In an organization, the major departments are toys, telecommunications, fabrics and automobiles. The type of organizational structure adopted here is:
In an organization, the major departments are toys, telecommunications, fabrics and automobiles. The type of organizational structure adopted here is:
Solution
Option 1: Staff organisation -> Refers to advisory and support positions that assist line managers, not a structure based on product departments -> incorrect
Option 2: Functional structure -> Groups activities by business functions (like marketing, finance, HR, production), not by product lines -> incorrect
Option 3: Committee organisation -> Decision-making structure involving groups/committees, not departmentalization by products -> incorrect
Option 4: Divisional structure -> Organizes departments based on products, services, geography, or markets; here departments are clearly product-based (toys, telecommunications, fabrics, automobiles) -> correct
Hence, Option 4: Divisional structure -> When an organization creates separate divisions or departments based on different product lines, geographical areas, or customer segments, it follows a divisional structure. In this case, the organization has distinct product-based divisions (toys, telecommunications, fabrics, and automobiles), each likely operating semi-autonomously with its own resources and functions -> correct
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