\nDelegation<\/td>\n | It cannot be delegated entirely.<\/td>\n | It cannot be delegated at all.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Question 9. \nGive the meaning of \u2018decentralisation\u2019. (All India 2018, 2016; Foreign 2016) \nAnswer: \nDecentralisation refers to the systematic effort to delegate to the lowest level, all authority except which can be exercised at the central point.<\/p>\n Question 10. \nZamon Ltd. is manufacturer of electronics goods based in Pune. On one hand, it deals in items like books, music instrumets, videotapes etc. and on the other hand, it deals in laptops and mobile phones.<\/p>\n The company had a functional structure with separate heads for production, marketing and finance. All the functional heads were looking after the products, hut at times their activities overlapped. This led to problems related to coordination and inter departmental \nconficts. To facilitate specialisation Ramit, the CEO of the company decided to group hooks, music instruments, videotapes etc. under \u201cMedia\u2019 and laptops and mobile phones under \u2018consumer electronics\u2019. While doing so Ramit has performed a step in the process of one of the functions of management. Identify the step. (Compartment 2018) \nAnswer: \nThe step performed by the CEO is departmentalisation (second step of organising function of management.)<\/p>\n <\/p>\n Question 11. \nDifferentiate between \u2018Formal\u2019 and \u2018Informal\u2019 organisation on the basis of \u2018Origin\u2019. (Delhi 2017) \nAnswer: \n‘Formal’ organisation arises as a result of company rules and policies and ‘informal’ organisation arises as a result of social interaction.<\/p>\n Question 12. \nEnumerate any two basis of departmentation in an organisation. (All India 2016: Foreign 2016) \nAnswer: \nTwo basis of departmentation in an organisation are: \n(i) Territories (north, south, east, west, etc) \n(ii) Products (appliances, clothes, cosmetics, etc).<\/p>\n Question 13. \nName the type of \u2018Organisational structure\u2019 which promotes efficiency in utilisation of manpower. (Delhi 2016) \nAnswer: \n‘Functional Organisational Structure’ promotes efficiency in utilisation of manpower.<\/p>\n Question 14. \nName the organisational structure which helps in increasing managerial and operational efficiency. (Foreign 2016) \nAnswer: \nFunctional organisational structure<\/p>\n Question 15. \nGive the meaning of \u201cResponsibility\u2019 as an element of delegation. (Delhi 2016; All India 2014; Comportment 2013) \nAnswer: \nIt is the obligation of a subordinate to perform the assigned duties properly.<\/p>\n Question 16. \nGive the meaning of authority as an element of delegation. (All India, Delhi, Foreign 2016; Comportment 2013) \nAnswer: \nAuthority refers to the right of an individual to command his subordinates and to take action within the scope of his position. As an element of delegation, it should be delegated in such a manner that a subordinate cannot escape from his\/her accountability.<\/p>\n Question 17. \nGive the meaning of accountability as an element of delegation. (Delhi 2016) \nAnswer: \nAccountability means being answerable for the final outcome. It cannot be delegated and flows upwards, i.e. a subordinate will be accountable to his superior for the satifactory performance of job.<\/p>\n Question 18. \nAlliance Ltd. is engaged in manufacturing plastic bukets. The objective of the company is to manufacture 100 buckets a day. To achieve this, the efforts of all department are coordinated and interlinked and authority-responsibility relationship is established among various job positions. There is clarity on who is to report to whom, identify the function of management discussed above. (Delhi 2015) \nOr \nTo make the annual function of the school successful, the Principal of the school divided all the activities into task groups each dealing with a specific area like rehearsals, decoration, stage management, refreshments etc. Each group was placed under the overall supervision of a senior teacher. Identify the function of management Performed by the Principal in doing so. (Compartment 2015) \nAnswer: \nOrganising<\/p>\n <\/p>\n Question 19. \n\u2018Himalaya Ltd\u2019, is engaged in manufacturing of washing machines. The target of the organisation is to manufacture 500 washing machines a day. There is an occupational specialisation in the organisation which promotes efficiency of employees. There is no duplication of efforts in such type of organisation structure. Identify the type of organisation structure described above. All (India 2015) \nAnswer: \nFunctional organisational structure<\/p>\n Question 20. \nWhat is meant by \u2018divisional structure\u2019 of an organisation? State its any two advantages. (Delhi 2015) \nAnswer: \nUnder the divisional structure, an organisation is divided into different divisions or units on the basis of products or geographical area.<\/p>\n Advantages of divisional structure are as follows:<\/p>\n \n- Product specialisation helps in the development of varied skills.<\/li>\n
- It promotes flexibility and initiative.<\/li>\n<\/ul>\n
Question 21. \nState the limitation of informal organisation. (All India 2015) \nAnswer: \nInformal organisation does not form any definite structure for smooth working of the organisation.<\/p>\n Question 22. \nDefine \u2018Formal Organisation\u2019. (Delhi 2015) \nOr \nWhat is meant by formal organisation? (Comportment 2014) \nAnswer: \nFormal organisation refers to the organisational structure which is designed by the management to accomplish a particular task. It specifies the boundaries of authority and responsibility for the achievement of organisational goals.<\/p>\n Question 23. \nDefine \u2018Organising\u2019 as a function of management. (All India (C) 2014,2013) \nAnswer: \nOrganising is the function of management, which coordinates the physical, financial and human resources and establishes productive relations among them for achievement of specific goals.<\/p>\n Question 24. \nDistinguish between functional structure and divisional structure on the basis of formation. (Comportment 2014) \nAnswer: \nFunctional structure is formed on the basis of functions, whereas divisional structure is formed on the basis of various product lines, which is further supported by functions.<\/p>\n Question 25. \nDefine organisation as a structure. (Foreign 2014) \nAnswer: \nAn organisation structure can be defined as the framework within which managerial and operating tasks are performed. It specifies the relationships between people, work and resources.<\/p>\n Question 26. \nState the suitability of functional structure of organising. (Comportment 2014) \nAnswer: \nFunctional structure is most suitable when the size of the organisation is large, has diversified activities and operations requires a high degree of specialisation.<\/p>\n Question 27. \nState any one advantage of formal organisation. (Delhi 2014) \nAnswer: \nFormal organisation results in systematic and smooth functioning of an organisation.<\/p>\n Question 28. \nIdentify the type of suitable organisation structure for a large scale organisation having diversified activities requiring high degree of specialisation in operations. (All India 2013) \nAnswer: \nFunctional organisational structure<\/p>\n Question 29. \nState any one feature of informal organisation. (Comportment 2013) \nAnswer: \nIn this organisation, there are no written rules and procedures to govern inter-relationship. But there are group norms which have to be observed.<\/p>\n Question 30. \nDistinguish between \u2018Formal and Informal organisation\u2019 on the basis of the following: \n(a) Origin \n(b) Authority \n(c) Leadership (All India 2019) \nAnswer: \nDifferences between formal and informal organisation are:<\/p>\n \n\n\nBasis<\/td>\n | Formal Organisation<\/td>\n | Informal Organisation<\/td>\n<\/tr>\n | \nOrigin<\/td>\n | It originates as a result of company’s rules and policies.<\/td>\n | It originates as a result of interaction among people at work.<\/td>\n<\/tr>\n | \nAuthority<\/td>\n | It arises by virtue of position in management.<\/td>\n | It arises out of personal qualities of individuals.<\/td>\n<\/tr>\n | \nLeadership<\/td>\n | Managers are leaders.<\/td>\n | Leaders are chosen by group.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n <\/p>\n Question 31. \nDistinguish between \u2018Functional and Divisional structure\u2019 on the basis of the following points: \n(a) Coordination \n(b) Managerial development \n(c) Cost (All Indin 2019) \nAnswer: \nDifferences between functional and divisional structures are:<\/p>\n \n\n\nBasis<\/td>\n | Functional Structure<\/td>\n | Divisional Structure<\/td>\n<\/tr>\n | \nCoordination<\/td>\n | Difficult for a multiproduct company.<\/td>\n | Easy, because all functions related to a particular product are integrated in one department.<\/td>\n<\/tr>\n | \nManagerial development<\/td>\n | It does not help in managerial development as functional manager lacks autonomy.<\/td>\n | It helps in managerial development, as they have autonomy and knowledge of varied aspects of a product.<\/td>\n<\/tr>\n | \nCost<\/td>\n | It is economical as there is no duplication.<\/td>\n | It is costlier, as there is duplication of resources.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Question 32. \nDifferentiate between \u2018Formal and Informal organisation\u2019 on the basis of: \n(i) Origin \n(ii) Authority \n(iii) Flow of communication (CBSE 2018) \nAnswer: \nDifferences between formal and informal organisation are:<\/p>\n \n\n\nBasis<\/td>\n | Formal Organisation<\/td>\n | Informal Organisation<\/td>\n<\/tr>\n | \nOrigin<\/td>\n | It is deliberately designed by the top management.<\/td>\n | It originates from within the formal organisation due to interaction among employees.<\/td>\n<\/tr>\n | \nAuthority<\/td>\n | Authority flows through scalar chain from top to bottom.<\/td>\n | There are no standard lines\/chain for flow of authority.<\/td>\n<\/tr>\n | \nFlow of communication<\/td>\n | Communication takes Place throught the scalar chain.<\/td>\n | Communication is free and independent.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Question 33. \nState any three limitations of \u2018Divisional structure\u2019 of an organisation. (Delhi 2015) \nAns. \nThe limitations of divisional structure of an organisation are as follows:<\/p>\n 1. Such a structure involves heavy financial costs due to the duplication of supporting functional units for the divisions. It also requires adequate number of capable managers to take charge of their respective divisions.<\/p>\n 2. All the divisions work as autonomous units. Divisional heads may gain power and ignore organisational interests.<\/p>\n 3. Conflict may arise between different divisions on allocation of funds and other resources.<\/p>\n Question 34. \nA company has been registered under the Companies Act with an authorised share capital of \u20b920,000 crore. Its registered office is situated in Delhi and manufacturing unit in a backward district of Rajasthan. Its marketing department is situated in Bhopal. The company is manufacturing Fast Moving Consumer Goods (FMCG). \n(i) Suggest with the help of a diagram a suitable organisation structure for the company. \n(ii) State any three advantages of this organisation structure. (Comportment 2015; Delhi 2015) \nOr \nA company has been registered under the Companies Act with an authorised share capital of \u20b9400 crore. Its registered office is situated in Mumbai and manufacturing unit in a backward district of Karnataka. Its marketing department is situated in Hyderabad. The company is manufacturing consumer goods. (All India 2018) \n(i) With the help of a diagram suggest a suitable organisation structure for the company. \n(ii) State any three limitations of this organisation structure. \nAnswer: \n(i) Functional structure is suitable for this company. The company’s organisation may be in the form as shown below. \n \n(ii) The advantages of functional organisational structure are: (any three)<\/p>\n \n- A functional structure provides occupational specialisation, since, emphasis is placed on specific functions.<\/li>\n
- It promotes control and coordination within a department because of similarity in the task being performed.<\/li>\n
- It increases managerial and operational , efficiency and this results in higher profit.<\/li>\n
- It makes training of employees easier as it focuses on a limited range of skills.<\/li>\n
- It ensures the performance of all activities necessary for achieving organisational objectives. Due attention can also be given to different functions.<\/li>\n<\/ul>\n
The limitations of functional organisational structure are: (any three) \n1. Specialists working in different departments may not be able to see the perspective of the organisation as a whole, e.g. the production department may get involved in producing a quality product without regard to the fact it might not sell at a high price. As a result, it becomes difficult to achieve the objectives of the organisation.<\/p>\n 2. It becomes difficult to hold a particular department responsible for any problem, e.g. when sales are declining, who is responsible? It is difficult to determine whether the marketing department or the production department is responsible for not producing a quality product.<\/p>\n 3. Functional heads do not obtain experience required for top management positions. Specialised skills and narrow perspective may lead to inflexibility.<\/p>\n 4. Conflict often arises when the interests of two or more departments are not compatible.<\/p>\n <\/p>\n Question 35. \nWhat is meant by \u2018Informal organisation\u2019? State its any two advantages. (All India 2015) \nOr \nGive the meaning of \u2018Informal organistion\u2019. State its any three advantages. (Delhi 2019) \nAnswer: \nInformal organisation is an aggregate of inter-personal relationships without any conscious purpose but which may contribute to joint results. It emerges on its own in a natural manner within the formal organisation.<\/p>\n Various advantages of informal organisation are: (any two)<\/p>\n | | | |