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Question

Maan and Shaan Ltd. is manufacturing baby bottles and has separate departments of production, sales, and finance. Which type of sturcture you would suggest to them and state some of its advantages?

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Solution

I would suggest functional structure to them, because of its following advantages:

(i) It leads to occupational specialisation.

(ii) It makes training of employees easier.

(iii) It leads to increased efficiency and profits.

(iv) It ensures that all the functions get due attention.


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