Anubha wants to start an edu-tech platform. She wants her business to have product specialisation, greater accountability, flexibility and better coordination. The kind of organisation structure which she would choose will be:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Divisional
Option (1) Functional — Incorrect. A functional structure groups jobs by function, such as production, marketing and finance. It gives specialisation and control, but coordination across functions is poor and it is not flexible.
Option (2) Centralised — Incorrect. Centralisation means keeping decisions at the top. It is not a type of organisation structure, and it would reduce flexibility.
Option (3) Divisional — Correct. A divisional structure groups activities by product. Each division has its own head, who is answerable for its results. Its advantages are the very ones Anubha wants: product specialisation, greater accountability, flexibility and better coordination.
Option (4) Informal — Incorrect. An informal organisation grows on its own out of friendships among employees. It is not a structure that a founder can choose.
NCERT (2026-27 Edition): “Divisional Structure … In a divisional structure, the organisation structure comprises of separate business units or divisions.” “…Advantages: The divisional structure offers many benefits. Prominent among these are as follows: “(b) Divisional heads are accountable for profits, as revenues and costs related to different departments can be easily identified and assigned to them. …” “(c) It promotes flexibility and initiative because each division functions as an autonomous unit which leads to faster decision making.” |