Aman Ltd. is manufacturing toys and has production, sales, purchase and finance departments. Which type of organisational structure would you suggest to them? State any three advantages of this type of organisational structure.
Functional organisational structure is most suitable for such type of company.
Advantages of Functional Organisation: Following are the main advantages of it:
(i) Benefits of Specialisation: The whole company is divided into many departments on the basis of major activities to be performed. Each department is headed by an expert manager. This results in more and better work being accomplished in much lesser time. Hence, the benefits of specialisation become available.
(ii) Coordination is Established: All the persons working within a department are specialists of their respective jobs. It makes the coordination easier at department level.
(iii) Managerial Efficiency is Increased: It helps in increasing managerial efficiency because of performing the same work once and again. Further, this results in increased profit.
