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.

(i) Identify the organization structure followed by Fresh Foods Pvt. Ltd.

Hint:

Functional structure is most suitable for large organizations with a single line of products. It promotes occupational specialization. Managers become experts in their specific fields (e.g., a Marketing Manager).

Answer 1

Concept:

• Organization Structure: The framework within which managerial and operating tasks are performed.

• Functional Structure: Grouping of activities on the basis of functions (like production, marketing, etc.) into separate departments.
Step 1: Identify the structure based on departmentalization
In the given case, the company has divided its operations into five main departments: Production, Marketing, Finance, HR, and R&D.

Each department is created based on the specific specialized function it performs.

Step 2: Final Identification
Since the organization is structured around major functions, it follows a Functional Structure.