Business Studies

Organising

Easy

Mr. Avinash has joined as a vice President of a manufacturing unit manufacturing garments. As a vice president, he was given the responsibility of increasing the production and efficiency of workers. He observed that managers relied on their personal judgement while attending to the problems they confronted. So he recommended work study which will result in saving time, effort and increasing efficiency. He also noticed that management was not honouring their commitment. He surveyed the market too. His study of the survey showed that demand can be increased through diversification. He decided to diversify into footwear and handbags. He created divisions for garments, footwear and handbags and made the divisional managers responsible for performance. Each division is self contained with respect to various functions like production, purchases, finance, marketing etc. Now he decided to fill the various positions created with the right person. For this, he analysed the number and type of workers needed. He got his organisation registered at naukri.com.

'Each division is self contained with respect to various functions like production, purchases, marketing and finance'. Identify the type of organisational structure highlighted in the above statement.

Administrative structure

Divisional structure

Functional structure

Managerial structure

✅ Correct Option: 2

Divisional structure is adopted when an organisation produces multiple product lines (garments, footwear, handbags). Each division is self-contained and performs all functions like production, purchases, finance and marketing for its own product. In a functional structure, departments are created based on functions and shared across products. The case fits Divisional structure.

Question 46

Identify the designation level of Mr Avinash in the manufacturing unit.

Question 47

'Management is not honouring their commitment'. Identify the principle of Fayol being ignored in the above statement.

Question 49

Identify the Concept used by Mr. Avinash when he analysed the need for number and type of workers required.

Question 50

Identify the principle of management which emphasizes on creating place for people and things.

'Each division is self contained with respect to various functions like production, purchases, marketing and finance'. Identify the type of organisational structure highlighted in the above statement.

Solution

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CUET Business Studies Past Year Questions (Topic-Wise)