Aradhana and Gandharv are heads of two different departments in ‘Yum

1.	Aradhana and Gandharv are heads of two different departments in ‘Yumco Ltd.’ They are efficient managers and are able to motivate the employees of their respective departments to improve performance. However, their drive to excel in their own sphere of activity instead of giving emphasis on objectives of the enterprise has hindered the interaction between the departments that Aradhana and Gandharv are heading. Often there are inter-departmental conflicts and they have become incompatible. This has proved to be harmful in the fulfilment of the organisational objectives. The situation has deteriorated to such an extent that the CEO of ‘Yumco Ltd/ has hired a consultant, Rashmi, to resolve the problem. After studying the situation closely, Rashmi found that the problem has arisen due to inflexibility and a narrow perspective on the part of both Aradhana and Gandharv. She is of the view that this situation is a result of the type of organisational structure ‘Yumco Ltd/ has adopted. From the above information, identify the organisational structure adopted by ‘Yumco Ltd.’ and state any three advantages of the structure so identified.
Answer» The organisational structure adopted by Yumco Ltd. is a Functional Structure. Following are the advantages of functional structure of organisation : 1. Coordination – Functional structure of organisation facilitates coordination of activities at intra-departmental and inter-departmental levels. Top executives coordinate the activities at inter-departmental level whereas heads of respective departments coordinate the activities within the departments. 2. Effective control – Functional structure of organisation recognises each major function as a separate department, which ensures occupational specialisation. Functional structure enables top-executives to exercise effective control over a limited number of functions. 3. Training – Functional structure makes training of employees easier because the focus of training is only on limited range of skills. 4. Lower cost – Functional structure leads to minimal duplication of efforts which result in economies of scale. This lowers cost of organisation.

Aradhana and Gandharv are heads of two different departments in ‘Yumco Ltd.’ They are efficient managers and are able to motivate the employees of their respective departments to improve performance. However, their drive to excel in their own sphere of activity instead of giving emphasis on objectives of the enterprise has hindered the interaction between the departments that Aradhana and Gandharv are heading. Often there are inter-departmental conflicts and they have become incompatible. This has proved to be harmful in the fulfilment of the organisational objectives. The situation has deteriorated to such an extent that the CEO of ‘Yumco Ltd/ has hired a consultant, Rashmi, to resolve the problem. After studying the situation closely, Rashmi found that the problem has arisen due to inflexibility and a narrow perspective on the part of both Aradhana and Gandharv. She is of the view that this situation is a result of the type of organisational structure ‘Yumco Ltd/ has adopted. From the above information, identify the organisational structure adopted by ‘Yumco Ltd.’ and state any three advantages of the structure so identified.

Answer»

The organisational structure adopted by Yumco Ltd. is a Functional Structure.

Following are the advantages of functional structure of organisation :

1. Coordination – Functional structure of organisation facilitates coordination of activities at intra-departmental and inter-departmental levels. Top executives coordinate the activities at inter-departmental level whereas heads of respective departments coordinate the activities within the departments.

2. Effective control – Functional structure of organisation recognises each major function as a separate department, which ensures occupational specialisation. Functional structure enables top-executives to exercise effective control over a limited number of functions.

3. Training – Functional structure makes training of employees easier because the focus of training is only on limited range of skills.

4. Lower cost – Functional structure leads to minimal duplication of efforts which result in economies of scale. This lowers cost of organisation.

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