A Fashion Design House has the following main jobs:
(i) Manufacturing (ii) Finance
(iii) Marketing (iv) Personnel
(v) Research and Development
Which organisational structure will you prefer for this type of a company and why?
For this company functional organisation structure will be more appropriate. It has the following advantages:
(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.