In an automobile manufacturing concern, division of work into key functions will include production, purchase, marketing, accounts and personnel. These departments may be further divided into sections. This will help the entity by:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Promoting control and coordination within a department because of similarity in the tasks being performed.
Dividing the work into production, purchase, marketing, accounts and personnel is a functional structure: jobs are grouped by the function they perform.
Option (1) Creating conflict of interests because the interests of two or more departments may not be compatible. — Incorrect. This is a disadvantage of a functional structure, not a help to the firm.
Option (2) Placing less emphasis on overall enterprise objectives than the objectives pursued by a functional head. — Incorrect. Also a disadvantage. Each head may chase the goals of his own department and lose sight of the goals of the whole firm.
Option (3) Leading to problems in coordination as information has to be exchanged across functionally differentiated departments. — Incorrect. Another disadvantage. Coordination is easy inside a department but hard between departments.
Option (4) Promoting control and coordination within a department because of similarity in the tasks being performed. — Correct. All the people in a department do similar work, so the head can supervise them and fit their work together easily. This is an advantage of the functional structure.
NCERT (2026-27 Edition): “Functional structure … Advantages: The functional structure has many advantages to offer. Important among them are as follows: |