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Questions and Answers
What is one advantage of a functional structure for organization?
What is one advantage of a functional structure for organization?
- Reduces the need for inter-departmental communication.
- Encourages diverse skill sets among employees.
- Allows for rapid response to market changes.
- Promotes efficient use of manpower. (correct)
Which issue may arise due to pursuing departmental interests over organizational interests?
Which issue may arise due to pursuing departmental interests over organizational interests?
- Increased employee satisfaction.
- Enhanced collaboration between departments.
- Greater clarity in responsibilities across departments.
- Difficulties in production due to conflicting designs. (correct)
How does a functional structure facilitate control within a department?
How does a functional structure facilitate control within a department?
- By fostering specialization through varied tasks.
- By standardizing communication methods.
- By enhancing task-related similarity among employees. (correct)
- By discouraging hierarchical management.
What can be a disadvantage of a functional structure?
What can be a disadvantage of a functional structure?
What is one potential effect of increased occupational specialization?
What is one potential effect of increased occupational specialization?
How does a functional structure impact economies of scale?
How does a functional structure impact economies of scale?
What outcome may arise from the lack of clear separation of responsibilities?
What outcome may arise from the lack of clear separation of responsibilities?
What is a benefit of focusing on a limited range of skills in employee training?
What is a benefit of focusing on a limited range of skills in employee training?
What was considered the most important step for Wipro to become a global giant?
What was considered the most important step for Wipro to become a global giant?
How does Wipro manage its various subsidiaries?
How does Wipro manage its various subsidiaries?
Which of the following describes Wipro's subsidiaries in terms of their financial independence?
Which of the following describes Wipro's subsidiaries in terms of their financial independence?
What is a main focus of Wipro's restructuring efforts?
What is a main focus of Wipro's restructuring efforts?
Why did Wipro separate itself into several subsidiaries?
Why did Wipro separate itself into several subsidiaries?
Which characteristic typifies the decentralized management approach of Wipro?
Which characteristic typifies the decentralized management approach of Wipro?
What is a likely advantage of Wipro's divisional organization structure?
What is a likely advantage of Wipro's divisional organization structure?
Which statement best describes the self-sufficiency of Wipro's subsidiaries?
Which statement best describes the self-sufficiency of Wipro's subsidiaries?
What is a key characteristic of a formal organisation?
What is a key characteristic of a formal organisation?
What is one of the limitations of the formal organisation?
What is one of the limitations of the formal organisation?
Which of the following descriptions best fits informal organisation?
Which of the following descriptions best fits informal organisation?
Which aspect does a formal organisation prioritize over interpersonal relationships?
Which aspect does a formal organisation prioritize over interpersonal relationships?
What does formal organisation enable regarding employee behaviour?
What does formal organisation enable regarding employee behaviour?
What can result from poor organisation practices in a formal setting?
What can result from poor organisation practices in a formal setting?
What is the primary focus of the formal organisation as described?
What is the primary focus of the formal organisation as described?
What does the concept of authority in a formal organisation entail?
What does the concept of authority in a formal organisation entail?
What is a disadvantage of a divisional structure?
What is a disadvantage of a divisional structure?
Which advantage is associated with an informal organization?
Which advantage is associated with an informal organization?
What is a potential conflict arising from functional structures?
What is a potential conflict arising from functional structures?
What is a primary disadvantage of formal organization?
What is a primary disadvantage of formal organization?
Which advantage of a divisional structure is emphasized over others?
Which advantage of a divisional structure is emphasized over others?
What is a primary advantage of decentralisation in an organization?
What is a primary advantage of decentralisation in an organization?
How does decentralisation impact the levels of productivity within departments?
How does decentralisation impact the levels of productivity within departments?
What is a consequence of the slower flow of information in a centralised system?
What is a consequence of the slower flow of information in a centralised system?
Which aspect of decentralisation helps ensure departments are accountable for their performance?
Which aspect of decentralisation helps ensure departments are accountable for their performance?
What is identified as a disadvantage of centralisation?
What is identified as a disadvantage of centralisation?
How does decentralisation lead to better control in an organisation?
How does decentralisation lead to better control in an organisation?
What limitation is associated with decision making at higher management levels?
What limitation is associated with decision making at higher management levels?
What scenario is most likely in a decentralised organisation?
What scenario is most likely in a decentralised organisation?
Study Notes
Organising
- The process of organising involves creating a structure for an organization, assigning roles, and allocating resources
Importance of Organising
- Helps to achieve goals by focusing efforts and resources
- Coordinates activities to prevent duplication of effort
- Improves efficiency through specialization and division of labour
- Facilitates collaboration and communication
Types of Organisation Structures
- Functional structure groups employees based on their expertise or skill sets, leading to specialisation and efficiency
- Advantages: Improved efficiency through specialization, better control, increased managerial efficiency, easier training
- Disadvantages: Potential conflicts between departments, limited career development opportunities, lack of flexibility
- Divisional structure groups activities based on product lines or markets
- Advantages: Integration, product specialisation, greater accountability, flexibility, better coordination, increased initiative
- Disadvantages: Potential conflicts between divisions, higher cost, neglecting overall organizational interest, need for more general managers
- Formal structure is a system of defined roles, responsibilities, and authority established by management
- Advantages: Clear roles, accountability, unified command, goal focus
- Disadvantages: Procedural delays, limited creativity, inflexible
- Informal structure emerges spontaneously through interaction among employees
- Advantages: Fast communication, social fulfillment, addressing limitations in formal structure
- Disadvantages: Disruptive force, resistance to change, prioritizing group interests
Decentralisation
- Decentralisation involves distributing decision-making power to lower levels of management
- Advantages: Faster decision-making, improved responsiveness to local conditions, increased job satisfaction, reduced workload for top management, better control
- Disadvantages: Poor coordination, potential conflicts between departments, lack of uniformity across the organization
Wipro Example
- Wipro Technologies, an Indian IT solutions provider, is restructuring to become a global giant
- They have created subsidiaries for different product lines, aiming for improved customer orientation and decentralisation
- They have transitioned from a centralised to a decentralised management system
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Description
Explore the key concepts of organizing within an organization, including its importance and various types of organizational structures. Understand the advantages and disadvantages of functional and divisional structures, and how they impact efficiency and collaboration.
