1 Mark Questions:

1. What is the primary purpose of an organizational chart? (Aditya)

ANS. Its
purpose is to illustrate the reporting relationships and chains of
command within the organisation
2. Define the term 'organizing' in the context of management functions. (Aditya)
ANS.Organizing involves the manager determining how to distribute resources and
arrange employees according to the plan
3. Name the organizational structure which supports growing managerial and operational
proficiency. (Tivissha)
Answer: Functional structure
4. Which term denotes “The number of subordinates that can be effectively managed by a
superior? (Tivissha)

ANS. The Span of Management

3 Mark Questions:
1. Name the steps involved in the organizing process in a large multinational corporation.
Emphasize how effective organizing can lead to improved operational efficiency and
organizational effectiveness. (Aditya)
ans.
1. **Identification of Activities**: The organizing process begins with identifying all the activities
necessary to achieve the organization's objectives. This involves breaking down tasks into
manageable units and determining the resources required for each.

2. **Division of Work**: Once activities are identified, they are divided into specific jobs or tasks.
Division of work ensures that each employee or group has a clear set of responsibilities and
tasks that contribute to the overall goals of the organization.

3. **Departmentation**: Departmentation involves grouping similar activities into departments or

divisions based on common functions, products, customers, or geographical locations. This
helps in achieving specialization, efficient resource allocation, and coordination within the
organization.

4. **Assigning Duties**: After departmentation, duties and responsibilities are assigned to

individuals or groups. This step clarifies who is responsible for what tasks and establishes
accountability within the organization.

5. **Establishing Reporting Relationships**: Organizing defines formal lines of authority and

communication within the organization. This involves establishing reporting relationships,
determining the hierarchy of authority (chain of command), and ensuring clear communication
channels.
6. **Delegation of Authority**: Delegation is the process of entrusting authority and responsibility
to subordinates while retaining accountability. Effective delegation helps in empowering
employees, developing their skills, and freeing up managerial time for more strategic tasks.

7. **Establishing Coordination**: Coordination ensures that activities and efforts across different
departments or units are harmonized to achieve common objectives. It involves integrating
individual efforts, resolving conflicts, and ensuring synergy among various parts of the
organization.

8. **Establishing Procedures and Rules**: Standard operating procedures (SOPs) and rules are
established to guide employees in performing their roles effectively. This includes developing
protocols for workflow, decision-making processes, quality standards, and other operational
guidelines.

9. **Establishing Communication Channels**: Effective communication channels are essential

for transmitting information, instructions, feedback, and decisions within the organization.
Organizing establishes formal and informal communication networks to facilitate smooth
information flow.

### Importance of Effective Organizing:

- **Efficiency**: Organizing ensures that resources are allocated efficiently, tasks are performed
with minimal wastage of time and effort, and organizational goals are achieved effectively.

- **Specialization**: Division of work and departmentation allow employees to specialize in

specific tasks or functions, leading to higher productivity and expertise in their respective areas.

- **Clarity and Accountability**: Clear roles, responsibilities, and reporting relationships reduce
ambiguity, confusion, and conflicts within the organization. Employees know what is expected of
them and who to report to, fostering a structured work environment.

- **Adaptability**: Organizing provides the framework for adapting to changes in the external
environment, such as market trends, technological advancements, or competitive pressures. It
enables the organization to respond quickly and effectively to new challenges or opportunities.

- **Employee Motivation**: Well-defined roles, opportunities for delegation, and clear career
paths contribute to employee motivation and job satisfaction. Empowered employees are more
likely to be engaged and committed to achieving organizational objectives.

2. ‘Panda Trucks Ltd.’ decided to set-up its new truck manufacturing factory in the backwards
area of Bihar were very less job opportunities were available. People of that area welcomed this
effort of ‘Panda Trucks Ltd’. To attract people to work in its factory it also decided to provide
many other facilities like school, hospital, market etc. in the factory premises. ‘Panda Trucks
Ltd.’ started earning huge profits. Another competing company asked its production manager
‘Sanjay’ to investigate the reasons of earning huge profits by ‘Panda Trucks Ltd.’

Sanjay found that in both the companies there was systematic coordination among the various
activities to achieve organizational goals. Every employee knew who was responsible and
accountable to whom, The only difference was that in his organization communication took
place only through the scalar chain whereas ‘Panda Trucks Ltd.’ was allowing flow of
communication in all the directions as per the requirement which lead to faster spread of
information as well as quick feedback.

(a) Identify the type of organization, which permits ‘Panda Trucks Ltd.’ the flow of
communication in all the directions.
(b) State another advantage of the type of organization identified in (a) above.
(c) State any two values which ‘Panda Trucks Ltd.’ wanted to communicate to the society.
(Tivissha)
ANS.


a. “Informal Organisation” allows the communication to flow in all directions.

b. One another advantage of informal organization is that it allows employees to feel sociable,
interactive and competitive. This results in better employee- engagement and work culture. All
these factors result in better productivity for the organization by the employees.
c. "steelo Itd" wanted to communicate following two values to the organization
i. A socially responsible corporation
ii. An employee centric organization

4 Mark Questions:
1. Discuss the concept of 'delegation of authority' and how it can enhance managerial efficiency.
(Aditya)
Delegation in business is the transfer of authority or responsibility for
specific activities and tasks within a business from one individual to
another.
Delegation is a crucial managerial tool that can significantly enhance efficiency in several ways:

1. Focus on Core Responsibilities: Delegation allows managers to focus on strategic

tasks and activities that are critical for achieving organizational objectives. By
transferring routine or less critical tasks to others, managers free up their time and
 energy to concentrate on high-priority activities such as planning, decision-making, and
long-term strategy development.
2. Skill Utilization: Delegation enables managers to leverage the skills and expertise of
their team members. By assigning tasks that match employees' strengths and
capabilities, managers ensure that tasks are completed effectively and efficiently. This
not only improves task outcomes but also enhances employee morale and job
satisfaction as they feel valued for their skills.
3. Development of Subordinates: Delegation provides valuable learning and growth
opportunities for employees. By entrusting them with responsibilities, managers help
employees develop new skills, gain experience, and build confidence in their abilities.
This professional development contributes to a more capable and motivated workforce
over time.

2. Aman Chadha started 'Bulls Eye' a company for providing cyber security solutions to
businesses. Its objective is to prevent, detect and respond to cyber attacks and protect
critical data. He was a hardworking software engineer and an expert in cyber security.
His reputation grew rapidly as he was not only a person of integrity but also did his work
with utmost honesty and sincerity. The business started growing day by day.

He was delighted when he was offered a big project by the Ministry of Defence. While
working on the project, he found that the volume of work made it impractical for him to
handle all the work by himself. He decided to expand the team. The company
maintained a close liaison with a local engineering college. During a campus placement,
Ishan and Vrinda were appointed to work for the new project.

He found the new employees capable, enthusiastic and trustworthy. Aman Chadha was
thus able to focus on objectives and with the help of Ishan and Vrinda, the project was
completed on time. Not only this Aman Chadha was also able to extend his area of
operations. On the other hand, Ishan and Vrinda also got opportunities to develop and
exercise initiative.

(i) Identify and briefly explain the concept used by Aman Chadha in the above case
which helped him in focusing on objectives.
(ii)Also, state any four points of importance of the concept identified in (i) above.
(Tivissha)
ANS. (i) Delegation: Delegation is the transfer of authority from superior to subordinate,
entrustment of responsibility and creation of accountability for performance which helps
a manager to extend his area of operations.
(ii) Importance of delegation of authority:
(a) Effective management: It helps in effective management as the managers get more
time to concentrate on important matters.
(b) Employee development: It helps in the development of employees as the employees
get more opportunities to utilize their talent.
(c) Motivation of employees: It helps to motivate employees as the employees feel
encouraged and try to improve their performance further.
(d) Faciliation of growth: It facilitates growth by providing a ready workforce to take up
leading positions in new ventures.
(e) Basis of management hierarchy: It establishes a management hierarchy through
clear superior-subordinate relationships.
(f) Better coordination: It helps in better
co-ordination by avoiding overlapping of duties.

6 Mark Questions:
1. Analyze the impact of an ineffective organizational structure on business performance.
(Aditya)
ANS.

### Impact of an Ineffective Organizational Structure on Business Performance:

1. **Poor Communication and Coordination**:

- **Explanation**: Ineffective structures often lead to unclear communication channels and
poor coordination among departments or teams.
- **Impact**: This can result in delays, misunderstandings, and missed opportunities. For
example, critical information may not reach decision-makers in a timely manner, leading to
delayed responses to market changes or customer needs.

2. **Duplication of Effort and Resources**:

- **Explanation**: Without clear division of responsibilities and authority, there may be
duplication of tasks and inefficient use of resources.
- **Impact**: This increases costs, reduces productivity, and can lead to conflicts among
employees or departments competing for the same resources. For instance, different
departments may independently pursue similar projects without realizing overlaps, wasting time
and money.

3. **Lack of Accountability and Responsibility**:

- **Explanation**: Ineffective structures may blur lines of authority and accountability, making it
unclear who is responsible for decisions and outcomes.
 - **Impact**: This can lead to finger-pointing, lack of ownership over tasks, and a culture of
passing the buck rather than taking initiative. Employees may feel disengaged or demotivated if
they are unsure of their roles and responsibilities.

4. **Difficulty in Adaptation and Innovation**:

- **Explanation**: Rigidity in organizational structures can hinder the organization’s ability to
adapt to changes in the external environment or to innovate.
- **Impact**: In dynamic markets, organizations need flexibility to respond quickly to new
trends, technological advancements, or competitive pressures. An ineffective structure may
stifle creativity and slow down decision-making processes, thus impeding innovation and market
responsiveness.

5. **Employee Morale and Turnover**:

- **Explanation**: A disorganized or unclear structure can contribute to low employee morale
and high turnover rates.
- **Impact**: Employees may feel frustrated by inefficiencies, lack of career progression, or
unclear reporting relationships. This can lead to reduced productivity, increased absenteeism,
and difficulty in attracting and retaining talent, all of which negatively impact business
performance.

6. **Impact on Customer Satisfaction and Market Reputation**:

- **Explanation**: Ultimately, an ineffective organizational structure can affect customer
satisfaction and the organization’s reputation in the market.
- **Impact**: Customers may experience inconsistent service delivery, delayed responses to
inquiries, or product quality issues. Over time, this can erode customer loyalty and damage the
organization’s brand image, leading to loss of market share and competitive disadvantage.

2. Mrs. Sofia is the marketing head of Multinational Company. In a high Level Departmental
meeting, She asked one of her subordinates, Miss Kiran to take charge of the company‘s new
office in Singapore. Mrs. Sofia grants necessary authority to Miss Kiran to take complete charge
however , within two months of seeking feedback about Miss Kiran‘s work, Mrs. Sofia realizes
that she is not doing the work as per expectations. So she decides to take away the authority
from her and redelegate the same to Miss Disha. Due to this change in the manager at the
Singapore office, the work there suffers a lot and the company is not able to meet the desired
goals.
On the the basis of the given information, answer following questions:
a) Why is Miss Kiran supposed to give regular feedback about her work to Mrs. Sofia.?
b) Can Mrs. Sofia take back the authority granted to Miss Kiran and delegate it to another
person?
c) Can Miss Kiran be held responsible for not meeting the work allotted to her?
d) Differentiate between authority and responsibility on the basis of flow and origin (Tivissha)
ANS.
a) Why is Miss Kiran supposed to give regular feedback about her work to
Mrs. Sofia?

Miss Kiran is supposed to give regular feedback about her work to Mrs. Sofia primarily for
accountability and performance evaluation purposes. According to the principles of delegation in
Class XII Business Studies:

● Accountability: Miss Kiran is accountable to Mrs. Sofia for the tasks and responsibilities
delegated to her. Regular feedback allows Mrs. Sofia to monitor Miss Kiran's progress,
ensure that tasks are being carried out effectively, and address any issues or challenges
that may arise.
● Performance Evaluation: Feedback sessions provide Mrs. Sofia with insights into Miss
Kiran's performance. This helps in assessing whether Miss Kiran is meeting the
expectations and objectives set for her role in managing the new office in Singapore.

b) Can Mrs. Sofia take back the authority granted to Miss Kiran and
delegate it to another person?

Yes, according to Class XII Business Studies:

● Revocation of Delegation: Mrs. Sofia has the authority to revoke the delegation of
authority granted to Miss Kiran if she finds that Miss Kiran is not performing up to the
expected standards. This is based on the principle that delegation is not permanent and
can be adjusted or revoked based on performance and organizational needs.
● Organizational Goals: Mrs. Sofia's decision to reassign the authority to another person,
such as Miss Disha, is aimed at ensuring that organizational goals are effectively
pursued and that the Singapore office operates efficiently under competent leadership.

c) Can Miss Kiran be held responsible for not meeting the work allotted to
her?

Yes, according to Class XII Business Studies:

● Responsibility and Accountability: Miss Kiran can be held responsible for not meeting
the work allotted to her because responsibility and accountability go hand in hand with
authority. When authority is delegated, it implies that the individual (in this case, Miss
Kiran) is responsible for fulfilling the assigned tasks and achieving the specified
objectives.
● Performance Standards: If Miss Kiran is not meeting the work allotted to her despite
being granted authority, she may be held accountable for the consequences of her
actions or lack thereof. This could include underperformance of the Singapore office and
its impact on overall organizational goals.
●
 ●

(suyash bahl)