Grouping of the activities on the basis of Products is related to:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Divisional Organisation
Option (1) Functional Organisation — Incorrect. In a functional structure, jobs are grouped on the basis of functions such as production, marketing and finance, not products.
Option (2) Centralised Organisation — Incorrect. Centralised organisation is about keeping the decision-making power at the top. It is not a way of grouping activities.
Option (3) Decentralised Organisation — Incorrect. Decentralised organisation is about giving decision-making power at all levels. It is not a way of grouping activities.
Option (4) Divisional Organisation — Correct. In a divisional structure, manpower is grouped on the basis of different products manufactured. Each division handles one product line.
NCERT (2026-27 Edition): “Divisional Structure … In a divisional structure, the organisation structure comprises of separate business units or divisions.” “…Each unit has a divisional manager responsible for performance and who has authority over the unit. Generally, manpower is grouped on the basis of different products manufactured. …” |