question_answer

ITC Ltd is a multi-national company engaged in the business of FMCG goods, Mr Anil is currently working in it as the head of its cosmetic products segment. What kind of organisational structure is being followed in ITC Ltd? Mention any three advantages of such structure.

Answer:

ITC Ltd is divided into various segments based on the products in which it deals, therefore it can be said that divisional structure of management is being followed in ITC Ltd. Following are the main advantages of divisional structure: (i) It helps managers to develop varied skills related to a product and facilitates managerial development. (ii) In divisional structure, fixation of accountability and responsibility is easy. (iii) With more initiative and flexibility, decisions are taken much faster in divisional structure.