Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Organising

Question:

Read the following passage and answer the question.

On Monday, an urgent meeting was called by Administrative head of ABC Ltd. The company has been witnessing various problems such as wastages of resources, ambiguity in transfer of information and inefficient Administration. Thus organisational restructuring was need of the hour. The HR manager stated that "the company needs to specify relationship between people, work and resources." Thus suggest an organisational structure based on the similar functions performed. Whereas marketing manager is of the opinion that company should be structured based on product line of the company. The meeting went for an hour and adjourned for next Monday and both the managers were called with valid justification for their claims.

Which type of Organisational Structure is advocated by the marketing manager ?

Options:

Divisional

Informal

Formal

Functional

Correct Answer:

Divisional

Explanation:

The correct answer is option (1) : Divisional

The type of organizational structure advocated by the marketing manager is:

(1) Divisional

The marketing manager suggests that the company should be structured based on the product lines of the company, which is a characteristic of a divisional organizational structure.This structure involves dividing the organization into separate divisions or units, each responsible for a particular product or product line. Each division operates relatively independently, allowing for specialization and focus on specific products or markets.