Business Studies

Six Mark Question:
What is meant by 'Divisional Structure' of an organisation? For which type of business enterprises is this structure most suitable? State any four advantages of this form of organisational structure. 


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

Advantages of a 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 specialization of physical facilities and human talent.

Disadvantages of a divisional structure are:
There is a duplication of physical facilities and functions.
It suffers from the under-utilization of plant capacity.
Conflict may arise between different divisions on an 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
Responsibility can be properly discharged by subordinate, if authority is properly delegated to him.
  • A. False
  • B. Partly true
  • C. None of above
  • D. True

Asked in: Business Studies - Organising


1 Verified Answer | Published on 18th 09, 2020

View Answer
Q2 Subjective Medium
Short answer type of question:
Define 'organising'.

Asked in: Business Studies - Organising


1 Verified Answer | Published on 18th 09, 2020

View Answer
Q3 Single Correct Medium
Invariably the problem of organizing arises only when _____________.
  • A. when a small firm is to be managed.
  • B. organising is never a problem.
  • C. it is an irrelevant statement.
  • D. when group efforts are required.

Asked in: Business Studies - Organising


1 Verified Answer | Published on 18th 09, 2020

View Answer
Q4 Single Correct Medium
Ethical values are derived from ___________.
  • A. Corporate objectives
  • B. Organisational culture
  • C. The Bible, the Koran and the Geeta
  • D. Corporative philosophy

Asked in: Business Studies - Organising


1 Verified Answer | Published on 18th 09, 2020

View Answer
Q5 Passage Medium
As a production supervisor Amit decided on Friday afternoon how many units of output his employees will be able to produce and on which days certain products will be run in his department.He also decided which of his employees are going to be responsible for operating which machine within the department next week as his employees are multi-skilled assemblers.On Monday he inform his employees whom he has assigned to which machines by handling out assignment sheets and informs the employees that the schedule is going to be difficult due to the increased number of units.He goes on to tell them that he is sure they can fulfill the schedule because they are such good and skilled employees.Each day during the week he checks the amount of output that the employees have competed and the number of units that have been scraped.

Asked in: Business Studies - Organising


1 Verified Answer | Published on 18th 09, 2020

View Answer