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Home Questions WMP6ANYZFD
Target Exam

CUET

Subject

Business Studies

Chapter

Organising

Question:

Which of the following is true in the context of organising function of management?

Options:

Coordination is difficult in functional structure in multi product companies.

Coordination is difficult in divisional structure in multi product companies because all functions related to a particular product are integrated in one department.

Both 1 and 2

None of the above

Correct Answer:

Coordination is difficult in functional structure in multi product companies.

Explanation:

The correct answer is option 1- Coordination is difficult in functional structure in multi product companies.

Comparative view: Functional and Divisional Structure

S No

Basis

Functional Structure

Divisional Structure

1

Formation

Formation is based on functions

Formation is based on product lines and is supported by functions.

2

Specialisation

Functional specialisation.

Product specialisation.

3

Responsibility

Difficult to fix on a department.

Easy to fix responsiblity for performance

4

Managerial Development

Difficult, as each functional manager has to report to the top management.

Easier, autonomy as well as the chance to perform multiple functions helps in managerial development.

5

Cost

Functions are not duplicated hence economical.

Duplication of resources in various departments, hence costly.

6

Coordination

Difficult for a multi-product company.

Easy, because all functions related to a particular product are integrated in one department.

 

CUET Questions