Q.(a) State any two circumstances under which the functional structure will prove to be an appropriate choice.
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Start your 14-day free trial to unlock the full solution →From Kerala Plus Two (DHSE) Commerce Organising: (a) a functional structure suits a large, single/limited product-line firm needing specialisation; (b) the factor that decides the number of levels of management is the span of management (span of control) — a narrow span means more levels (tall structure), a wide span means fewer levels (flat structure).
(a) Two circumstances where a functional structure is appropriate (2 marks):
A functional structure groups jobs of a similar nature together into departments such as production, marketing, finance and personnel. It is an appropriate choice when:
- The organisation is large in size, has diversified activities and its operations require a high degree of specialisation — grouping by function then allows specialists to be concentrated in each department.
- The organisation produces a single product or a limited/related range of products — since there is no need to organise around different products, functional departmentation is efficient and economical.
(b) Identify and explain 'this determines the level of management' (3 marks):
- The element referred to is the span of management (also called span of control).
- Span of management means the number of subordinates that a manager can effectively manage and control. It has a direct bearing on the number of levels of management in the organisation.
- A narrow span (a manager supervises few subordinates) results in a larger number of levels — a tall structure with close supervision but slower communication and higher managerial cost. …
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