Sahil Ltd. is manufacturing shirts and has production, marketing, finance and personnel departments in the organisation. Name the type of organisational structure that Sahil Ltd. is following. State any three advantages of this organisation structure.

Sahil Ltd. is following the functional organisation structure.

Advantages of Functional Organisation Structure: Following are the advantages of it:
(i) Benefits of Specialisation: The whole company is divided into many departments on the basis of major activities to be performed. Each department is headed by an expert manager. This results in more and better work being accomplished in much lesser time. Hence, the benefits of specialisation become available.

(ii) Coordination is Established: All the persons working within a department are specialists of their respective jobs. It makes the coordination easier at department level.

(iii) Managerial Efficiency is Increased: It helps in increasing managerial efficiency because of performing the same work once and again. Further, this results in increased profit.