Business StudiesOrganising

Which of the following is true in the context of organising function…

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

Answer & explanation

Correct answer: option 4

The correct answer is option 4- None of the above.

The cost involved in functional organisation structure is comparatively less as the functions are not repeated. Unlike, the divisional organisational structure wherein there is the repetition of resources, and so it is costly.

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.

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

Answer & explanation

Correct answer: option 4

The correct answer is option 4- None of the above.

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.