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Organizing

Question

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Give the meaning of ‘divisional structure’ of organizing. State its four advantages.

Solution

Divisional structure means division of the whole enterprise according to the major products to be manufactured by it. Its advantages are:

Development of divisional heads: The head of each division looks after all the functions connected with their product. Hence, it helps in the development of varied skills in a divisional head.
Quick decisionmaking: Every division is independent in itself. The divisional manager can take any decision regarding his division independently without consulting others.
Easy expansion: For every product, a separate division is opened. If a company wants to introduce a new product, it can be introduced easily without disturbing existing division.

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?

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