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There are 4 companies in Mumbai Industrial Area: XYZ Ltd., ABC Ltd., PQR Ltd and STU Ltd. First company is XYZ Ltd which has production, sales, purchase, accounts and personnel as primary functions and each function is performed by a separate department named after it such as production department, marketing department, personnel department, etc. Second Company is ABC Ltd which is a textile mill and has organized its departments into spinning, weaving, calendaring and dyeing. PQR Ltd. has factories at different locations in the country are good examples. Regional or territorial basis of departmentation is more common in the marketing activities. Further, Departmental Stores, Chain Stores and regional sales divisions assist dispersal of sales and services uniformly and economically all over the country. The management functions which include planning, decision-making, directing and control are facilitated taking each territory as a profit centre. Third Company is STU Ltd which is a hybrid organizational structure in which two or more forms of departmentalization, especially product and functional are used together.

1- Which is the basis of departmentation adopted by ABC Ltd?

OPTIONS

Departmentation by process

Departmentation by functions

Departmentation by geographical locations

None of the above

2-Which is the basis of departmentation adopted by XYZ Ltd?

OPTIONS

Departmentation by process

Departmentation by functions

Departmentation by geographical locations

None of the above

3-As PQR is based on departmentation by geographical locations, what is(are) the disadvantages of this departmentation?

OPTIONS

Requires more persons with general manager abilities.

Tends to make maintenance of economical central services difficult and may require services such as personnel, or purchasing at the regional level.

Complicating the task of coordination of divisions

All of the above

4- As PQR is based on departmentation by geographical locations, what is(are) the advantages of this

departmentation?

OPTIONS

Better adjustment is possible.

Greater Access to Local and Territorial Economies and Facilities Possible

Decision-Making and Communication are Facilitated

All of the above

5- STU Ltd is a hybrid organizational structure in which two or more forms of departmentalization, especially product and functional are used together. This organisational structure is also known as:

OPTIONS

Line organisational structure

Line & staff organisational structure

Matrix organisational structure

None of the above

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