A company has been registered under the Companies Act with an authorized share capital of `20,000 crores. Its registered office is situated in Delhi and manufacturing unit in a backward district of Rajasthan. Its marketing department is situated in Bhopal.
The company is manufacturing Fast Moving Consumer Goods (FMCG).
(i) Suggest with the help of a diagram a suitable organization structure for the company.
(ii) State any three advantages of this organization structure.
The most suitable organisation structure for Fast Moving Consumer Goods is Divisional Structure.
(ii) Advantages of a divisional structure are:
(a) It promotes flexibility and initiative
(b) It facilitates expansion and growth
(c) Divisional heads are accountable for profits.
State any one advantage of ‘Formal Organisation’.
Give the meaning of ‘Authority’ as an element of delegation.
’Organising involves a series of steps in order to achieve the desired goals.” Explain these steps.
State any three advantages of formal organization.
