Chapter – 5 organising

WORK-SHEET

Long answer questions:

1. What is meant by functional structure? Explain any two advantages and two limitations of this structure.
2. “If we delegate authority, we multiply it by two, if we decentralize it , we multiply it by many.” In the light of
this statement in the light of this statement, explain any four points of importance of decentralistion.
3. What is meant by divisional structure? Explain any two advantages and two limitations of this structure.
4. What is meant by delegation? Explain any three elements of delegation and four points of importance of
delegation in an organisation.
5. Describe briefly the steps involved in the process of organisaing.
6. Explain any four points of importance of organisation function of management.
Application Oriented Questions:
1. Aman, Avneesh and Amreesh have decided to start a business of manufacturing toys. They identified the
following main activities which they have to perform:
a) Purchase of raw material b) Purchase of machinery c) Production of toys d) Arrangement of
finance e) Sales of toys f)Identifying the areas where they can sell their toys. G)Selection of
employees.
i. Identify the function of management involved in the above mentioned para.
ii. Quote the lines from the above para which help you in identifying this function.
iii. State the steps followed in the process of this function of management.

2. Rahul runs a factory Where in he manufactures leather shoes. The business is doing well and he intends to
expand by diversifying into leather bags as well as leather jackets. Which type of organisaing structure would
you recommend for the expanded organisation and why? Give any two reason.
3. In a textile company the main functions are a) manufacturing b) finance c) marketing d)personnel
management. How will you structure the organisation and why?
4. The directors of Joyita ltd. An organisation manufacturing computers have asked their marketing manager to
achieve a target sale of 90 computers per day. Marketing managers has delegated the task to his deputy
sales manger working under him. The deputy sales manager could not achieve the target. Is marketing
manager responsible for the failure of this deputy sales manager? Explain in brief the relevant principle in
support of your answer.
5. Vishal fans pvt. Ltd. has to plan for manufacturing table fans. It is managed by two brothers one of them is
managing director and looks after marketing, finance and human resources and another is operation
director and looks after manufacturing and purchase. However many times MD gives orders to plant
managers, supervisors and workers directly. Sometimes, these orders happen to be contrary to the orders
given by OD. As a result the employees face considerable difficulty in carrying out the orders and invite harsh
words from MD or OD
i. Identify and explain the type of organisation structure which has been adopted by the company
6. Aradhna and Gandharva are heads of two different departments in Yumco Ltd. They are efficient
managers and are able to motivate employees of their respective departments to improve performance.
However their drive to excel in their own sphere of activity instead of giving emphasis on objectives of the
enterprise has hindered the interaction between the departments that Aradhana and Gandharv are heading.
Often there are inter departmental conflicts and they have become incompatible. This has proved to the
harmful in the fulfillment of the organisational objectives. The situation has deteriorated to such an extent
that the CEO of Yumco Ltd. has hired a consultant. Rashmi to resolve the problem, after studying the
 situation closely, Rashmi found that the problem has arisen due to inflexibility and narrow perspective on
the part of both Anuradha and Gandharv. She is of the view that this situation is the result of the type of
organisational structure. Yumco Ltd. has adopted.
From the above information, identify the organisational structure adopted by ‘Yumco Ltd.’ and state any
three advantages of the structure identified.
Short Answer Questions
1. Differentiate between functional and divisional structure on any 6 basis.
2. Differentiate between Delegation and Decentralisation on any 6 basis.
Very short answer questions:
1. Identifying and dividing the work is the first step in the process of one of the functions of management.
Identify the function 2008
2. Define formal organisation 2015
3. Enumerate any two bases of departmentation in an organisation. 2009
4. Define ‘Organising’ as a function of management. 2013
5. Identify the suitable type of organisation structure for a large scale organisation having diversified activities
requiring high degree of specialization in operation. 2013
6. Define Authority as an element of delegation. 2014
7. Define Responsibility as an element of delegation. 2013
8. Define Accountability as an element of delegation. 2014
9. Name the type of ‘organisational Structure’ which promotes efficiency in utilization of manpower. 2016

HINTS TO ANSWER
Application Oriented Questions:

1. (i) Organising
(ii) “They identified the following main activities which they have to perform: “
(iii) Step -1 Identification & grouping the activities)

2. Ans: Divisional because facilitate effective coordination between different functions And
performance of each unit can be easily assessed.
4 Yes marketing manager is responsible, because he cannot delegate his accountability,

Involved principle is absoluteness of accountability

5 Functional structure
6 Functional structure (Write three advantages)

Very short answer questions:

1. Identifying and dividing the work is the first step in the process of one of the functions of management.
Identify the function 2008
Ans. Organising
2. Define formal organisation 2015
An organizational structure which is designed by the mgmt. to accomplish a particular task.
3. Enumerate any two bases of departmentation in an organisation. 2009
4. Define ‘Organising’ as a function of management. 2013
5. Identify the suitable type of organisation structure for a large scale organisation having diversified activities
requiring high degree of specialization in operation. 2013
A Functional Structure
6. Define Authority as an element of delegation. 2014
A right of an individual to command his subordinates and to take action within the scope of his position.
7. Define Responsibility as an element of delegation. 2013
A is an obligation of an individual to carry out the assigned duties.
8. Define Accountability as an element of delegation. 2014
A is an obligation of an individual to carry out the Responsibilities i.e. being answerable for final outcome.
9. Name the type of ‘organisational Structure’ which promotes efficiency in utilization of manpower. 2016
A functional structure

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