Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Organising

Question:

Read the following passage and answer the question.

On Monday, an urgent meeting was called by Administrative head of ABC Ltd. The company has been witnessing various problems such as wastages of resources, ambiguity in transfer of information and inefficient Administration. Thus organisational restructuring was need of the hour. The HR manager stated that "the company needs to specify relationship between people, work and resources." Thus suggest an organisational structure based on the similar functions performed. Whereas marketing manager is of the opinion that company should be structured based on product line of the company. The meeting went for an hour and adjourned for next Monday and both the managers were called with valid justification for their claims.

Which type of organisational structure is advocated by the HR Manager of ABC Ltd.

Options:

Divisional

Formal

Functional

Informal

Correct Answer:

Functional

Explanation:

The correct answer is option (3) : Functional

The HR Manager of ABC Ltd is advocating for a functional organizational structure.

So, the correct answer is

(3) Functional

The line from the passage that reflects the HR Manager's perspective on organizational structure is:

"The company needs to specify the relationship between people, work, and resources. Thus suggest an organisational structure based on the similar functions performed. Whereas marketing manager is of the opinion that company should be structured based on product line of the company.