
Situation 4: There has been minimum duplication of efforts as the same department is taking care of single function.
Why do you think the profit is increasing as given in Situation 3?
Read the following text and answer the questions given below:
'Pappu Sweets Makers' is a sweets making company which has turnover in crores. In order to manage the work in the organisation, the departments have been created on the basis of functions. Examine the following situations of this organisation and give answers accordingly :
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.
Situation 2: There are similarities in the tasks performed within the same department.
Situation 3: The profit is increasing month by month due to the success of this structure of the organisation.
Situation 4: There has been minimum duplication of efforts as the same department is taking care of single function.
What will be the result of Situation 4?
Which of the following is an advantage of functional structure :
| 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.
