Chapter organising: Organising Long Questions | business studies Class 12 CBSE

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Chapter organising: Organising Long Questions | business studies Class 12 CBSE | ByteNotes.in

Long Answer

Medium difficulty • Structured explanation

Medium

Question 1

Long Form

Explain the steps involved in the process of organising. How do these steps lead to achievement of organisational goals?

Step 1 — Identification and division of work: Total work is divided into manageable activities so that duplication is avoided and the burden is shared, enabling specialisation at each level.
Step 2 — Departmentalisation: Similar activities are grouped into departments using bases such as function, territory or product, facilitating coordination and specialisation within units.
Step 3 — Assignment of duties: Work is allocated to individuals whose skills match the job, ensuring proper performance through the right person doing the right job.
Step 4 — Establishing authority and reporting relationships: A hierarchical structure is created specifying who reports to whom, removing ambiguity, fixing responsibility and enabling coordination.
Together, these steps translate plans into action by ensuring every activity is covered, resources are deployed optimally, responsibilities are clear and coordination is maintained across the organisation.

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Long Answer

Medium difficulty • Structured explanation

Medium

Question 2

Long Form

Analyse the importance of organising as a management function with reference to any five points.

Benefits of specialisation: Systematic allocation of specific jobs leads to repetitive performance which allows workers to gain experience, enhance productivity and develop specialised skills.
Clarity in working relationships: Establishment of reporting lines specifies who communicates with whom, fixes responsibility, and specifies the extent of authority, removing ambiguity.
Optimum utilisation of resources: Proper assignment of jobs avoids overlapping of work and prevents wastage of material, financial and human resources.
Effective administration: Clear job descriptions and well-defined duties avoid confusion and duplication, making management easy and bringing effectiveness in administration.
Development of personnel and growth: Delegation reduces managers' workload, stimulates creativity and develops subordinates; adding departments and product lines enables expansion into new territories.

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Long Answer

Medium difficulty • Structured explanation

Medium

Question 3

Long Form

Compare functional structure and divisional structure on any five bases.

Basis of formation: Functional structure is formed on the basis of functions performed (e.g., production, marketing), while divisional structure is formed on the basis of product lines supported by functions.
Type of specialisation: Functional structure leads to functional specialisation within departments, whereas divisional structure leads to product specialisation where managers develop expertise across all functions related to a product.
Fixation of responsibility: In functional structure it is difficult to fix responsibility for overall performance, while in divisional structure responsibility for profit or loss can be easily fixed on the divisional head.
Cost: Functional structure is more economical as functions are not duplicated, while divisional structure is costly due to duplication of similar functional departments across divisions.
Coordination: Functional structure makes coordination difficult for a multi-product company because functions are separated, while divisional structure makes it easier as all functions related to a product are integrated in one division.

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Long Answer

Medium difficulty • Structured explanation

Medium

Question 4

Long Form

Distinguish between formal and informal organisation on five bases and explain how informal organisation supports the formal organisation.

Origin and nature: Formal organisation arises from company rules and is rigid, while informal organisation arises from social interaction and is flexible with no written rules.
Authority and leadership: Formal authority is positional while informal authority arises from personal qualities; formal leaders are managers whereas informal leaders are chosen by the group.
Communication: In formal organisation communication follows the scalar chain, while in informal organisation it can flow in any direction without a planned route.
Support function: Informal organisation compensates for inadequacies in formal structure — employee reactions to plans and policies can be tested through the informal network.
Management approach: Rather than confronting informal groups, management should skillfully use both forms so that informal channels supplement formal communication and foster morale, filling gaps the formal structure cannot address.

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Long Answer

Medium difficulty • Structured explanation

Medium

Question 5

Long Form

Explain the three elements of delegation and the relationship between them.

Authority: The right to command subordinates and take decisions within the scope of one's position; it arises from the scalar chain, is highest at top management and flows downward.
Responsibility: The obligation to perform an assigned duty; it arises from delegated authority and flows upward — a subordinate is always responsible to his superior for the assigned task.
Accountability: Being answerable for the final outcome; it arises from responsibility, cannot be delegated at all, and flows upward from subordinate to superior.
The key relationship: Authority is delegated, responsibility is assumed, and accountability is imposed. Authority and responsibility must be commensurate — excess authority leads to misuse; excess responsibility without authority makes a person ineffective.
Importantly, delegation does not mean abdication; even after delegating authority, the manager remains accountable to the same extent as before, showing that accountability is always retained by the delegator.

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Long Answer

Medium difficulty • Structured explanation

Medium

Question 6

Long Form

Explain the importance of delegation for effective management and employee development.

Effective management: By empowering employees with delegated authority, managers get more time to concentrate on important and complex matters, improving overall managerial efficiency.
Employee development: Delegation provides employees opportunities to use their talent, develop latent abilities, perform complex tasks and assume greater responsibilities, preparing better future managers.
Motivation: When a superior entrusts a subordinate with a task, it signals trust and builds self-esteem; the subordinate feels encouraged to improve his performance, raising morale.
Facilitation of growth: Delegation provides a trained and experienced workforce capable of taking up leading positions in new ventures and replicating the work ethos in newly set up branches.
Better coordination: Clearly defined authority, responsibility and accountability help avoid overlapping of duties and duplication of effort, maintaining effective coordination among departments and levels.

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Long Answer

Hard difficulty • Structured explanation

Hard

Question 7

Long Form

Analyse the importance of decentralisation as an organisational philosophy with reference to five points.

Develops initiative: Freedom to take decisions encourages self-reliance and confidence among lower-level managers, helping identify those with leadership potential.
Develops managerial talent: Handling independent assignments provides practical experience to supplement formal training, creating a reservoir of qualified manpower for future challenging positions.
Quick decision making: Decisions taken near points of action avoid lengthy communication chains, reduce distortion of information and enable faster adaptation to dynamic operating conditions.
Relief to top management: Decentralisation diminishes direct supervision, freeing top management from operational decisions and giving them time for important policy decisions.
Better control: Performance can be evaluated at each departmental level; accountability is clearer; and innovative control systems such as the balanced scorecard and management information system emerge to address measurement challenges.

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Long Answer

Hard difficulty • Structured explanation

Hard

Question 8

Long Form

Compare delegation and decentralisation on five bases and justify why decentralisation is considered an extension of delegation.

Nature: Delegation is compulsory because no individual can perform all tasks alone, whereas decentralisation is an optional policy decision at the discretion of top management.
Scope: Delegation is narrow in scope, limited to a superior and his immediate subordinate, while decentralisation has wide scope implying extension of delegation to the lowest level of management.
Freedom: In delegation, superiors exercise more control so subordinates have less freedom, while in decentralisation executives have greater freedom of action due to less direct control.
Purpose: Delegation lessens the burden of the manager, while decentralisation increases the role of subordinates by giving them more autonomy in decision making.
Decentralisation as extension: Decentralisation is delegation of authority throughout the organisation — it is the result when delegation is systematically practiced at all hierarchical levels, making every level an autonomous decision-making unit within set limits.

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Long Answer

Medium difficulty • Structured explanation

Medium

Question 9

Long Form

Explain the concept of organisation structure and discuss why an enterprise needs to review its structure periodically.

Organisation structure is the framework within which managerial and operating tasks are performed, specifying relationships between people, work and resources to accomplish desired goals.
As an organisation grows in size and complexity, coordination becomes difficult due to emergence of new functions and increase in structural hierarchies, necessitating structural evolution.
Peter Drucker noted that the wrong structure will seriously impair business performance and even destroy it, underlining that structure must be aligned to objectives at all times.
A structure that does not change may lead to stagnancy; enterprises that do not adapt at all may close down or cease to grow in response to environmental changes.
Periodic review ensures the structure contributes to achievement of enterprise objectives, provides scope for initiative, and enables maximum and effective contribution from personnel in dynamic conditions.

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Long Answer

Hard difficulty • Structured explanation

Hard

Question 10

Long Form

Explain the advantages and limitations of formal organisation and discuss whether an organisation can function effectively with formal organisation alone.

Advantages: Formal organisation makes it easier to fix responsibility since mutual relationships are clearly defined; it maintains unity of command and provides stability through predictable behaviour guided by specific rules.
Advantage — clarity: Duties are specified so there is no ambiguity in each member's role, which avoids duplication of effort and leads to effective accomplishment of goals.
Limitation — delays: The established chain of command leads to procedural delays, increasing time taken for decision making, making the enterprise slow to respond to change.
Limitation — creativity and completeness: Rigid policies do not allow recognition of creative talent or deviations, and the emphasis on structure over human relationships means formal organisation does not provide a complete picture of how the organisation works.
Conclusion: An organisation cannot function with formal organisation alone; informal organisation is inevitable and actually supports formal organisation by filling its inadequacies — testing employee reactions, providing faster communication and fulfilling social needs.

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Chapter organising: Organising | Long Questions

Explain the steps involved in the process of organising. How do these steps lead to achievement of organisational goals?

Analyse the importance of organising as a management function with reference to any five points.

Compare functional structure and divisional structure on any five bases.

Distinguish between formal and informal organisation on five bases and explain how informal organisation supports the formal organisation.

Explain the three elements of delegation and the relationship between them.

Explain the importance of delegation for effective management and employee development.

Analyse the importance of decentralisation as an organisational philosophy with reference to five points.

Compare delegation and decentralisation on five bases and justify why decentralisation is considered an extension of delegation.

Explain the concept of organisation structure and discuss why an enterprise needs to review its structure periodically.

Explain the advantages and limitations of formal organisation and discuss whether an organisation can function effectively with formal organisation alone.

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