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A steel manuacturing compnay has the following main jobs: (i) manufacturing , (ii) finance (iii) marketing (iv) personnel and (v) research and development (a) which type of organisation strutures will you choose for this type of company and why? (b) state any five advantage that this structure offers to an organisation |
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Answer» (a) Functional structure, because the company has diversified activities and operations require a high degree of specialisation. Advantages: The functional structure has many advantages to offer.Important among them are as follows: (a) A functional structure leads tooccupational specialisation sinceemphasis is placed on specificfunctions. This promotes efficiencyin utilisation of manpower asemployees perform similar taskswithin a department and are ableto improve performance. (b) It promotes control and coordination within a departmentbecause of similarity in the tasksbeing performed. (c) It helps in increasing managerialand operational efficiency andthis results in increased profit. (d) It leads to minimal duplication ofeffort which results in economiesof scale and this lowers cost. (e) It makes training of employeeseasier as the focus is only on alimited range of skills. (f) It ensures that different functionsget due attention |
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