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Practice each question, then open the answer or worked solution.
Identify the network of social relationships which arises spontaneously due to interaction at work.
Informal organisation is referred to as the social relationship network that arises naturally as a result of interaction at work. The emergence of an informal organisation is a from social interaction and free flow of communication between the employees of the organisation.
What does the term ‘span of management’ refer to?
The term span of management refers to the number of subordinates a manager is able to handle efficiently. It determines the nature and structure of an organisation. There are two types of span of management: 1) Narrow 2) Wide
The span of management is dependent on various factors such as leadership, control, decentralisation extent in the organisation, nature of work and the working ability of the subordinates.
State any two circumstances under which the functional structure will prove to be an appropriate choice?
The functional structure requires grouping and organising activities that are of similar nature. Under a functional organisation, each group functions separately and specialises in its work. a financial structure is suitable for organisations that are large and which have various functions.
Here are two circumstances that under functional structure is appropriate. They are
1. Large-sized organisations need to have a functional structure in order to operate smoothly. There will be many departments within the organisation, and making differentiation based on departments is very much helpful for an organisation. It helps in improving the efficiency of the managers so that the work progresses smoothly.
2. A high degree of coordination is required for managing various functions. It is done to improve efficiency. If an organisation has a clear division of work, a functional structure helps in promoting coordination between the various departments and thereby ensures all functions go on smoothly.
Draw a diagram depicting a functional structure.
Solution coming soon.
A company has its registered office in Delhi, a manufacturing unit in Gurgaon and a marketing and sales department in Faridabad. The company manufactures consumer products. Which type of organisational structure should it adopt to achieve its target?
For this company, the type of organisation structure that needs to be followed is functional organisation. This can be justified using the following points:
1. Being a large organisation, it requires proper departmentalisation. It helps in increasing the efficiency of the managers and also provides a great degree of control over the activities of the organisation.
2. Organisation like this is managing multiple functions simultaneously where coordination of a high degree is required. It can be achieved in a smooth way by arranging a proper division of activities among various departments under a functional structure.
3. Specialisation will be promoted under functional structure, and it will help in performing all the diverse functions effortlessly.