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| AHSEC CLASS 12 BUSINESS STUDIES |
AHSEC Class 12 Business Studies
CHAPTER-5
ORGANISING
Short Answer Type Questions: Type-1 (Marks -3)
1. What is an organisation?
Ans. Organisation is the process of combining the work of people working in the enterprise for undertaking various duties and responsibilities. Organisation estab lishes relationships among people in the enterprise and co-ordinates their activities in such a way that all the resources are employed for achieving business objectives An organisation is a social unit of people that is structured and managed to meet a need or to pursue collective goals All organisations have a management structure that determines relationships between the different activities and the members, and subdivides and assigns roles, responsibilities and authority to carry out different tasks.
2.What do you mean by organisation structure?
Ans. Organisation structure is a system used to define a hierarchy within an orga nization. It defines each job, its function and where it reports to within the organiza tion. This structure is developed to establish how an organization operates and as sists an organization in obtaining its goals to allow for future growth. The structure is illustrated using an organizational chart.
An organization structure defines how activities such as task allocation coordination and supervision are directed toward the achievement of organizational aims. It can also be considered as the perspective through which individuals see their organization and its environment.
3.What is formal organisation?
Ans. Formal organisation is the structure of relationships created by management for achieving organisational goals. It is an official framework for taking up every activity. Formal organisation is created after a lot of deliberations based on division of activities so that the human group working in the organisation is able to achieve business goals The employers working in the organisation know their relationship among one another and understand about their superiors and subordinates Formal organisational structure clearly spells out the job to be performed by each individual, the authority, responsibility assigned to every individual, the superior subordimate relationship and the designation of every individual in the organisation .
6.What is decentralisation of authority?
Ans. Decentralisation of authority means dispersion of office activities. Dispersal of authority of decision making power to the lower level of management So, decentralisation occurs where the superior, delegates some of his controlling and supervising powers to the subordinates. The necessity of decentralisation arises due to scattered departments and plants, increased volume of activities, diversified nature of products and expansion of business activities. Decentralisation of authority is beneficial because it reduces the burden of top executives and facilitates diversification of activities:
5. What is an informal organisation?
Ans. Informal organisation refers to the relationship between people in an organisation based not on formal hierarchy but on personal attitudes, prejudices, likes and so on. It refers to what people actually do based on procedures and regulations but on some taste, culture etc. People work together because of their personal likes and dislikes. Informal organisations are not created but they appear at their own in a natural way in the formal organisation. The informal organisational structure gets created automatically and the main purpose of such structure is getting psychological satisfaction.
6. Write three characteristics of an organisation.
Ans. Three characteristics of an organisation are -
(i) Division of work The total work of the enterprise is divided into activities and functions. Various activities are assigned to different persons for their efficient accomplishment.
(ii) Common objectives - There are common objectives to be achieved in an organisation. The individual objectives of different persons and departments also lead to the achievement of common organisational objectives.
(iii) Communication-An organisation works with an effective communication system. Every order or information passes on from upward to downward and reactions to such communications go upward.
7. State any three benifits of formal organisation.
Ans. Three benefits of formal organisation are
(i) Better co-ordination-Since duties and responsibilities of each person are specified and relationship among employees are established, there will be a co-ordination.
(ii) Proper evaluation of work- The work to be done by each person is specified, it will be easy to evaluate the performance.
(iii)Helpful in control - The comparison of actual performance with pre-determined objectives helps in controlling the work of employees.
8.Write three difference between authority and responsibility..
Ans. Three difference between authority and responsibility are__
9. Explain any three limitations of functional organisation.
Ans. Three limitations of functional organisation are
(i) Conflict of interest-Every departmental head wants to become a functional empire To satisfy their ego every one demands maximum resources for their department. (ii) Difficulty in interdepartmental co-ordination All departmental heads may work as per their own wish This facilitates co-ordination within the department but it makes inter departmental co-ordination difficult.
(iii) Hurdle in complete development- This system is a hurdle in the way of the complete development of the employees. Each employee specialises only in a small part of the whole job,
10. Explain any three merits of functional organisation.
Ans. Three merits of functional organisation are -
(i) Co-ordination is established All the persons working within a department are specialists of their respective jobs. It makes coordination easier at the departmental level.
(ii) Managerial efficiency is increased It helps in increasing managerial efficiency because of performing the same work again and again.
(iii) Equal weight age to all functions - It ensures that all the functions/activities get equal weight age.
Short Answer Type Questions: Type-II (Marks-4)
1.Explain four barriers to effective delegation.
Ans. Some of the common barriers to effective delegation are as follows
(i) Feeling of insecurity - The top level management sometimes, do not like to delegate the authority to their subordinates because they think that power sharing may create problems.
(ii) Fear of subordinate - Managers who feel comfortable with authority, fear to delegate it. They feel that it reduces their importance and values
(iii) Lack of motivation-Lack of motivational environment discourages subordinates to take responsibility and acccept the authority. So, this type of environment may also be one of the barriers of delegation of authority.
(iv) Superiors attitude - From the view point of superior it is believed that delegation system will reduce his/her importance in the organisation. This attitude of the superior may create the problem for delegating the authority.
2. Explain four points of importance of delegation of authority.
Ans. The four points of importance of delegation of authority are as follows
(i) Employee's development-As a result of delegation employees get more opportunities to utilise their talents. It allows them to develop those skills which help them to perform complex task.
(ii) Motivation of employees - In the delegation of authority, when the manager is sharing his responsibilities and authority with the subordinates it motivates the subordinates as they develop the feeling of belongingness and trust which is shown to them by their superiors.
(iii) Reduces the work load of managers - In delegation the managers are allowed to share their responsibilities and work with the subordinates which help the managers to reduce their work load.
(iv) Basis of Management Hierarchy - Delegation establishes superior - subordinate relationship which is the base for hierarchy of managers.
3.Write four differences between formal and informal organisation.
Ans. Four differences between formal and informal organisation are__
4. Give four points of difference between delegation and the centralisation.
Ans:-
Long Answer Type Questions: Type-1 (Marks -5)
1. Explain the process involved in Organising.
Ans. The process of organising consists of following steps
(i) Identification and division of work The organising function begins with the division of total work into smaller units. Each unit of total work is called a job. The division of work into smaller jobs leads to specialisation because jobs are assigned to individuals according to their qualification and capabilities
(ii) Grouping the jobs and Departmentalisation After dividing the work into smaller jobs, related and similar jobs are grouped together and put under one department. The departmentation and grouping of jobs can be done by the organisation in the following ways:
(a) Functional departmentation - Under this method, jobs related to common function are grouped under one department
(b) Divisional departmentation When an organisation is producing more than one type of products then, they prefer divisional departmentation. Under this jobs related to one product are grouped under one department.
(iiI) Assignment of Duties-After dividing the organisation into specialised departments each individual working in different department is assigned a duty matching to his skill and qualifications.
(iv) Establishing Reporting Relationship - After grouping the activities in different departments the employees have to perform the job and to perform the job every individual needs some authority. So, in the fourth step of organising process all the individuals are assigned some authority matching to the job they have to perform.
2.What are the measures for effective delegation of authority?
Ans. To make delegation more effective, there are certain important guides, rules and principles. These are as follows
(i) Clarity of Delegation- Whether specific or general, written or unwritten, delegation of authority must be clear in terms of its contents, scope etc. This principle also implies defining in clear terms the horizontal and vertical relationships of the position of each subordinate to other positions in the organisation.
(ii) Delegation to be consistent with Results expected- Before proceeding with actual delegation of authority to a subordinate, a manager should know the jobs and results expected of such delegation. Only that much of authority which is sufficient to accomplish the results should be delegated. This principle operates on the reason that goals are set, plans are made, and jobs are set upto accomplish or implement those goals.
(iii) Responsibility cannot be delegated - The obligation to accomplish the assigned task is absolute and is not partitioned when authority is delegated to a subordinate. The chief executive even after delegation remains accountable to the board of directors for management and supervision of the whole of the enterprise.
3.What are the steps in the process of delegation?
Ans. The steps in the process of delegation are as follows
(i) Prepare-Employees can't deliver quality results if the task delegated to them isn't fully thought out, or if expectations keep changing. Take the time and develop the discipline to map out exactly what you're asking for.
(ii) Assign-Once you've taken the time to map out exactly what you're looking for, you need to convey that information to your employees.
(iii) Confirm understanding-One of the common mistakes made in delegating is assuming that employees understand what you want, rather than making sure that they do.The best way to confirm understanding is to ask your employees to paraphase the request or assignment in their own words.
(iv) Confirm commitment - The manager often assume that employees have accepted the tasks they have been given Confirm that employees are committed to the expected results, and to process that's been set out and that their overall goals for the task are aligned with yours
(v) Avoid "reverse delegating" - Many managers are extremely over worked. Sometimes, this is because their employees are better at delegating than they are Managers often end up completing tasks they had delegated to others, because those tasks somehow end up back on their plate. It is called 'reverse delegating.
4.What are the barriers to effective delegation?
Ans. Some of the common barriers to effective delegation are as follows -
(i) Feeling of insecurity - The top level management sometimes, do not like to delegate the authority to their subordinates because they think that power sharing may create problems.
(ii) Fear of subordinate - Managers who feel comfortable with authority, fear to delegate it. They feel that it reduces their importance and values.
(iii) Lack of motivation-Lack of motivational environment discourages subordinates to take responsibility and acccept the authority So, this type of environment may also be one of the barriers of delegation of authority.
(iv) Superiors attitude - From the view point of superior it is believed that delegation system will reduce his/her importance in the organisation. This attitude of the superior may create the problem for delegating the authority.
5. "Authority can be delegated but responsibility can't." Explain the statement.
Ans. Authority means the power to take decision. This has to be delegated to person to whom is assigned. It means authority can be delegated There are two meaning of responsibility. The responsibility far can be delegated but responsibility to or Accountability can never be delegated. In the statement given in the question the meaning of responsibility is Responsibility to that can not be delegated. It means the person who delegates authority remains accountable to his own boss for the work performance of his subordinates.
6."Delegation of authority is necessary in all types of organisation." Explain reasons in support of your answer.
Ans. Delegation of authority is necessary in all types of organisation. The importance of delegation in organisation are
(i) Relief to top executives - Delegation reduces the burden of senior executives by transferring the routine work to subordinates. By delegating authority a manager secures the co-operation of his sub-ordinates.
(ii) Scalar chain - Delegation of authority creates a chain of superior - subordinate relationship among managers. It provides meaning and content to managerial job
(iii) Specialisation-Through delegation an executive can assign jobs to his subordinates according to their abilities and experience.
(iv) Motivation-Delegation promotes job satisfaction and motivates the sub-ordinates to improve their performance. Delegation promotes sense of initiative and responsibility among employees.
(v) Employee's development-As a result of delegation employees get more opportunities to utilise their talents. It allows them to develop those skills which help them to perform complex task.
Long Answer Type Questions: Type - 1 (Marks - 6)
1. Explain the terms 'authority', 'responsibility' and 'accountability".
Ans. Authority' means power to take decision. To carry on the responsibilities every employee need to have some authority. So, when managers are passing their responsibilities to the they pass some of the authority to the subordinates. The delegating authority is the second step of organising process. While sharing the authority managers keep in mind that the authority matching to the responsibility should only be delegated. They shall not pass all their authority to their subordinates.
Responsibility' means the work assigned to an individual. It includes all the physical and mental activities to be performed by the employees at a particular job position. The process of delegation begins when manager passes on some of his responsibilities to his subordinates which means responsibility can be delegated.
'Accountability refers to make sure that the employees or subordinates perform their responsibilities in their expected manner, the accountability is created. It means subordinates will be answerable for the non-completion of the task, creating accountability is the third and the final step of delegation process. The accountability cannot be passed or delegated. It can only be shared with the subordinates.
2. What is meant by organising? Explain the importance of organising.
Ans. Organising can be defined as "identifying and grouping different activities in the organisation and bringing together the physical, financial and human resources to establish most productive relations for the achievement of specific goal of organisation." Importance of organising are as follows
(i) Optimum utilization of resources - In the organising function there are very few chances of duplication of work or over-lapping of work because the jobs are assigned to different individuals by clearly defining the job description document.
(ii) Role Clarity-In the organising function the employees are assigned different jobs and the managers clearly define the jobs. The jobs are defined on the written document called job description which clearly spells out what exactly has to be done in every job.
(iii) Clarity in working relationship - In the organising function it is clearly defined that what all and how much power and authority is enjoyed by different individuals or managers.
(iv) Expansion and growth-With optimum utilization of resources and proper division of work and departmentation, companies can easily meet the challenges and can expand their activities in a planned manner. six points which highlights the importance of decentralisation in an organisation.
Ans. Six points which
3.Explain in brief any highlights the importance of decentralisation in an organisation are -
(i) Develop initiative among subordinates-passing of authority at middle and lower level shows the trust and faith of top level in their subordinates and this trust and faith motivate the employees working at different levels as they are allowed to take
decisions without seeking the approval of superiors.
(ii) Quick decision-making - In the decentralisation process, decision making is not restricted in few hands only but decision-making power is entrusted to all the managers who are taking actions or performing the activities.
(iii) Relief to top level management - In the process of decentralisation top level managers are not over burdened with the responsibilities and authority as they systematically pass the authority and responsibilities at different levels and they become free to concentrate on core an important issues.
(iv) Improved team work-In decentralisation all the managers and employees are sharing the decision-making powers, all are given some kind of autonomy and freedom of action. This sharing of decision and freedom of action integrate the employees as one team and develop team spirit among the employees.
(v) Better control-In decentralisation employees working at different levels take their own decisions and they are personally accountable for their decisions, they cannot pass the blame to their superiors.
(vi) Facilitates growth - Decentralisation grants more autonomy or freedom to lower level. This helps the subordinates to do the work in the manner best suited for their department.
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CHAPTER-WISE SOLUTION FOR BUSINESS STUDIES
SL.NO | CHAPTER | LINK |
| 1 | Nature and Significance of Management | Click here |
| 2 | Principles of Management | Click here |
| 3 | Business Environment | Click here |
| 4 | Planning | Click here |
| 5 | Organising | Click here |
| 6 | Staffing | Click here |
| 7 | Directing | Click here |
| 8 | Controlling | Click here |
| 9 | Business Finance | Click here |
| 10 | Financial Market | Click here |
| 11 | Marketing Management | Click here |
| 12 | Consumer Protection Act. | Click here |
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