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Long Answer Questions: 
Arran Ltd. is manufacturing toys and has production, sales, purchase and finance department. Which types of organisational structure would you suggest them? State any three advantages of this types of organisational structure.


Solution

Functional Organisation.
Merits of Functional Organization
  1. Specialization- Better division of labour takes place which results in specialization of function and it’s consequent benefit.
  2. Effective Control- Management control is simplified as the mental functions are separated from manual functions. Checks and balances keep the authority within certain limits. Specialists may be asked to judge the performance of various sections.
  3. Efficiency- Greater efficiency is achieved because of every function performing a limited number of functions.

Business Management

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