Divisional Organisation Structure

Q.

What is the divisional structure? Discuss its advantages and limitations.

Q.

What are the elements of the product mix?

Q.

Grouping of activities on the basis of product lines is a part of:

1. Autonomous organisation

2. Divisional organisation

3. Functional Organisation

4. Delegated organisation

Q.

What are the steps in the process of organising?

Q.

Which organisational structure is suitable for a multi-product manufacturing company?

1. Functional

2. Divisional structure

3. Informal

4. None of these

Q.

Neha runs a factory wherein she manufactures shoes. The business has been doing well and she intends to expand by diversifying into leather bags as well as western formal wear thereby making her company a complete provider of corporate wear. This will enable her to market her business unit as the one stop for working women. Which type of structure would you recommend for her expanded organisation and why?

Q.

Rishitosh Mukherjee has recently joined AMV Ltd, a company manufacturing refrigerators. He found that his department was under-staffed and other departments were not cooperating with his department for smooth functioning of the organisation. Therefore, he ensured that his department has the required number of emplyees and its cooperation with other departments is improved.

(i) Identify the level at which Rishitosh Mukherjee was working.

(ii) Also state three more functions required to be performed by Rishitosh Mukherjee at this level.

Q.

A company has its registered office in Delhi. The manufacturing unit at Gurgaon and marketing and sales department at Faridabad. The company manufactures consumer products. Which type of organisational structure should it adapt to achieve its target?

Q.

Which of the following does not follow the scalar chain?

(a) Functional structure

(b) Divisional Structure

(c) Formal organisation

(d) Informal organisation

Q.

Define the term ‘Organising’ and enumerate the steps involved in the process of organising.

Q.

___ structure leads to conflicts among different divisions regarding the allocation of funds and resources.

1. Functional

2. Divisional

3. None of these

4. Informal

Q.

Kiran Industries is a company manufacturing office furniture. The company chose to diversify its operations to improve its growth potential and increase market share. As the project was important many alternatives were generated for the purpose and were thoroughly discussed amongst the members of the organisation. After evaluating the various alternatives Sukhvinder, the Managing Director of the company decided that they should add 'Home Interiors and Furnishings' as a new line of business activity. What kind of an organisational structure should such an organisation adapt?

Q.

Draw a diagram depicting a divisional structure.

Q.

An organisation is manufacturing medicines, cosmetics, soaps and textiles. What kind of organisational structure is suitable for this organisation?

1. Divisional organisational structure

2. Functional organisational structure

3. Informal organisational structure

4. None of these

Q.

All the activities related to one type of product are grouped under one department only which brings integration and coordination in the activities. This is also called ___

1. Product specialisation

2. None of these

3. Product focus

4. Product flexibility

Q. A company, which manufactures a popular brand of toys, has been enjoying good market reputation. It has a functional organisational structure with separate departments for Production, Marketing, Finance, Human Resources and Research and Development.
Lately to use its brand name and also to cash on to new business opportunities it is thinking to diversify into manufacture of new range of electronic toys for which a new market is emerging.

Which organisation structure should be adopted in this situation? Give concrete reasons with regard to benefits the company will derive from the steps it should take.

Q.

Grouping of activities on the basis of product lines is a part of

(a) Delegated organisation

(b) Divisional organisation

(c) Functional organisation

(d) Autonomous organisation

Q.

Kesar & Co. is a successful shoe manufacturing company. They planned to expand their business activities by adding more line of products like leather, belts, and garments.

(i) Which type of structure was it earlier? Explain.

(ii) What would you recommend the structure to be after expansion?

(iii) Why would you recommend this structure after expansion?

Q.

A company comprised of competing divisions allows its top management frame policies or sound strategic thinking on various aspects like allocation of resources, funds, etc. In the light of the above statement, state the disadvantages of divisional structure.

Q.

Grouping of activities on the basis of product lines is a part of

(a) Delegated organisation

(b) Divisional organisation

(c) Functional organisation

(d) Autonomous organisation

Q.

If the company deals with chemical and electrical goods, which type of organisation is useful ______.

1. Divisional Structure.

2. Functional Structure.

3. Centralised Structure.

4. Decentralised Structure.

Q.

Grouping of activities on the basis of functions is a part of

(a) Decentralised organisation

(b) Divisional organisation

(c) Functional organisation

(d) Centralised organisation

Q. A company, which manufactures a popular brand of toys, has been enjoying good market reputation. It has a functional organisational structure with separate departments for Production, Marketing, Finance, Human Resources and Research and Development.

Lately to use its brand name and also to cash on to new business opportunities it is thinking to diversify into manufacture of new range of electronic toys for which a new market is emerging.

Questions
Prepare a report regarding organisation structure giving concrete reasons with regard to benefits the company will derive from the steps it should take.

Q. A company has its registered office in Delhi, manufacturing unit at Gurgaon and marketing and sales department at Faridabad. The company manufactures the consumer products. Which type of organisational structure should it adopt to achieve its target?

Q. The production of the new iPhone is split up into many different parts: design, hardware, software, manufacture, marketing, production, and assembly. This way, the company can hire specialised people for each task. Tim Cook is the overall authority over the employees. He is responsible for ensuring that his employees are motivated towards achieving the organisational goal. A hierarchical structure developed by Steve Jobs was modified by Tim Cook so that there is a systematic chain from top to bottom levels of workers at Apple. This hierarchy allows communication even across the departments in the company. There is just one person managing the entire organisation. The company has special recognition for employees, such as the Apple Genius, which offers $45, 000/year. Also, they are provided with health benefits, financial and retirement benefits, family and parenting benefits, etc. The company is divided into design, hardware, software, manufacture, marketing, production, and assembly.
What type of organisational structure is seen here?

[0.80 marks]

1. Centralised
2. Decentralised
3. Functional
4. Divisional

Q.

Grouping of activities on the basis of product lines in is part of

1. functional organisation

2. divisional organisation

3. autonomous organisation

4. delegated organisation

Q. Write short answer of the following.

What are demerits of co-operative society?

Q.

Product specialisation, growth, and expansion are merits of ___ structure.

1. Formal

2. Functional

3. Divisional

4. None of these

Q. A LIMITED ENGAGE TO PRODUCTION
OF TWO PRODUCTS, TEXTILE AND BEAUTY COSMETICS . THE GENERAL MANAGER IS PLANNING TO STRUCTURE THE ORGANISATION WHICH TYPES OF ORGANISATIONAL STRUCTURE SHOULD ADOPT AND WHY ?

Q. The activities and employees in ?Elegance Pvt. Ltd.?, a footwear manufacturing company, can be broadly grouped into five departments namely; production, purchase, marketing, accounts and personnel. Over the years the company has grown and expanded its operations manifolds. The company now intends to diversify into leather bags segment. So its management has decided to restructure its operations. They plan to create separate product divisions for each product line wherein the functioning of each division will be further divided into five departments namely; production, purchase, marketing, accounts and personnel.
In context of the above case:
How is the company?s future organisational structures likely to be different from the existing one? State any three points of differences between the two types of organisational structures