Read the passage and answer the following questions.

Since its inception, ONGC has been instrumental in transforming the country’s limited upstream sector into a large viable playing field, with its activities spread throughout India and significantly in overseas territories. The 1990s had begun on a grim note for ONGC. It took almost a decade for the Corporation to sort things out in most uncertain of times. Among many problems, the Corporation was also suffering from the organizational atrophy. In order to survive ONGC sought help from Mc Kinsey. Mc Kinsey’s mandate was to evolve an organizational structure that was far more responsive to its business needs than that based on business groups. The ONGC system run by functional heads often meant delays exceeding a year in matters requiring urgent decisions on fields. Also, since responsibilities were shared at production platforms between different business groups, the system degenerated into wrangling over responsibilities. Similarly, group loyalties often took precedence over the requirements of tasks. But, most importantly, it was found that the performance evaluation criteria based on business group yardstick were completely at loggerheads with requirements on fields. Mc Kinsey recommended an asset-based approach with clearly defined responsibilities in its presentation titled ‘Organization Transformation Project’ Though Mc Kinsey recommendations were broadly accepted, coordination issues concerning commonly shared services needed to be sorted out. Finally, the first control over all service personnel working with asset teams was vested in asset managers, on grounds that being responsible for the performance of their strategic business units they must rightfully exercise control over all personnel working with them. Even procurement powers were devolved. Finally, a new structure made up of 14 assets and 11 centralized services was rolled out. 

As we know that type of structure adopted by an organization will vary with the nature and types of activities performed by an organization.

According to you, which of the following structure is designed by grouping similar kinds of jobs together?

Functional structure

The correct answer is option 1- Functional structure.

The type of structure adopted by an organization will vary with the nature and types of activities performed by an organization. The organizational structure can be classified under two categories which are as follows:

1. Functional structure 
2. Divisional structure

Functional structure: - Grouping of jobs of similar nature under functional and organizing these major functions as separate departments creates a functional structure. A functional structure is an organizational design that groups similar or related jobs together.

Divisional structure: - In a divisional structure, the organization structure comprises of separate business units or divisions. This is suitable for those enterprises which have more than one category of products to offer.