1 View

Question : Ramesh is the owner of a factory that makes locks. He produces locks for use in homes. He wants to grow his company. He intends to do this by getting into the production of motorcycle and auto locks. He will determine whatever form of organisational structure for his factory.

Option 1: Functional structure

Option 2: Divisional structure

Option 3: Formal organisational structure

Option 4: Informal organisational structure


Team Careers360 1st Jan, 2024
Answer (1)
Team Careers360 13th Jan, 2024

Correct Answer: Functional structure


Solution : He will decide on a "Divisional Structure" for his factory because it produces multiple goods. Divisional structure has the following benefits: I Product specialisation aids in the development of a wide range of talents. (ii) It aids in establishing accountability for divisional leaders who are responsible for the revenues, earnings, and expenses associated with their departments It encourages adaptability, initiative, and quicker decision-making because each section operates independently. (iv) It promotes development and expansion because new divisions can be introduced without affecting current operations. (v) Because all activities pertaining to a specific product line are integrated together, it lessens the issue of coordination between departments.
Hence, the correct option is 1.

Related Questions

Amity University, Noida Law A...
Apply
700+ Campus placements at top national and global law firms, corporates, and judiciaries
UPES Integrated LLB Admission...
Apply
Ranked #28 amongst Institutions in India by NIRF | Ranked #1 in India for Academic Reputation by QS University Rankings | 16.6 LPA Highest CTC
Great Lakes PGPM & PGDM 2025
Apply
Admissions Open | Globally Recognized by AACSB (US) & AMBA (UK) | 17.3 LPA Avg. CTC for PGPM 2024 | Extended Application Deadline: 10th Jan 2024
Amity University Noida B.Tech...
Apply
Among Top 30 National Universities for Engineering (NIRF 2024)
ISBR Business School PGDM Adm...
Apply
250+ Companies | Highest CTC 16 LPA | Average CTC 8 LPA | Ranked as Platinum Institute by AICTE for 6 years in a row | Awarded Best Business School...
Chandigarh University Admissi...
Apply
Ranked #1 Among all Private Indian Universities in QS Asia Rankings 2025 | Scholarships worth 210 CR
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books