In a manufacturing concern division of work into key functions will include production purchase mark...........

Business Studies (CUET) NATURE SIGNIFICANCE OF MANAGEMENT

In a manufacturing concern, division of work into key functions will include production, purchase, marketing, accounts, and personnel. These departments may be further divided into sections. Which type of structure is highlighted here?

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CUET BUSINESS STUDIES Previous Year Paper (2022)

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Divisional structure

Functional structure

Rational structure

Organisational structure

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Explanation:

A Functional Structure is a type of organisational structure where the entire organisation is divided into smaller groups based on specialised functional areas such as production, marketing, finance, human resources, etc.

In the given case:

The division of work into key functions like production, purchase, marketing, accounts, and personnel indicates that the company is organising its departments based on functions.
Each department focuses on one specialised activity, which improves efficiency and expertise.

Why other options are incorrect:

Divisional structure: It is used when organisations divide work based on products, regions, or markets.
Rational structure: This is not a recognised organisational structure in business studies.
Organisational structure: This is a broad term that refers to any structure, not a specific type.

Hence, the correct option is B: Functional structure.