Question : The heads of two different departments at "Yamuna Ltd." are Aman and Ganga. They are effective managers who can inspire the staff in their particular departments to achieve better. The connection between the departments that Aman and Ganga are in charge of has been hampered by their desire to flourish in their individual fields rather than placing priority on the company's goals. There are frequently issues between departments, and they are now incompatible. This has shown to be detrimental to achieving organisational goals. The CEO of "Yamuna Ltd." has recruited Rahim as a consultant to help fix the situation because it has gotten so bad. After carefully examining the scenario, Rahim concluded that both Aman and Ganga's rigidity and limited viewpoint were to blame for the issue's emergence. She believes that the organisational structure that "Yamuna Ltd." has chosen is what has led to this issue. Determine the organisational structure that "Yamuna Ltd." has chosen based on the information given.
Option 1: Functional structure
Option 2: Divisional structure
Option 3: Formal Organisation Structure
Option 4: Informal Organisation Structure
Correct Answer: Functional structure
Solution :
Yamuna Ltd.'s organisational structure is a functional organisational structure. These are the three benefits of this structure:
1. Specialization: A functional framework that emphasises particular functions, which results in occupational specialisation.
2. Efficiency: It contributes to improving managerial and operational effectiveness, which raises profit.
3. Minimizes Costs: It results in the least amount of effort being duplicated, which creates economies of scale and lowers costs.
Hence, the correct option is 1.
