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Read the following text and answer the questions given below:
'Pappu Sweets Makers' is a sweets making company which has turnover in crores. In order to manage the work in the organisation, the departments have been created on the basis of functions.
Examine the following situations of this organisation and give answers accordingly:
Situation 1: It is expected that employees who are performing similar tasks work under the same department. So the company now has HR, Marketing and Finance departments. The division is based on specific functions.
Situation 2: There are similarities in the tasks performed within the same department.
Situation 3: The profit is increasing month by month due to the success of this structure of the organisation.
Situation 4: There has been minimum duplication of efforts as the same department is taking care of single function.
Q. What will be the result of Situation 4?
- a)Reduction in cost
- b)Increase in cost
- c)Stability to the organization
- d)None of the above
Correct answer is option 'A'. Can you explain this answer?
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Verified Answer
Read the following text and answer the questions given below:'Pappu S...
- Cost reduction is the process used by companies to reduce their costs and increase their profits.
- Depending on a company’s services or product, the strategies can vary.
- Every decision in the product development process affects cost.
- Companies typically launch a new product without focusing too much on cost.
Most Upvoted Answer
Read the following text and answer the questions given below:'Pappu S...
Understanding Situation 4: Minimum Duplication of Efforts
In Situation 4, the organization has structured its departments functionally, which has led to minimum duplication of efforts. This organizational structure directly contributes to a reduction in costs for several reasons:
1. Streamlined Processes
- Employees within the same department perform similar tasks, allowing for a more focused approach to work.
- This reduces the time and resources spent on coordinating activities across different departments.
2. Enhanced Efficiency
- Functional departments can specialize in their respective tasks, leading to higher productivity and efficiency.
- With clear roles and responsibilities, employees can work more efficiently without overlapping duties.
3. Cost Savings
- By minimizing duplication, the organization avoids unnecessary expenditures associated with redundant tasks and resources.
- For example, if two departments were previously handling the same marketing function, consolidating that function leads to fewer marketing materials and lower operational costs.
4. Better Resource Allocation
- Resources, including time, manpower, and finances, can be allocated more effectively when departments focus on single functions.
- This allows the company to invest in growth areas rather than spread resources thinly across multiple overlapping functions.
Conclusion
Overall, the results of having a well-structured functional organization, as seen in Situation 4, directly lead to a reduction in costs. This efficiency not only maximizes operational effectiveness but also contributes to the company's profit margins, allowing for reinvestment in further innovation and expansion.
In Situation 4, the organization has structured its departments functionally, which has led to minimum duplication of efforts. This organizational structure directly contributes to a reduction in costs for several reasons:
1. Streamlined Processes
- Employees within the same department perform similar tasks, allowing for a more focused approach to work.
- This reduces the time and resources spent on coordinating activities across different departments.
2. Enhanced Efficiency
- Functional departments can specialize in their respective tasks, leading to higher productivity and efficiency.
- With clear roles and responsibilities, employees can work more efficiently without overlapping duties.
3. Cost Savings
- By minimizing duplication, the organization avoids unnecessary expenditures associated with redundant tasks and resources.
- For example, if two departments were previously handling the same marketing function, consolidating that function leads to fewer marketing materials and lower operational costs.
4. Better Resource Allocation
- Resources, including time, manpower, and finances, can be allocated more effectively when departments focus on single functions.
- This allows the company to invest in growth areas rather than spread resources thinly across multiple overlapping functions.
Conclusion
Overall, the results of having a well-structured functional organization, as seen in Situation 4, directly lead to a reduction in costs. This efficiency not only maximizes operational effectiveness but also contributes to the company's profit margins, allowing for reinvestment in further innovation and expansion.
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Read the following text and answer the questions given below:'Pappu Sweets Makers' is a sweets making company which has turnover in crores. In order to manage the work in the organisation, the departments have been created on the basis of functions.Examine the following situations of this organisation and give answers accordingly:Situation 1: It is expected that employees who are performing similar tasks work under the same department. So the company now has HR, Marketing and Finance departments. The division is based on specific functions.Situation 2: There are similarities in the tasks performed within the same department.Situation 3: The profit is increasing month by month due to the success of this structure of the organisation.Situation 4: There has been minimum duplication of efforts as the same department is taking care of single function.Q. What will be the result of Situation 4?a)Reduction in costb)Increase in costc)Stability to the organizationd)None of the aboveCorrect answer is option 'A'. Can you explain this answer?
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Read the following text and answer the questions given below:'Pappu Sweets Makers' is a sweets making company which has turnover in crores. In order to manage the work in the organisation, the departments have been created on the basis of functions.Examine the following situations of this organisation and give answers accordingly:Situation 1: It is expected that employees who are performing similar tasks work under the same department. So the company now has HR, Marketing and Finance departments. The division is based on specific functions.Situation 2: There are similarities in the tasks performed within the same department.Situation 3: The profit is increasing month by month due to the success of this structure of the organisation.Situation 4: There has been minimum duplication of efforts as the same department is taking care of single function.Q. What will be the result of Situation 4?a)Reduction in costb)Increase in costc)Stability to the organizationd)None of the aboveCorrect answer is option 'A'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Read the following text and answer the questions given below:'Pappu Sweets Makers' is a sweets making company which has turnover in crores. In order to manage the work in the organisation, the departments have been created on the basis of functions.Examine the following situations of this organisation and give answers accordingly:Situation 1: It is expected that employees who are performing similar tasks work under the same department. So the company now has HR, Marketing and Finance departments. The division is based on specific functions.Situation 2: There are similarities in the tasks performed within the same department.Situation 3: The profit is increasing month by month due to the success of this structure of the organisation.Situation 4: There has been minimum duplication of efforts as the same department is taking care of single function.Q. What will be the result of Situation 4?a)Reduction in costb)Increase in costc)Stability to the organizationd)None of the aboveCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Read the following text and answer the questions given below:'Pappu Sweets Makers' is a sweets making company which has turnover in crores. In order to manage the work in the organisation, the departments have been created on the basis of functions.Examine the following situations of this organisation and give answers accordingly:Situation 1: It is expected that employees who are performing similar tasks work under the same department. So the company now has HR, Marketing and Finance departments. The division is based on specific functions.Situation 2: There are similarities in the tasks performed within the same department.Situation 3: The profit is increasing month by month due to the success of this structure of the organisation.Situation 4: There has been minimum duplication of efforts as the same department is taking care of single function.Q. What will be the result of Situation 4?a)Reduction in costb)Increase in costc)Stability to the organizationd)None of the aboveCorrect answer is option 'A'. Can you explain this answer?.
Read the following text and answer the questions given below:'Pappu Sweets Makers' is a sweets making company which has turnover in crores. In order to manage the work in the organisation, the departments have been created on the basis of functions.Examine the following situations of this organisation and give answers accordingly:Situation 1: It is expected that employees who are performing similar tasks work under the same department. So the company now has HR, Marketing and Finance departments. The division is based on specific functions.Situation 2: There are similarities in the tasks performed within the same department.Situation 3: The profit is increasing month by month due to the success of this structure of the organisation.Situation 4: There has been minimum duplication of efforts as the same department is taking care of single function.Q. What will be the result of Situation 4?a)Reduction in costb)Increase in costc)Stability to the organizationd)None of the aboveCorrect answer is option 'A'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Read the following text and answer the questions given below:'Pappu Sweets Makers' is a sweets making company which has turnover in crores. In order to manage the work in the organisation, the departments have been created on the basis of functions.Examine the following situations of this organisation and give answers accordingly:Situation 1: It is expected that employees who are performing similar tasks work under the same department. So the company now has HR, Marketing and Finance departments. The division is based on specific functions.Situation 2: There are similarities in the tasks performed within the same department.Situation 3: The profit is increasing month by month due to the success of this structure of the organisation.Situation 4: There has been minimum duplication of efforts as the same department is taking care of single function.Q. What will be the result of Situation 4?a)Reduction in costb)Increase in costc)Stability to the organizationd)None of the aboveCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Read the following text and answer the questions given below:'Pappu Sweets Makers' is a sweets making company which has turnover in crores. In order to manage the work in the organisation, the departments have been created on the basis of functions.Examine the following situations of this organisation and give answers accordingly:Situation 1: It is expected that employees who are performing similar tasks work under the same department. So the company now has HR, Marketing and Finance departments. The division is based on specific functions.Situation 2: There are similarities in the tasks performed within the same department.Situation 3: The profit is increasing month by month due to the success of this structure of the organisation.Situation 4: There has been minimum duplication of efforts as the same department is taking care of single function.Q. What will be the result of Situation 4?a)Reduction in costb)Increase in costc)Stability to the organizationd)None of the aboveCorrect answer is option 'A'. Can you explain this answer?.
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