Question

‘Deccan Motors Ltd.’ is shifting from a functional organisational structure to a divisional structure. Identify the benefit the company will get as a result of shifting to divisional structure :

• A. It will promote flexibility and initiative because each division will function as an autonomous unit.
• B. It will lead to minimal duplication of effort, which will result in economies of scale.
• C. It will make training of employees easier as the focus will be on limited range of skills.
• D. It will lead to occupational specialisation since emphasis will be placed on specific functions.

Hint:

Divisional structures are best for multi-product companies where each product line requires specialized attention and independent management.

Answer 1

The Correct Option is A