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InterviewSolution
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A Steel Manufacturing Company has the following main jobs:(i) Manufacturing (ii) Finance (iii) Marketing (iv) Personnel; and (v) Research and Development. Which type of organisational structure will you choose for this type of a company and why? State any five advantages of this organisational structure. |
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Answer» Functional structure of organisation as all major functions can be performed well under separate specialised departments. Advantages: (i) Specialization: A functional structure leads to occupational specialization since emphasis is placed on specific functions. (ii) Efficiency: It helps in increasing managerial and operational efficiency and this result in increased profit. (iii) Minimises costs: It leads to minimum duplication of effort which results in economies of scale and thus reduces cost. (iv) Better control and co-ordination: It promotes control and coordination within a department because of similarity in the tasks being performed. (v) Proper attention: It ensures that different functions get due attention. (vi) Ease in training employees: In makes training of employees easier as the focus is only on a limited range of skills |
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