Question

Long Answer Questions:
Explain different types of organisational structures.

Answer 1

The organizational structure can be classified under following two types:

1. Functional Structure: This is the simplest & the most prevalent form of organizational structure. Functional organisational structure refers to the structure in which different departments are created on the basis of major functions performed in the organisation.

2.Divisional Structure: Dividing the whole organisation according to the major products to be manufactured by them is known as Divisional Organizational Structure. For example Samsung, Reliance etc. This type of structure is devised by the business firms when they are dealing in different categories of products. It helps in coping with the emerging complexities due to diversification of products.