Question

The production department at Karishma Ltd., a firm manufacturing readymade garments for men has an objective to increase production by 10% but the Sales department does not approve of the increase in production, till changes are brought about in the product to incorporate latest fashion. These kinds of conflicts bring to light which point of importance of the coordination that can help to accomplish the linking of activities of various departments:

• A. Growth in Size
• B. Functional Differentiation
• C. Specialization
• D. Efficiency

Hint:

Clashes of objectives between functional divisions (e.g., Marketing vs. Finance, Sales vs. Production) reflect Functional Differentiation.

Answer 1

The Correct Option is B

Concept:
Coordination is the orderly arrangement of group efforts to provide unity of action in the pursuit of common organizational goals.
It reconciles differing approaches, operational timings, and departmental priorities across various specialized divisions within an enterprise.

Step 1: Identifying the Nature of Departmental Conflict:
In Karishma Ltd., the production department is focused on increasing unit volume, while the sales department is concerned with product styling and market trends.
Each department acts independently, prioritizing its own departmental goals rather than overall organizational objectives.

Step 2: Evaluating the Need for Coordination:
Coordination addresses three main organizational needs:
1. Growth in Size: Harmonizing efforts as the total number of employees and activities grows.
2. Functional Differentiation: Managing divisions of an enterprise that develop separate departmental identities and conflicting sub-goals. Coordination links these diverse functions to ensure they work toward common objectives.
3. Specialisation: Resolving conflicts among modern technical specialists who may place undue emphasis on their narrow professional perspectives.

Step 3: Concluding the Right Factor:
The conflict described is between two functional departments (Production vs. Sales).
This demonstrates the need for coordination arising from Functional Differentiation.

Step 4: Final Answer:
Thus, the correct choice is option (B).