Advertisements
Advertisements
Questions
What is meant by the divisional structure of an organisation?
Give the meaning of 'divisional structure' of organising
Give the meaning of 'Divisional Structure of an organisation' with the help of a diagram
Explain the concept of 'Divisional Structure'.
What is meant by divisional organisation?
Advertisements
Solution 1
Divisional structure refers to an organisational structure wherein various diversified business activities of an organisation are grouped in different divisions. Each division is headed by a divisional manager who is responsible for the performance of that division. Further, under each division, multiple functions are performed such as production, sales and marketing. In other words, under each division, there is a functional structure.
This can be depicted with the help of an example. Suppose an organisation deals in the manufacturing of four products, namely footwear, garments, jewellery and leather accessories. Accordingly, there are four divisions, each of which reports to the Managing Director. Further, under each division, there are four departments—production, sales, marketing and advertising.
Solution 2
Divisional structure refers to an organisational structure wherein various diversified business activities of an organisation are grouped in different divisions. Each division is headed by a divisional manager who is responsible for the performance of that division. Further, under each division, multiple functions are performed such as production, sales and marketing. In other words, under each division, there is a functional structure.
The following diagram depicts the divisional structure of the organisation.
APPEARS IN
RELATED QUESTIONS
Name the type of 'organisational structure' which promotes efficiency in utilisation of manpower.
'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.
'My Car Ltd.' started earning huge profit. Another competeting company asked its production manager 'Arvind' to investigate the reasons of earning huge profits by 'My Car Ltd.'
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.
a. Identify the type of organisation which permits the flow of communication in all the directions in 'My Car Ltd.'
b. Also state an advantage of the type of organisation identified in part (a) above.
c. State any two values which 'My Car Ltd.' wants to communicate to the society.
‘Panda Trucks Ltd.’ decided to set-up its new truck manufacturing factory in the backward area of Bihar where very less job opportunities were available. People of that area welcomed this effort of ‘Panda Trucks Ltd.’. To attract people to work in its factory it also decided to provide many other facilities like school, hospital, market etc. in the factory premises.
‘Panda Trucks Ltd.’ started earning huge profits. Another competiting company asked its production manager ‘Sanjay’ to investigate the reasons of earning huge profits by ‘Panda Trucks Ltd’. Sanjay found out that in both the companies there was systematic co-ordination among the various activities to achieve organizational goals. Every employee knew who was responsible and accountable to whom. The only difference was that in his
organization communication took place only through the scalar chain, whereas ‘Panda Trucks 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 feedback.
a. Identify the type of organization which permits ‘Panda Trucks Ltd.’ the flow of communication in all the directions.
b. State an advantage of the type of organization identified in (a) above.
c. State any two values which ‘Panda Trucks Ltd.’ wanted to communicate to the society.
Differentiate between formal and informal organisations on the basis of origin
Differentiate between formal and informal organisations on the basis of the flow of communication.
Differentiate between formal and informal organization on the basis of the following:
Meaning
Differentiate between formal and informal organization on the following basis:
Behaviour
The differential between 'Functional and 'Divisional' structure of organising on the basis of the following:
Meaning
A differential between 'Functional and 'Divisional' structure of organising on the basis of the following:
Specialisation
State any two circumstances under which the functional structure will prove to be an appropriate choice.
Span of management refers to ____________.
Under this type of organisational structure, manpower is grouped on the basis of different products manufactured.
Grouping of activities on the basis of functions is a part of
What are the benefits of divisional structure?
______ is suitable for multi-product companies focusing on 'differentiated products'.
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?
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 gives shape to the organisation structure:
