Answer the following question:
Aradhana and Gandharv are heads of two different departments in 'Yumco Ltd.' 'They are efficient managers and are able to motivate the employee of their respective departments to improve performance. However, their drive to excel in their own sphere of activity instead of giving emphasis on objectives of the enterprise has hindered the interaction between the departments that Aradhana and Gandharv are heading. Often there are inter-departmental conflicts and they have become incompatible. This has proved to be harmful in the fulfillment of the organisational objectives. The situation has deteriorated to such an extent that the CEO of 'Yumco Ltd.' has hired a consultant, Rashmi, to resolve the problem. After studying the situation closely, Rashmi found that the problem has arisen due to inflexibility and a narrow perspective on the part of both Aradhana and Gandharv. She is of the view that this situation is a result of the type of organisational structure 'Yumco Ltd.’ has adopted.
From the above information, identify the organisational structure adopted by ‘Yumco Ltd.’ and state any three advantages of the structure so identified.
The organisational structure adopted by ‘Yumco Ltd.’ is Functional Structure.
The three advantages of this structure are:
- Reduced overlapping of work and better managerial efficiency: As work is clearly divided in different departments, the chances of overlapping or duplication of work is minimised. Also, a functional structure enables controlling and monitoring in a better manner, thereby enhancing managerial efficiency.
- Better training of employees: The focus of the employees in each department is only on a limited set of skills and specialties. This makes the training process much easier.
- Appropriate attention to various functions: Under a functional structure, various functions are grouped in different departments, and each of the departments specialises in its own specific functions. This ensures that every function gets adequate attention.
Yumco Ltd. has adopted the functional organisational structure.
Three advantages of the functional organisational structure:
- Occupational specialisation: Activities of similar nature are grouped together in departments. Employees perform the same functions repeatedly. Thus, it leads to occupational specialisation.
- Easy training: It is easy to train employees as the focus is on a limited range of skills.
- Better control and coordination: There is better control and coordination within a department as similar tasks are performed within the department.
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