Wednesday, 16 September 2020

CBSE Class 12 - Business Studies - Chapter: Organising (Questions and Answers)(#class12BusinessStudiess)(#eduvictors)(#cbsenotes)

Chapter: Organising (Questions and Answers)

CBSE Class 12 - Business Studies

CBSE Class 12 - Business Studies - Chapter: Organising (Questions and Answers)(#class12BusinessStudiess)(#eduvictors)(#cbsenotes)

Q1: Define organising.

Answer: Organising is the process of defining and grouping activities and establishing authority relationships among them. Therefore, it is a process, which coordinates human efforts, assembles resources and integrates both into a unified whole to be utilized for achieving specified objectives.

Q2: List the steps involved in the process of organising. Explain the steps also.

Answer: Steps in the Process of Organising are:

1. Identification and division of work

2. Departmentalisation

3. Assignment of duties

4. Establishing reporting relationships

1. Identification and division of work: 

The first step in the process of organising involves identifying and dividing the work that has to be done in accordance with previously determined plans.

2. Departmentalisation: 

Once work has been divided into small and manageable activities then those activities which are similar in nature are grouped together. Such sets facilitate specialisation. This grouping process is called departmentalisation.

3. Assignment of duties: 

It is necessary to define the work of different job positions and accordingly allocate work to various employees. Once departments have been formed, each of them is placed under the charge of an individual.

4. Establishing reporting relationships: 

Merely allocating work is not enough. Each individual should also know who he has to take orders from and to whom he is accountable. The establishment of such clear relationships helps to create a hierarchical structure and helps in coordination amongst various departments.

Q3: What does organising as a function of management lead to?

Answer: Organising as a function fo management leads to:

• Creation of organisational structure with suitable personnel.

• Designing specific roles to eliminate ambiguity.

• Defining inter-relationship among personnel for productive cooperation.

• Clarifying authority and responsibility for results and logical grouping of activities.

Q4: Define organisational structure.

Answer: Organisational structure refers to that specific pattern of the relationship which is created during the organising process. The structure provides a basis or framework for manager and other employees for performing their functions.

It may be defined as a 'system of job positions, the jobs assigned to them and the authority relationship among them'.

Q5: What are the two types of organisation structures?

Answer: Types of Organisation Structures

(i) Functional structure and

(ii) Divisional structure

Functional structure groups activities on the basis of functions. The advantages of such a structure are specialisation, better control, managerial efficiency and ease in training employees. The disadvantages are functional empires, conflict of interest, inflexibility, and restriction in managerial development.

Divisional structure groups activities on the basis of products. The advantages are integration, product specialisation, greater accountability, flexibility, better coordination and more initiative. The disadvantages are departmental conflicts, costly process, ignoring of organisational interests, increase in requirements of general managers.

Q6: What is a formal organisation?

Answer: Formal organisation is designed by the management to achieve organisational goals. Its advantages are fixation of responsibility, clarity of roles, unity of command and effective accomplishment of goals. Its disadvantages are procedural delays, inadequate recognition of creativity, limited in scope.

Q7: What is an informal organisation?

Answer: Informal organisation arises out of interaction amongst people at work. Its advantages are speed, the fulfillment of social needs fills inadequacies of formal structure. Its disadvantages are a disruptive force, resistance to change and priority to group interests.

Q8: Define delegation. What are its elements?

Answer: Delegation is the transfer of authority from superior to subordinate. The manager who delegates authority holds his subordinates responsible for the proper performance of the assigned tasks. To make sure that his subordinates perform all the works effectively and efficiently in an expected manner the manager creates accountability.

It has three elements:

1. Authority,

2. Responsibility

3. Accountability.

Q9: What is the importance of delegation?

Answer: Importance of delegation is that it helps in effective management, employee development, motivation, growth and coordination Decentralisation is the delegation of authority throughout the organisation.

Q10: What is decentralisation?

Answer: Decentralisation is defined as even and systematic distribution of authority at every level and all departments of management. Under this, the authority is transferred to the level where it is to be exercised, so the number of centres for taking decisions’ increases. It should be noted that ‘Decentralisation’ is an extension of delegation.

Q11: Explain centralisation and decentralisation are relative terms.

Answer: Centralisation and decentralisation are relative terms, as seen from the existing status of various business enterprises. Both of them represents the pattern of authority among managers at different levels. Centralisation of authority means the concentration of power of decision making in a few hands. In such an organization very little authority is delegated to managers at middle and lower levels. No organization can be completely centralized or decentralized. They exist together and there is a need for a balance between the two. As the organization grows in size, there is a tendency to move towards decentralization. Thus, every organization is characterized by both.

Q12: Fill in the Blanks.

I. __________ form of organisation spreads rumours.

II. Downward transfer of authority from a superior to a subordinate is know as ____________.

III. Three elements of delegation are ______ , ______ and _______.

IV. Dispersal of decision making authority to all levels is know as__________.

V. Concentration of decision making power at top level is know as_________.


(I) Informal 

(II) delegation 

(III) Authority, Responsibility and Accountability

(IV) decentralisation 

(V) Centralisation

👉See Also:

CH5: Organising (V Short Q & A)
CH5: Importance Of Organising (Q & A)

CH6: Staffing (V Short Q & A)
CH6: Staffing (Short and Long Q & A)
CH6: Staffing - Understanding Recruitment (Q & A)

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