Read the following passage and answer the following questions.

Garg Chemist has branches all over the country. Recently, they changed how they make decisions. The lower-level managers can now make decisions on their own and trust their judgments. This change has really helped the company succeed. Employees are now handling projects on their own, gaining valuable experience that can help them move up in the company to more important roles in the future. The company believes that delegation is essential. Even before they started decentralizing, the company was doing well. Managers knew that by properly giving tasks to others, they could focus on more important things. This is how the company grew. Delegating also helped establish good relationships between managers and their teams, making reporting relationships clear. The company focuses on specialized products. In the future, managers will have plenty of opportunities to show their skills and grow in their roles.

Which structure is followed by Garg Chemicals?

Divisional structure

The correct answer is option 2- Divisional structure.

Garg Chemicals focuses on specialized products which is a feature of divisional structure. Divisional structure groups activities on the basis of products. The advantages are integration, product specialisation, greater accountability, flexibility, better coordination and more initiative. The disadvantages are departmental conflicts, costly process, ignoring of organisational interests, increase in requirements of general managers. The divisional head gains experience in all functions related to a particular product. Product specialisation helps in development of varied skills and prepares employee for higher position.