Match List-I with List-II
| List-I | List-II |
| Structure | Advantage/Disadvantage |
| (A) Advantage of Functional Structure | (I) It facilitates expansion and growth |
| (B) Disadvantage of Divisional Structure | (II) It may lead to problems in coordination |
| (C) Disadvantage of Functional Structure | (III) It may lead to increase in costs since there may be a duplication |
| (D) Advantage of Divisional Structure | (IV) It leads to minimal duplication of effort |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → (A) - (IV), (B) - (III), (C) - (II), (D) - (I)
(A) Advantage of Functional Structure — this matches (IV) It leads to minimal duplication of effort. All work of one kind, such as all marketing, is done in one department. So the same job is not repeated in different parts of the organisation.
(B) Disadvantage of Divisional Structure — this matches (III) It may lead to increase in costs since there may be a duplication. Each division keeps its own set of functions: its own marketing, its own finance and so on. The same facilities are set up several times, so costs rise.
(C) Disadvantage of Functional Structure — this matches (II) It may lead to problems in coordination. Each department head works towards the goals of his own function. Linking all the departments becomes harder as the organisation grows.
(D) Advantage of Divisional Structure — this matches (I) It facilitates expansion and growth. A new division can be added for a new product without disturbing the divisions that already exist.
NCERT (2026-27 Edition): “Functional structure … (b) It may lead to problems in coordination as information has to be exchanged across functionally differentiated departments.” “(d) It leads to minimal duplication of effort which results in economies of scale and this lowers cost.” “Divisional Structure … (b) It may lead to increase in costs since there may be a duplication of activities across products. Providing each division with separate set of similar functions increases expenditure.” “(d) It facilitates expansion and growth as new divisions can be added without interrupting the existing operations by merely adding another divisional head and staff for the new product line.” |