In an electrical goods manufacturing company, there are four main activities– production, marketing, finance and personnel. The general manager is planning to structure the organisation. Which type of organisation structure should he adopt and why? Give two reasons.
Functional organisational structure is most suitable for such type of company. Following are the reasons 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.
