Practicing Success

Register
Start Free Mocks
CUETMOCK

Ace Your

CUET Preparation Today

Start Free Mocks
Home Questions 7C6P8PEVBJ
Target Exam

CUET

Subject

Business Studies

Chapter

Organising

Question:

Which of the following is true in the context of organising function of management?

Options:

Managerial development is possible in divisional structure because there is autonomy as well as the chance to perform multiple functions which helps in managerial development.

Managerial development is difficult in functional structure because each functional manager has to report to the top management.

Both 1 and 2

None of the above

Correct Answer:

Both 1 and 2

Explanation:

The correct answer is option 3- Both 1 and 2

Both the statements are true in the context of organizing function of management.

Comparative view: Functional and Divisional Structure

S  No

Basis

Functional Structure                       

Divisional Structure

1

Formation

Formation is based on functions

Formation is based on product lines and is supported by functions.

2

Specialisation

Functional specialisation.

Product specialisation.

3

Responsibility

Difficult to fix on a department.

Easy to fix responsiblity for performance

4

Managerial Development

Difficult, as each functional manager has to report to the top management.

 Easier, autonomy as well as the chance to perform multiple functions helps in managerial development.

5

Cost

Functions are not duplicated hence economical.

Duplication of resources in various departments, hence costly.

6

Coordination

Difficult for a multi-product company.

Easy, because all functions related to a particular product are integrated in one department.

 

CUET Questions