All Exams Test series for 1 year @ ₹349 only
Question

Mr. Avinash has joined as a Vice President of a manufacturing unit manufacturing garments. As a vice president, he was given the responsibility of increasing the production and efficiency of workers.

He observed that managers relied on their personal judgement while attending to the problems they confronted. So, he recommended work study which will result in saving time, effort and increasing efficiency.

He also noticed that management was not honouring their commitment.

He surveyed the market too. His study of the survey showed that demand can be increased through diversification. He decided to diversify into footwear and handbags. He created divisions for garments, footwear and handbags and made the divisional managers responsible for performance. Each division is self-contained with respect to various functions like production, purchases, finance, marketing etc.

Now he decided to fill the various positions created with the right person. For this, he analysed the number and type of workers needed. He got his organisation registered at naukri.com.

"Each division is self-contained with respect to various functions like production, purchases, marketing and finance". Identify the type of organisational structure highlighted in the above statement.

The correct answer is

Divisional structure

The statement describes a "Divisional structure," where each division of the organization operates independently with its own functional departments (e.g., production, marketing, finance). This structure is designed to handle specific products, services, or geographic areas. Therefore, the correct answer is (b) Divisional structure.

Was this answer helpful?

Important Questions from Staffing

  1. Identify the function of management that brings back the management cycle back to the planning function.

  2. ________ helps to minimise dishonest behaviour on the part of the employees by keeping a close check on their activities.

  3. Identify the concept that provides the framework which enables the enterprise to function as an integrated unit by regulating and coordinating the responsibilities of Individuals and departments.

  4. "One of the principles of Directing emphasises that directing techniques must help every individual in the organisation to contribute to its maximum potential for achievement of organisational goal." Identify the principle of Directing being reflected above.

  5. ______ test is a measure of individuals' potential for learning new skills.

Need Expert Advice?

Start Your Preparation with Prepp Mobile App

Download the app from Google Play & App Store
Download the app from Google Play & App Store
Prepp Mobile App