Question

Online retailer ‘Bizen’ has grown to be the biggest provider worldwide in the field of e-commerce. Its revenues are growing steadily year after year. It owes its success to the rapid rate of digitisation and its organisational structure. ‘Bizen’s Managing Director, Mohit makes strategic decisions and has control over the entire organisation. In ‘Bizen’, jobs of similar nature are grouped together into Human Resource Department, Marketing Department, Purchase Department and Research and Development Department. These departments are further divided into sections and all departmental heads report to Mohit who is the co-ordinating head. This ensures efficiency in the utilization of manpower and minimizes duplication of efforts. The type of organizational structure of ‘Bizen’ is:

• A. Informal organisational structure
• B. Divisional organisational structure
• C. Functional organisational structure
• D. Both (B) and (C)

Answer 1

The Correct Option is C

Step 1: A functional organizational structure consolidates comparable roles into departments aligned by their core responsibilities, for instance, Human Resources, Marketing, and Finance. Step 2: For 'Bizen,' job roles were categorized according to their inherent nature (e.g., HR, Marketing). This arrangement signifies a functional structure, with departmental leaders reporting to a singular managing director. Consequently, option C is the accurate selection.