Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Organising

Question:

'It promotes control and coordination within a department because of similarity in the tasks being performed.'

Whose feature is highlighted in the above statement?

Options:

Formal Organisation

Informal Organisation

Functional organisation

Divisional organisation

Correct Answer:

Functional organisation

Explanation:

The correct answer is option 3- Functional organisation.

Grouping of jobs of similar nature under functional and organising these major functions as separate departments creates a functional structure. All departments report to a coordinating head. A functional structure is an organisational design that groups similar or related jobs together. The functional structure has many advantages to offer. Important among them are as follows:

(a) A functional structure leads to occupational specialisation since emphasis is placed on specific functions. This promotes efficiency in utilisation of manpower as employees perform similar taskswithin a department and are able to improve performance.

(b) It promotes control and coordination within a department because of similarity in the tasks being performed.

(c) It helps in increasing managerial and operational efficiency and this results in increased profit.

(d) It leads to minimal duplication of effort which results in economies of scale and this lowers cost.

(e) It makes training of employees easier as the focus is only on a limited range of skills.

(f) It ensures that different functions get due attention.