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 type of organizational structure advocated by the HR Manager of ABC Ltd. is Functional.

The HR Manager suggests that the company should "specify the relationship between people, work, and resources" and proposes organizing based on similar functions performed. This aligns with a functional organizational structure, where the company is divided into departments based on specific functions (e.g., marketing, finance, HR, production, etc.), and each function is managed by a specialized team. This structure is designed to improve efficiency by grouping employees based on their expertise and the tasks they perform.