Match the following.

Choose the correct answer farm the options given below.

A-III, B-IV, C-II, D-I

The correct answer is option 1- A-III, B-IV, C-II, D-I.

* Product specialization- 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.

* All decision making authority is kept with top level- Centralisation. An organisation is centralised when decision-making authority is retained by higher management levels whereas it is decentralised when such authority is delegated. Complete centralisation would imply concentration of all decision making functions at the apex of the management hierarchy. Such a scenario would obviate the need for a management hierarchy

* Arises out of personal qualities- Informal. Interaction among people at work gives rise to a ‘network of social relationships among employees’ called the informal organisation. Informal organisation emerges from within the formal organisation when people interact beyond their officially defined roles. When people have frequent contacts they cannot be forced into a rigid formal structure. Rather, based on their interaction and friendship they tend to form groups which show conformity in terms of interest. An informal organisation originates from within the formal organisation as a result of personal interaction among employees.

* Number of subordinates that can be managed by a superior- Span of management. The span of management, to a large extent gives shape to the organizational structure. Span of management refers to the number of subordinates that can be effectively managed by a superior. This determines the levels of management in the structure. A proper organization structure is essential to ensure a smooth flow of communication and better control over the operations of a business enterprise.