Voltage fluctuations have been common and quite high in India. They harm our electrical appliances like television, refrigerators and air conditioners, often leaving them in a permanently damaged situation. N-Guard Company decided to manufacture stabilizers for North India where the voltage fluctuation ranges from 220V-230V. Once the demand for the North India was taken care
of, they decided to launch stabilizers of varying voltages from 90 V -260V for meeting the requirements of voltage fluctuations in other regions of India also.
Three engineers were appointed for South, West and East regions of India, as the voltage was different in all the three regions. Though all the engineers were appointed to manufacture stabilizers but the product differed from region to region.
(a) Identify the organisational structure of N Guard Company.
(b) State any two advantages and two limitations of the structure identified in the above para.
[CBSE 2019 (66/1/1)]
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Answer:
(i) Company has opted divisional structure.
(ii) Divisional structure has the following advantages:
(a) It helps the managers to develop varied skills related to a product and facilitates managerial
development.
(b) Fixation of responsibility and accountability is easy, as divisional heads are responsible for
the profits and losses of their divisions.
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