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Organizing

Question
CBSEENBS12003834

How is a functional structure disparate from a divisional structure?

Solution

Basis of Difference

Functional Structure

Divisional Structure

(i) Formation

On the basis of work.

On the basis of products.

(ii) Specialisation

Specialisation of job.

Specialisation of product.

(iii) Responsibility

It is cumbersome to ascertain
departmental responsibilities. (No
department will take responsibility for
adverse results.)

It is easier to ascertain divisional
responsibilities. (Divisional Manager
cannot shirk responsibility for adverse
results.)

(iv) Managerial Development

Department Manager is specialised in
doing one kind of job only. So limited
development takes place.

Divisional manager is versatile as he looks
after many varied jobs. So immense
development is possible.

(v) Cost

Since there is no duplication of jobs, cost
incurred is less.

Since there is duplication of jobs, cost
incurred is high.

(vi) Coordination

All departmental heads work as per their
discretion so it becomes difficult to
establish coordination.

Whole Division is headed by one
Divisional Head, who controls all the
divisional activities. So coordination is
implicitly established.

Some More Questions From Organizing Chapter

Aman, Avneesh and Amrish have decided to start a business of manufacturing toys. They identified the following main activities which they have to perform:

(i) Purchase of raw materials

(ii) Purchase of machinery

(iii) Production of toys

(iv) Arrangement of finance

(v) Sale of toys

(vi) Identifying the areas where they can sell their toys

(vii) Selection of employees

In order to facilitate the work they thought that four managers should be appointed to look after:

(a) Production (b) Finance

(c) Marketing (d) Personnel.

(1) Identify the function of management involved in the above mentioned para.

(2) Quote the lines from the above para which help you in identifying this function.

(3) State the steps followed in the process of this function of management.

“Organisation is the harmonious adjustment of specialised parts for the accomplishment of some common purpose or purposes”. In the light of this statement explain any four points of importance of organising.

“Organising is the process of defining and grouping the activities of the enterprise and establishing the authority relationship among them”. In the light of this statement explain the steps in the process of organising.

Define ‘Organising’ as a function of management.

Define ‘Organisation’ as a structure.

(Organisation is a machine of management). Comment.

How effective administration is possible through organisation?

‘Organisation is a mechanism of management’. What does this statement indicate?

How ‘effective administration’ is possible through organising?

What is the meaning of ‘Departmentalisation’ as a step of organising process?