Question : Tushar limited is a company dealing in plastic products. This company buys raw material from other small suppliers, after segregation the material is supplied to other dealers. The work is mainly divided into function including purchase, marketing, accounting and personnel. Identify the type of organisational structure followed by the organisation.
Option 1: Functional structure
Option 2: Relational structure
Option 3: Divisional structure
Option 4: None of the above
Correct Answer: Functional structure
Solution :
When the activities or jobs are grouped keeping in mind the functions or the job then it is called functional structure. For example, all the jobs related to production are grouped in production department and so on In the above case, organisation follows functional structure.
Hence, option 1 is the correct answer.
