Very Short Answer type Chapter Organising Class 12 Business Studies
Question: Name the function of management which co-ordinate the Physical, Financial, and Human resources and establishes productive relations among them for achievement of specific goals.
Answer: Organizing
Question: Name and explain the two steps in the process of organizing which comes after identification and division of work and departmentation.
Answer: Assignment of duties and establishing reporting relationships.
Question: Aman Ltd. is manufacturing Toys and has Production Sales, Purchase and finance Department, which type of organization structure would you suggest to them? State any three advantage of this organization structure.?
Answer: I would suggest functional structure for Aman ltd.
Question: Hindustan Ltd. is manufacturing computers, soaps and textile . Which type of organizational structure would suit the requirement of such organization? State any three advantages of this organization structure?
Answer: Divisional Structure would suit the requirement of Hindustan ltd.
Question: It is a System of consciously coordinated activities of two or more person towards a common objectives. Mention this system of organization and explain its two features.
Answer: Formal organization
Question: It is a network of personal and social relations not established or required by the formal organization but arising spontaneously as people associate with one another. Name this organization and give its three advantages.
Answer: Informal organization
Question: The directors of Narmada Ltd. An organization manufacturing computer have asked their marketing manager to achieve a target rate of 100 computers per day. The marketing manager has delegates the task to his deputy sales manager working under him. The deputy sales managers could not achieve he target. Is the marketing manager responsible for the failure of his deputy sales manager? Explain in brief , the relevant principle in support of your answer.?
Answer: Yes, marketing manager is responsible for non- achievement of he target sales to his.
Question: The Director of Kamal Ltd, an organization manufacturing computer want to double the sales and given this responsibility to their sales manager. The Sales Manager has no authority either to increase , sales expense or appoint new salesman. Hence, he could not achieve this target. Is the sales manager responsible for not achieving the target? Explain in brief , the relevant principal in support of your answer.?
Answer: No, sales manager is not responsible for not achieving the target. The principle involved is purity of authority and responsibility.
Question: It refer to the systematic delegation of authority from top management to the lower level managers. Mention the name of it.
Answer: Decentralization.
Question: “If we delegate the authority, we multiply it by two if we decentralize it, we multiply it by many “ how?
Answer: Scope of delegation of authority is limited as it is confined to a manager and his immediate subordinate in work unit. Scope of decentralization. It involves systematic delegation of authority at all levels and in all functions of the organization. It is an extension of delegation to the lowest levels in the organization.
Question: The employee of ABC Ltd. Take part in volleyball matches on Sunday. Name the types of organization formed.
Answer: Informal organization.
Question: “The first Step in the process of organizing is identification and division of work” Why is he work divided into manageable activities?
Answer: The work is divided into manageable activities so that duplication of efforts and resources can be avoided and the burden of work can be shared among the employees.
Question: While allocating work to various employees how the work must be assigned?
Answer: The work must be assigned to those who are best fitted to perform it well.
Question: Which Function of management is concerned with building a stable frame work or structure of various parts of an enterprise?
Answer: Organizing.
Question: How can department or division be created?
Answer: It can be created on the basis of-
a) territory and b) products
Question: How does an informal organization emerge?
Answer: Informal organization emerges from within the formal organization when people interact beyond their officially defined roles.
Question: Name the organization which has the benefit of Easy to fix responsibility?
Answer: Formal organization.
Question: Name the type of organization which does not have predetermined objectives?
Answer: Informal organization.
Question: A Fashion design house has the following main job:-
(1) Manufacturing (2) Finance (3)Marketing (4) Personal (5) Research and Development .
Which organizational structure will you prefer for this type of a company and why?
Answer: Functional organizational structure will be suitable.
Question: Rina runs a shoe manufacturing factory. She wants to expand her business. For expansion she contemplated to enter into the manufacturing of leather bags and western formal wear apart from the running business of shoes. By doing this her company will be able to provide many products to working women under one roof. Which organization structure will you suggest her and why?
Answer: In this situation, Divisional Structure will be suitable as it provides equal importance to all products. Also describe the advantages of divisional organization structure.
Question: Name the activity which increase the importance of the role of subordinates?
Answer: Decentralization.
Question: For which kind of enterprises functional structure is more suitable?
Answer: When the size of the organization is large, has a diversified activities and operations require a high degree of specialization.
Question: Why does informal organisation exist within the framework of formal organisation? Give any two reasons for the emergence of informal organization.
Answer: To fulfill the social needs of the members. 2. To develop the sense of belongingness in the organisation.
Question: A manager is of the view that he is not responsible for the quality of work that he has delegated to his subordinate. “Do you agree with his view points? Explain.
Answer: No, because delegation does not relieve the manager from the accountability.
Question: In a large organisation, why is decentralization considered almost essential?
Answer: To cope up the complexities of technological, competitive and other changes in the business environment. It provides greater flexibility & freedom of action to managers at all levels to tackle problems quickly and competently.
Question: “Informal organisation cannot be altogether eliminated”. Do you agree with this statement? Give reasons in support of your answer.
Answer: True because
• Flexibility in informal group
• Availability of an extra channel of communication i.e. grapevine.
• Less risk of confrontation.
Question: Sushma Ltd. is engaged in the production of marble articles. The members of the org. have friendly relations among them. What type of org. is Sushma Ltd.? Explain any 3 benefits of developing such an org.
Answer: Informal Organisation. (Its advantages to be mentioned)
Question: In an electrical goods manufacturing Co. there are four main activities. Marketing, Production, Finance and Personnel. The General Manager is planning to structure the organisation. Which type of org. goal structure should be adopt and why? Give two reasons.
Answer: Functional structure (Its benefits may be mentioned)
Question: Why does organising function earn due importance in the context of effective mgt?
Answer: Organising is a means for translating plans into action.
Question: The first step in the process of organising is identification and division of work? Why is the work divided into manageable activities?
Answer: The work is divided into manageable activities so that duplication of efforts and resources can be avoided & the burden of work can be shared among the employees.
Question: How can departments or divisions be created?
Answer: On the basis of (a) Territory (b) Products.
Question: How does organizing lead to specialization?
Answer: Organising leads to a systematic allocation of jobs amongst the work force. A worker performs a specific job on a regular basis. Repetitive performance of the job allows him to gain experience in that area & leads to specialization.
Question: How does organizing lead to optimum utilization of resources?
Answer: The proper assignment of jobs avoids overlapping or duplication of work. Avoidance of duplication of work helps in preventing confusion & minimizing the wastage of efforts & resources.
Question: Define span of management.
Answer: Span of mgt. refers to the number of subordinates that can be effectively managed by a superior.
Question: How is span of management related to organisation structure?
Answer: The span of management to a large extents, gives shape to the organisation structure. This determines the levels of mgt. in the structure.
Question: Which tern denotes “the number of subordinates that can be effectively managed by superior?
Answer: Span of management
Question: Which type of organizational structure is suitable for high degree of specialization?
Answer: Functional structure
Question: Whether decentralization increases the importance of subordinates or reduces it?
Answer: Increases
Question: How does the concept ‘authority’ arise?
Answer: Authority arises, from the established ‘scalar chain’ which links the various jobs positions & levels of an organisation.
Question: What is the source of origin of ‘Responsibility’?
Answer: Superior subordinate relationship.
Question: “For effective delegation , the authority granted must be commensurate with the assigned responsibility” Why?
Answer: Because if granted is more than responsibility, it may lead to misuse of authority and if responsibility is more than authority it may make a person ineffective.
Question: How does delegation facilitate employee development?
Answer: Delegation empowers the employees by providing item with the chance to use their skills, gain experience and develop themselves for higher positions.
Question: How does delegation facilitate better co-ordination?
Answer: Clarity in reporting relationships help in developing & maintaining effective co-ordination amongst the departments, levels & functions of mgt.
Question: As an organisation grows in size and complexity it becomes centralized or decentralized? Why?
Answer: Decentralised.(Features of decentralization to be mentioned.
Question: Why is it said that decentralized in spite of its benefits, should be applied with caution ?
Answer: Because it can lead to organizational disintegration if the departments start to operate on their own guidelines which may be contrary to the interest of the organisation.
Question: Why is it easy to fix responsibility in formal organisation?
Answer: Because rules and responsibilities as well as the interrelationship job position are made clear.
Question: Which network of interaction facilitates emotional and mutual objectives to be fulfilled in an organisation?
Answer: Informal organisation
Question: Which organisational structure is suitable for a multiproduct manufacturing company?
Answer: Divisional Structure
Question: Which organizational structure is suitable for a uni-product manufacturing company?
Answer: Functional structure
Question: Name the concept which reduces the work load of a manager.
Answer: Delegation of Authority’ reduces the work load of a manager.
Question: Define span of control.
Answer: It refers to number of sub-ordinates under one superior.
Question: In ABC Ltd. are the decisions are taken by top level management only. Which policy is followed by organisation? Explain the drawback of this organisation.
Answer: The policy followed is centralization. Drawback is delay in decision making.
Question: Delegation of authority is based on elementary. Principal of division of work. Explain.
Answer: Delegation means when superior divides some of his work and authority and assigns to his Sub-ordinates to reduce his burden. Division of work also means dividing the task among various individuals. So as to reduce the burden and promote efficiency.
Question: An organisation is manufacturing medicines cosmetics, textiles and soaps. What kind of organizational structure is suitable for this organisation and why?
Answer: Must adopt divisional organisational structure. In this type of organizational structure, all activities related to one product are grouped under one department.
Question: “Authority can be delegated but accountability cannot be”. Explain.
Answer: Yes it is correct. This is according to the principle of absolute responsibility. The accountability remains with the manager even after delegating the work. Give an eg.
Question: “The existence of informal organisation depends on the formal organisation”. Comment.
Answer: Informal organisation refers to network of social and friendly relations established between the employees working at different job positions. The network of these job positions is known as formal organisation Hence informal organisation is created within formal organisation.
Question: “A manager is of view that he is not responsible for the quality of work that he has delegated to his subordinate”. Do you agree with this view point ? Justify your answer.
Answer: I do not agree because authority can be delegated but responsibility can never be delegated. This is according to the principle of absolute responsibility wherein the manager retains the ultimate responsibility of the Completion of task.
Question: The directors of Narmade Ltd. have asked their marketing manager to achieve a target sale of 100 units per day. The marketing manager has delegated the task to his deputy sales manager working under him. The deputy sales manager could not achieve the target. Who is responsible for non-completion of task? Explain in brief the relevant principal.
Answer: The marketing manager is responsible for non-completion of task. Since authority can be delegated by responsibility cannot be delegated as per the principle of absolute responsibility.
Question: Bhuvan & Co. are running a shoe manufacturing company successfully. So they planned to expand their business activities by adding more line of product ie. leather bags, belts and garments. Which type of structure would you recommend after expansion and why?
Answer: Presently the company has a functional structure since it is a uniproduct company. But on addition of more live of products, it will go for divisional structure since it is suitable for a multiproduct company (List advantages of divisional structure).
Short Answer Type Questions Chapter Organising Class 12 Business Studies
Question: How does informal system work.
Answer: 1. An informal system works in an informal organisation without any formalities.
a. An informal organisation originates from within the formal organisation as a result of personal interaction among employees.
b. The standards of behaviour evolve from group norms rather than officially laid down rules and regulations.
c. Independent channels of communication without specified direction of flow of information are developed by group members.
Question: Write notes on functional org.
Answer: A functional structure is an organizational design that groups similar or related jobs together.
Managing Director
Personnel Marketing R & D Purchasing
• functional structure in formed by grouping together the entire work to be done into major functional department.
• All deptt are report to a coordinating head
• These dept may further be divide into sections.
Question: Explain the importance of organizing as a function of mgt.
Answer: The importance of organizing may be summarise as follows :-
(a) Benefits of specialization : The activities are grouped very carefully into specialized jobs on the basis of similarity. repetitive performance of a particular task leads to specialization.
(b) Clarity in working relationships : The jobs of managers and non managers are clearly defined & differentiated.
(c) Effective administration : Organising provides a clear description of a jobs and related duties. This helps to avoid confusion and duplication.
Clarity in working relationship enables proper execution of work. This brings effectiveness in administration.
(d) Source of support and security improves job satisfaction : Organising is a source of support, security and satisfaction to managers and employees in performing their assigned tasks. It recognizes the status levels of members; each one of the members enjoys a definite status and position in the organisation.
In a sound organisation every individual is assigned the job for which he is best suited. The assignment of right jobs to right persons improves job satisfaction among the employees.
(e) Optimum utilization of resources : A sound organisation helps In the optimum utilization of technological and human resources by avoiding duplication of work and overlapping of efforts.
(f) Adaptation of change : The process of organizing allows a business enterprise to adapt itself according to changes in the business environment. It allows the organisation structure to be suitably modified and the revision of interelationships amongst managerial levels to pave the way for a smooth running of the business.
(g) Development of personnel : Organising stimulates creativity amongst the managers. Effective delegation allows the managers to reduce their workload by assigning routine jobs to their subordinates. The reduction in workload by delegation gives them the time to explore areas for growth and opportunity to innovate, thereby strengthening the company’s competitive position.
(h) Expansion and growth : Organising helps in the growth and diversification of an enterprise. It allows a business enterprise to add more job positions, departments and even diversify their product lines.
Conclusion : Organising is a process by which the manager—
• brings order out of chaos,
• removes conflict among people over work or responsibility, and
• creates an environment suitable for teamwork.
Question: What do you mean by divisional organization? Explain its characteristics.
Answer: In large diversified organizations, activities and personnel are grouped into a number of divisions on the basis of different products manufactured or geographical areas.
• Each unit or division has divisional manager responsible for performance and who has authority over the unit or the division.
• Each division is multi-functional because within each division functions like production, marketing, finance, purchase, etc., are performed together to achieve a common goal.
• Further, each division works as a profit center where the divisional head is responsible for the profit loss of his divisional.
For example, a large company may have divisions like cosmetics, garments, footwear, etc
Suitability
(i) Divisional structure is suitable for those business enterprises where a large variety of products are manufactured using different productive resources.
(ii) When an organisation grows and needs to add more employees, create more departments and introduce new levels of management, it will decide to adopt a divisional structure.
Question: Give any three demerits of divisional organisation.
Answer: Demerits of Divisional structure
(i) Departmental conflicts : Conflict may arise among different divisions with reference to allocation of funds and further a particular division my seek to maximize its profits at the cost of other divisions.
(ii) Costly : It may lead to increase in costs since there may be a duplication of activities across products. Providing each division with separate set of similar functions increases expenditure.
(iii) Ignoring of organizational interests : It provides managers with the authority to supervise all activities related to a particular division. In course of time, such a manager may gain power and then he may ignore organizational interests.
Question: Differentiate between formal and informal organisation on the basis of formation, purpose, structure and communication.
Answer:
Question: State any 3 circumstances in which functional organisation is more suitable.
Answer: Functional structure is most suitable when
(i) the size of the organisation in large.
(iii) it has diversified activities.
(iii) operations require a high degree of specilisation.
Question: Explain how organizing helps in ‘specialisation’ and co-ordination.
Answer: Organising helps in specialization through division of work, departmentalization, assignment of duties & establishing reporting relationships.
Question: Explain the meaning of formal organisation.
Answer: Forma org. refers to the org. structure which is designed by the mgt. to achieve organizational goals.
Question: How is accountability related to authority? Explain.
Answer: Refer Ans. 10 (S.A.)
Question: Delegation of authority is based on the elementary principle of division of work. Explain.
Answer: In division of work, the work is divided into small tasks. Same way in delegation, the manager divides some of his work & authority among his subordinates. No manager can perform all the functions himself. To get the work done efficiently and in a specialized manner, the manager divides the work among his subordinates according to their qualification & capability.
Question: Distinguish between decentralization and delegation on the basis of nature, control, need & responsibility.
Answer:
Question: Authority can be delegated but responsibility cannot. Explain.
Answer: Authority can be delegated but responsibility cannot. Delegation does not mean abdication. The manager shall still be accountable for the performance of assigned tasks. The manager cannot escape from the responsibility for any default or mistake on the part of his subordinates.
Thus irrespective of the extent of delegated authority, the manager shall still be accountable to the same extent as before delegation.
Question: Delegation of authority is necessary in all types of organizations. Explain with reasons in support.
Answer: Delegation of authority is necessary in all types of organizations. Reasons can be seen through the importance.
The importance of delegation of authority may be outlined as follows :
1. Reduced workload of managers : Delegation of authority permits a manager to share his workload with his subordinates. By passing on the routine work to the subordinates, the manager is able to concentrate on more important aspects of his subordinates and is able to concentrate on policy matters and decision-making. This would increase his effectiveness.
2. Effective management : The manager who delegates authority can perform much more than the one who does not. This is because the manager can get some work done by his subordinates and is able to concentrate on policy matters and decision-making. This would increase his effectiveness.
3. Motivation of employees : Delegation implies grant of authority to the subordinates along with responsibility for work. A result, subordinates have a sense of recognition. They are motivated to work for higher performance. They do their job to the best of their abilities and skills.
4. Employee development : As a result of delegation, employees get more opportunities to utilize their talent. It allows to develop those skills which will improve their career prospects. It makes them better leaders and decision makers. Thus, delegation helps by preparing better future managers.
5. Facilitates organizational growth : Delegation helps in the expansion of an organisation by providing a ready work force to take up leading positions in new ventures. Trained and experienced employees are able to play significant roles in the launch of new projects for organizational growth.
6. Quick decision-making : The subordinates are granted sufficient authority to take decisions. They need not go to their superiors again and again for taking decisions concerning the routine matters. This increases the speed of decision-making.
Important Notes and Questions for NCERT Class 12 Business Studies Organising
Organising: Concept and importance , Organising Process , Structure of organisation- functional and divisional, Delegation: concept, elements and importance, Decentralization: concept and importance. Organising is the process of defining and grouping the activities of the enterprise and establishing authority relationships among them for the realisation of the desired goals. “Hierarchy is the ranking of job positions on the basis of relative roles and responsibilities.”
Steps Involved in the Process of Organizing •Identification and division of work is done in accordance with predetermined plans to avoid duplication of activities and ensure that the burden of work is being shared among the employees.
• Departmentalisation involves grouping of similar activities into departments, units, sections etc. using several criteria as a basis to facilitate specialization.
• Assignment of duties is done to the members as per their job positions. Once departments have been created, each of them is placed under the charge of an individual.
• Establishing reporting relationships While assigning jobs, each member is told that from whom he/she has to take orders and to whom he/she will be accountable. The establishment of such clear reporting relationships help to create a well defined hierarchical structure. Importance of Organising
• Organising offers benefits of specialisation as it leads to a systematic allocation of jobs amongst the workforce as the specific employees are assigned specific job on a regular basis.
• It brings clarity in working relationships by establishing a hierarchical order thereby enabling the fixation of responsibility and specification of the extent of authority to be exercised by an individual.
• It leads to optimum utilisation of resources through proper allocation of jobs, and minimising the wastage of resources and efforts.
• It facilitates adaptation to change and helps to create a stable organisation by incorporating changes in the organisation structure as per the needs of the changing environment.
• It leads to effective administration by providing a clear description of jobs and related duties which helps to avoid confusion and duplication.
• It fosters development of personnel as delegation helps to build the ability of the subordinate to deal effectively with challenges and helps them to realise their full potential.
• It leads to expansion and growth of an enterprise by enabling it to deviate from existing norms and taking up new challenges.
ORGANISATIONAL STRUCTUREThe organisational structure can be defined as the framework within which managerial and operating tasks are performed. Types of Organisational Structures 1. Functional Structure 2. Divisional Structure Features of Functional Structure
• A functional structure is an organisational design that groups similar or related jobs together on the basis of functions like production, finance etc.
• Each department hasa functional manager responsible for performance and who has authority over the department.
• All departments are under the charge of a coordinating head.
• These departments may be further divided into sections. Features of Divisional Structure
• A divisional structure is an organisational design that groups similar or related jobs together on the basis of functions. Different products manufactured in the organisation. Structure comprise of separate business units or divisions.
• Each department hasa divisional manager responsible for the profit or loss of his division.
• Each division is multi-functional because within each division functions like production, marketing, finance, purchase etc., are performed together to achieve a common goal. Advantages of Functional Structure
• A functional structure emphasises on specific functions and ensures that different functions get due attention.
• Due to the similarity in the tasks being performed, it promotes control and coordination within a department.
• It results in increased profit with the improvement in managerial and operational efficiency.
• By focusing only on a limited range of skills, it facilitates the training of employees.
• It leads to minimal duplication of effort and leads to economies of scale thereby reducing cost. Advantages of Divisional Structure
• Product specialisation helps a divisional manager to gain experience in all functions related to a particular product and this prepares him for higher positions.
• It providesa proper basis for performance measurement and also helps in fixation of responsibility in cases of poor performance of the division as revenues and costs related to different departments can be easily identified.
• It leads to faster decision making, promotes flexibility and initiative because each division functions as an autonomous unit.
• It facilitates expansion and growth as new divisions can be added just by adding another divisional head and staff for the new product line without interrupting the existing operations
Disadvantages of Functional Structure
Delegation of Authority: Definition Delegation of authority merely means the granting of authority to subordinates to Elements Of Delegation
1. Authority
2. Responsibility
3. Accountability.
Importance of Delegation
• It leads to effective management as by relieving the employees from doing routine work, it provides them with time to excel in new areas.
• It promotes employee development as they are entrusted with more opportunities to utilise their talent, perform complex tasks and assume those responsibilities which are likely to improve their career prospects.
• It helps to motivate employees as when a subordinate is entrusted with a task, it is not merely the sharing of work but involves trust on the superior’s part and commitment on the part of the subordinate.
• It facilitates the growth of an organisation as it seeks to enrich the quality of manpower and widens the scope of using internal recruitment by providing them with training and experience through exposure to varied jobs.
• It provides the basis of management hierarchy as it establishes superior-subordinate relationships, which are the basis of hierarchy of management
• It facilitates better coordination amongst the departments, levels and functions of management by providing clarity in reporting relationships.
DECENTRALISATON
Decentralisation: Definition Decentralisation refers to systematic dispersal of authority to the lowest level, except that which can be exercised at central points.
Need for Decentralisation
As an organisation grows in size and complexity, the departmental or branch heads are directly and closely involved with certain operations and are likely to have more knowledge about them as
compared to the top management which may be associated with individual operations only indirectly.
Importance of Decentralisation
• It seeks to develop initiative in the subordinates by promoting self-reliance and confidence amongst them and also helps to identify those executives who have the necessary potential to become dynamic leaders.
• It provides relief to top management as the subordinates are allowed to operate independently within their area of jurisdiction. Consequently, the need for direct supervision is reduced.
• It facilitates quick decision making as the employees are allowed to act independently within their are a of jurisdiction without consulting others.
• It develops managerial talent for the future by providing the employees with the necessary training and experience through exposure to varied challenging jobs and also facilitates identification of those employees who may and those who may not be successful in assuming greater responsibility.
• It facilitates growth of the organisation by increasing its productivity and profitability through assigning greater autonomy to the lower levels of management as well as divisional or departmental heads.
• It facilitates better control by ensuring continuous evaluation of performance at each level and the contribution of each department so that they can be individually held accountable for their results.
MCQs for NCERT Class 12 Business Studies Organising....
Question: Name the process which co-ordinates human efforts, assembles resources and integrates both into a unified whole to be utilised for achieving specified objectives,
(a) Management
(b) Planning
(c) Organising
(d) Directing
Answer: c.
Question: It is defined as the framework within which managerial and operating tasks are performed
(a) Span of management
(b) Organisational structure
(c) Informal organisation
(d) None of the above
Answer: b.
Question: It refers to the number of subordinates that can be effectively managed by a superior,
(a) Organisational structure
(b) Informal organisation
(c) Span of management
(d) None of the above.
Answer: c.
Question: Paras Limited is a company dealing in metal products. The work is mainly divided into functions including production, purchase, marketing, accounts and personnel. Identify the type of organisational structure followed by the organisation
(a) Functional structure
(b) Relational structure
(c) Divisional structure
(d) None of the above.
Answer: a.
Question: Under this type of organisational structure, manpower is grouped on the basis of different products manufactured.
(a) Divisional structure
(b) Functional structure
(c) Network structure
(d) Matrix structure.
Answer: a.
Question: Rishabh has joined as a Creative Head in an entertainment company. He always ensures that the work has been divided into small and manageable activities and also the activities of similar nature are grouped together. Identify the related step in organising process being mentioned in the above lines
(a) Identification and division of work
(b) Departmentalisation
(c) Assignment of duties
(d) Establishing reporting relationships.
Answer: b.
Question: Identify the correct sequence of steps to be followed in an organising process.
(a) Departmentalisation, Establishing reporting relationships, Assignment of duties, Identification and division of work
(b) Identification and division of work, Departmentalisation, Assignment of duties, Establishing reporting relationships.
(c) Identification and division of work, Assignment of duties, Departmentalisation, Establishing reporting relationships
(d) Identification and division of work, Establishing reporting relationships, Departmentalisation, Assignment of duties.
Answer: b.
Very Short Answer type Chapter Organising Class 12 Business Studies
Question: Name the network of social relationship that arises spontaneously due to interaction at work .
Answer: Informal organization
Question: What is the type of organization where the decision making authority lies with the top management.
Answer: Centralisation
Question: What is span of management?
Answer: Number of subordinates that can be managed efficiently by superior.
Question: What is the form of organization known for giving rise to rumours?
Answer: Informal.
Question: A company has its registered office in Delhi, manufacturing unit at Gurgaon & marketing & sales department at Faridabad. The company manufactures the consumer products. Which type of organization structure should it adopt to achieve its targets.
Answer: Functional organization structure.
Question: Name the function of management that initiates implementation plans by clarifying jobs & working relationships.
Answer: Organising.
Question:In an electrical goods manufacturing company,there are 4 main activities-marketing,production,finance & personnel. The general manager is planning to structure the organization. Which type of organization structure should be adopt and why? Give two reasons.
Answer: In the given situation the general manager should go for functional organization structure. The reason for suggesting such an organization structure are:
a) The firm is dealing in electrical goods which requires services of the professionally trained experts, and
b) All the activities of similar nature will be placed under one ordination head, this will facilitate specialization as well as standardization.
Question: “If we delegate authority, we multiply it by two: If we decentralize it, we multiply it by many. Name the two concepts to which this statement is related?
Answer: a) Delegation of authority b) Decentralization.
Question: “A Manager is of the view that he is not responsible for the quality of work that he has delegated to his subordinate.” Do you agree with his view point? Justify you answer by giving proper agreements.
Answer: Hint: Statement is incorrect as the principle of absoluteness of responsibility is violated.
Question: A Manager revises the production target from 3000 kg per month to 6000 kg per month. But the authority to purchase raw material was not given by the manager. Therefore, revised production target could not be achieved. Who is responsible?
Answer: Hint: The Manager is responsible because responsibility has been created without granting authority. It violates the principle of parity of authority and responsibility.
Question: Kavita runs a factory manufacturing ready made clothes. The business has been doing well and she intends to expand the business by diversifying the business into ladies foot wears, thereby keeping her company growing. Which type of structure would you recommend her for expanding organization? Give two reasons in support of your answer.
Answer: She should adopt ‘Divisional organizational structure’ for expanding her business because of the following reasons:
i) Product specialization enhances various skills in a divisional head .
ii) Easy to fix responsibility and hold divisions accountable for their results
Question: the marketing manager of abha ltd an organization manufacturing motor cycles is asked to achieve a target sale of 200 motor cycles per day . he delegates the task to 20 sales managers working under him. Five of the sales managers could not achieve their respective targets. Is the marketing manager responsible? Explain in brief the relevant principal in support of your answer.
Answer: yes the marketing manager is responsible for it.
Here the principal of absoluteness of responsibility will apply.
