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Discuss the different types of organizational structures.

Discuss the different types of organizat | Class 12 Business Studies Chapter Organising, Organising NCERT Solutions

Welcome to the NCERT Solutions for Class 12 Business Studies - Chapter Organising. This page offers a step-by-step solution to the specific question from Exercise 4: Extra Questions, Question 5: . With detailed answers and explanations for each chapter, students can strengthen their understanding and prepare confidently for exams. Ideal for CBSE and other board students, this resource will simplify your study experience.

Question 5:

Discuss the different types of organizational structures.

Answer:

Organizational structures define how tasks are divided, coordinated, and controlled within a company. The two main types of structures used in businesses are functional and divisional.

Functional Structure: This is one of the most common organizational structures where the company is divided into functional departments such as marketing, finance, human resources, and production. Each department performs specialized tasks. The key benefits include:
- Specialization: Employees focus on their specific functional areas, leading to expertise and high efficiency.
- Clear Career Paths: Employees have a clear trajectory for career advancement within their function.
- Operational Efficiency: Since employees in each function perform similar tasks, resources are used efficiently.

However, one drawback of the functional structure is that it may lead to poor coordination between departments, as employees may prioritize their department’s goals over the organization’s overall objectives.

Divisional Structure: In this structure, the organization is divided into divisions based on products, services, or geographic areas. Each division operates almost like a separate entity, with its functional departments. The key benefits are:
- Focus on Products/Markets: Each division focuses on specific products or geographic regions, making it more responsive to market demands.
- Accountability: Divisional heads are responsible for the profitability and success of their respective divisions, which fosters accountability.

However, this structure can lead to resource duplication as each division has its own departments, increasing operational costs.

Matrix Structure: A more complex structure where employees report to both functional managers and project managers. It allows for flexibility and better resource allocation, especially in project-based industries.

In conclusion, while both functional and divisional structures have their merits, the choice of structure depends on the organization’s size, nature, and objectives. A functional structure suits organizations focusing on efficiency, while a divisional structure is more appropriate for businesses with diverse products or regions.

Other Questions of Chapter Organising

A company manufacturing sewing machines set up in 1945 by the British promoters follows formal organisation culture in totality. It is facing lot of problems in delays in decision making. As the result it is not able to adapt to changing business environment. The work force is also not motivated since they cannot vent their grievances except through formal channels, which involve red tape. Employee turnover is high. Its market share is also declining due to changed circumstances and business environment. You are to advise the company with regard to change it should bring about in its organisation structure to overcome the problems faced by it. Give reasons in terms of benefits it will derive from the changes suggested by you.

Can a large sized organisation be totally centralised of decentralised? Give your opinion.

What is the meaning of organizing in management?

How does informal organisation support the formal organisation?

State two important steps in the organizing process.

Draw a diagram depicting a functional structure.

How is a functional structure different from a divisional structure?

Distinguish between centralisation and decentralisation.

Decentralisation is extending delegation to the lowest level. Comment.

A company X limited manufacturing cosmetics, which has enjoyed a pre-eminent position in business, has grown in size. Its business was very good till 1991. But after that, new liberalised environment has seen entry of many MNC’s in the sector. With the result the market share of X limited has declined. The company had followed a very centralised business model with Directors and divisional heads making even minor decisions. Before 1991 this business model had served the company very well as consumers had no choice. But now the company is under pressure to reform. What organisation structure changes should the company bring about in order to retain its market share? How will the changes suggested by you help the firm? Keep in mind that the sector in which the company is FMCG.

Popular questions of class 12 Business Studies

What are the steps taken by management in the planning process?

Why is management considered to be a multi-dimensional concept?

Explain the procedure for selection of employees.

Indian Railways has launched a new broad gauge solar power train which is going to be a path breaking leap towards making trains greener and more environment friendly. The solar power DEMU (Diesel Electric Multiple Unit) has 6 trailer coaches and is expected to save about 21,000 liters of diesel and ensure a cost saving of Rs 12, 00,000 per year. Name the objectives of management achieved by Indian Railways in the above case.

The government of India announced Demonetization of ₹ 500 and ₹ 1,000 currency notes with effect from the midnight of November 8, 2016. As a result, the existing ₹ 500 and ₹ 1,000 currency notes ceased to be legal tender from that date. New currency notes of the denomination of ₹ 500 and ₹ 2,000 were issued by Reserve Bank of India after the announcement.

This step resulted in a substantial increase in the awareness about and use of Point of Sale machines, e-wallets, digital cash and other modes of cashless transactions. Also, increased transparency in monetary transactions and disclosure led to a rise in government revenue in the form of tax collection.

a. Enumerate the dimensions of the business environment highlighted above.
b. State the features of Demonetization.

How would you characterize the business environment? Explain with examples, the difference between general and specific environment.

Discuss the relevance of Taylor and Fayol’s contribution in the contemporary business environment.

Define scientific management. State any three of its principles.

Explain the qualities of a good leader? Do the qualities alone ensure leadership success?

National Digital Library of India (NDL India) is a pilot project initiated by the HRD ministry. It works towards developing a framework of virtual repository of learning resources with a single-window search facility. It provides support to all academic levels including researchers, life-long learners and differently-abled learners free of cost. State the dimensions of business environment highlighted above.

Recently Viewed Questions of Class 12 Business Studies

What is the role of NGOs in Consumer Protection?

Why is understanding the business environment crucial for managers?

Discuss the role of SEBI in regulating the financial markets in India.

What is the role of the Central Consumer Protection Authority (CCPA)?

State the different networks of grapevine communications.

Kaul Consultants have launched www.naukaripao.com exclusively for senior management professionals. The portal lists out senior level jobs and ensures that the job is genuine through rigorous screening process.

a. State the source of recruitment highlighted in the case above.
b. State four benefits of the above identified source of recruitment.

Why are rules considered to be plans?

Explain how management is both an art and a science.

What are the main functions of the financial market?

Name the principle that is an extension of the ‘harmony, not discord’.

Study Tips for Answering NCERT Questions:

NCERT questions are designed to test your understanding of the concepts and theories discussed in the chapter. Here are some tips to help you answer NCERT questions effectively:

Read the question carefully and focus on the core concept being asked.
Reference examples and data from the chapter when answering questions about Organising.
Review previous year question papers to get an idea of how such questions may be framed in exams.
Practice answering questions within the time limit to improve your speed and accuracy.
Discuss your answers with your teachers or peers to get feedback and improve your understanding.

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