Which of the following is true in the co

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Target Exam

CUET

Subject

Business Studies

Chapter

Organising

Question:

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

Options:

There is occupational specialisation in functional structure.

There is product specialisation in divisional structure.

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 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.