Match list I with list II

Choose the correct answer from the options given below:

(A)-(IV), (B)-(I), (C)-(II), (D)-(III)

The correct answer is option 1- (A)-(IV), (B)-(I), (C)-(II), (D)-(III).

* Departmentalisation- Grouping of similar activities. Once work has been divided into small and manageable activities then those activities which are similar in nature are grouped together. Such sets facilitate specialisation. This grouping process is called departmentalisation. Departments can be created using several criteria as a basis. Examples of some of the most popularly used basis are territory (north, south, west, etc.) and products (appliances, clothes, cosmetics etc).

* Functional structure- Leads to occupational specialisation. Functional structure groups activities on the basis of functions. The advantages of such a structure are functional specialisation, better control, managerial efficiency and ease in training employees. A functional structure leads to occupational specialisation since emphasis is placed on specific functions. This promotes efficiency in utilisation of manpower as employees perform similar tasks within a department and are able to improve performance. The disadvantages are functional empires, conflict of interest, inflexibility, and restriction in managerial development. It promotes functional specialisation since each department has to perform a specific function. Employees perform similar tasks within a department which improves their efficiency and they are able to gain specialisation.

* Divisional structure- Leads to product specialisation. Divisional structure groups activities on the basis of products. The advantages are integration, product specialisation, greater accountability, flexibility, better coordination and more initiative. The disadvantages are departmental conflicts, costly process, ignoring of organisational interests, increase in requirements of general managers. The divisional head gains experience in all functions related to a particular product. Product specialisation helps in development of varied skills and prepares employee for higher position.

* Informal organisation- Network of social relationship. It arises out of interaction amongst people at work. It refers to network of social relations, which emerges on its own due to formal roles and relationships among people. Its advantages are speed, fulfillment of social needs, fills inadequacies of formal structure. Its disadvantages are disruptive force, resistance to change and priority to group interests.