Business Studies

Six Mark Question:
A company is manufacturing Televisions, Refrigerators, Air-conditioners, Washing' machines and Gas stoves using different productive resources and is at the threshold of growth, requiring more employees.
Suggest a suitable organisational structure for this company giving reason in support of your answer. Also explain any three advantages and two limitations of this structure of organising.


SOLUTION
Divisional structure Under the divisional structure an organisation is divided into different divisions or units on the basis of products or geographical area.

Advantages of divisional structure are:
Decisions are taken much faster in divisional structure.
It facilitates expansion and growth as new divisions can be added without interrupting the existing operations.
It leads to specialisation of physical facilities and human talent.

Disadvantages of divisional structure are:
There is a duplication of physical facilities and functions.
It suffers from the under utillisation of plan capacity.
Conflict may arise between different divisions on allocation of funds and other resources.
View Full Answer

Its FREE, you're just one step away

Create your Digital Resume For FREE on your name's sub domain "yourname.wcard.io". Register Here!


Subjective Medium Published on 18th 09, 2020
Next Question
Questions 203525
Subjects 9
Chapters 126
Enrolled Students 127
Enroll Now For FREE

Realted Questions

Q1 Single Correct Medium
Organizational plans can be 
  • A. Stabilized
  • B. Controlled
  • C. Expedited
  • D. All of the above

Asked in: Business Studies - Organising


1 Verified Answer | Published on 18th 09, 2020

View Answer
Q2 Subjective Medium
Answer the following question in a sentence or a word.
Give the meaning of formal organisation.

Asked in: Business Studies - Organising


1 Verified Answer | Published on 18th 09, 2020

View Answer
Q3 Single Correct Medium
Industrial Dispute Act, 1947 provides the following industrial relations machinery resolution of conflicts: (Tick mark the wrong one):
  • A. Negotiation
  • B. Conciliation
  • C. Arbitration
  • D. Meditation

Asked in: Business Studies - Organising


1 Verified Answer | Published on 18th 09, 2020

View Answer
Q4 Single Correct Medium
The traditional view holds that managers should not directly supervise more than _________ subordinates.
  • A. seven or eight
  • B. five or six
  • C. eleven or twelve
  • D. nine or ten

Asked in: Business Studies - Organising


1 Verified Answer | Published on 18th 09, 2020

View Answer
Q5 Subjective Medium
Mr. Sandhu- worked as a manager in a company manufacturing stationery items for 10 years. Later he thought of starting his own business as he acquired the skills and expertise in past years. He started his own venture. He divided the organisation into six major departments- Production, Purchase, Marketing, Legal, Human resource and Finance. After a month, he called upon the meeting of all the departmental heads in his office and told the production marketing and finance department managers to be very vigilant as their departments are critical to the success of the business. Short comings in Purchase, Personnel or Legal department would not affect much the success of business. Therefore, Mr. Sandhu determined deviation tolerance limits for the critical departments.
1. Identify the two functions of management referred above.
2. Describe the relevant concept of the identified functions. 

Asked in: Business Studies - Organising


1 Verified Answer | Published on 18th 09, 2020

View Answer