Question:
Fresh Foods Pvt. Ltd. manufactures and distributes organic packaged
food products. It’s operations are divided into five main departments –
Production, Marketing, Finance, Human Resources and Research and
Development. Each department has its own head and a team that focuses
only on the work related to their department. This promotes efficiency in
utilization of manpower as employees perform similar tasks within a
department and are able to improve performance. This also helps in
increasing managerial and operational efficiency and results in increased
profit. Since each department handles a narrow range of tasks and focus is
on a limited range of skills, it is easier to train new employees. Identify the organization structure followed by Fresh Foods Pvt. Ltd.
Fresh Foods Pvt. Ltd. manufactures and distributes organic packaged
food products. It’s operations are divided into five main departments –
Production, Marketing, Finance, Human Resources and Research and
Development. Each department has its own head and a team that focuses
only on the work related to their department. This promotes efficiency in
utilization of manpower as employees perform similar tasks within a
department and are able to improve performance. This also helps in
increasing managerial and operational efficiency and results in increased
profit. Since each department handles a narrow range of tasks and focus is
on a limited range of skills, it is easier to train new employees. Identify the organization structure followed by Fresh Foods Pvt. Ltd.
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Remember: When departments are formed based on primary jobs or functions (like Production or Marketing), it is always a Functional Structure.
Updated On: Jun 25, 2026
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Correct Answer: 4
Solution and Explanation
Step 1: Concept
Types of Organizational Structure.
Step 2: Meaning
Grouping jobs of a similar nature under major functions organizes the enterprise into distinct functional departments.
Step 3: Analysis
• Fresh Foods Pvt. Ltd. divided its operations based on primary business activities (Production, Marketing, Finance, Human Resources, and Research and Development).
• Grouping activities on the basis of specific, related functions is the defining characteristic of a functional structure.
Step 4: Conclusion
The organizational structure followed by Fresh Foods Pvt. Ltd. is the
Functional Structure.
Types of Organizational Structure.
Step 2: Meaning
Grouping jobs of a similar nature under major functions organizes the enterprise into distinct functional departments.
Step 3: Analysis
• Fresh Foods Pvt. Ltd. divided its operations based on primary business activities (Production, Marketing, Finance, Human Resources, and Research and Development).
• Grouping activities on the basis of specific, related functions is the defining characteristic of a functional structure.
Step 4: Conclusion
The organizational structure followed by Fresh Foods Pvt. Ltd. is the
Functional Structure.
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