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Business Studies · 2024 · 6 marks
CBSE 2024 · Region 2 · Set 2 · Q33
Distinguish between ‘Functional Structure' and'Divisional Structure' on any six bases.Explain any four limitations of 'Planning' function ofmanagement.
Distinguish between ‘Functional Structure' and
'Divisional Structure' on any six bases.
Explain any four limitations of 'Planning' function of
management.
Marking-scheme solution
(a)
. Difference between Functional Structure and Divisional
Structure
| Basis | Functional structure | Divisional structure |
| Formation | It’s formation is based on functions. | It’s formation is based on product lines supported by functions |
| Specialisation | It leads to Functional specialisation. | It leads to product specialisation. |
| Responsibility | Difficult to fix responsibility. | Easy to fix responsibility. |
| Cost | It is economical | It is costly. |
| Coordination | Coordination is difficult for a multiproduct company | Coordination is easy for a multiproduct company. |
| Managerial Development | Managerial development is difficult, as each functional manager has to report to the top management. | Managerial development is easier. Autonomy as well as the chance to perform multiple functions helps in managerial development. |
Limitations of Planning :
(i)
Planning leads to rigidity
(ii)
Planning may not work in a dynamic environment
(iii)
Planning reduces creativity
(iv)
Planning involves huge costs
(v)
Planning is a time-consuming process
(vi)
Planning does not guarantee success
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CBSE Class 12 Business Studies past-paper question from the 2024board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.