Business StudiesOrganising

Coordination is difficult in multiple product companies in which of t…

Coordination is difficult in multiple product companies in which of the following structures?

Answer & explanation

Correct answer: option 1

The correct answer is option 1- Functional Structure.

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.

Coordination is difficult in multiple product companies in which of the following structures?

Answer & explanation

Correct answer: option 1

The correct answer is option 1- Functional Structure.

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.