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

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

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Question 1

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Define organising as a management function.

Organising is the process of identifying and grouping the work to be performed, defining and delegating responsibility and authority, and establishing relationships to enable people to work most effectively together in accomplishing objectives.
It is a means for translating plans into action by clarifying jobs and working relationships and effectively deploying resources for attainment of goals.
The organising function leads to the creation of an organisational structure that specifies roles and inter-relationships so that ambiguity in performance of duties is eliminated.

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Question 2

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What is departmentalisation? State any two bases on which departments can be created.

Departmentalisation is the process of grouping similar or related activities together to form separate departments within an organisation.
One common basis is territory, where departments are created for different geographical regions such as north, south, west etc.
Another common basis is product, where departments are formed for different products such as appliances, clothes, cosmetics etc.

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Question 3

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How does organising lead to benefits of specialisation?

Organising leads to systematic allocation of specific jobs to specific workers, which reduces overall workload and increases productivity.
Repetitive performance of a particular task allows a worker to gain experience in that area, which leads to specialisation over time.
Specialised workers perform their limited range of tasks more efficiently and with greater skill than generalist workers, contributing to overall organisational performance.

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Question 4

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Explain the step of 'establishing authority and reporting relationships' in the process of organising.

After allocating work, it is necessary to specify who has to take orders from whom and to whom each person is accountable, creating a clear hierarchical structure.
Such clear relationships help in coordination among various departments and remove ambiguity in transfer of information and instructions.
The establishment of reporting relationships enables fixation of responsibility and specifies the extent of authority to be exercised by each individual in the organisation.

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Question 5

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How does organising help in adaptation to change in business environment?

The process of organising allows a business enterprise to accommodate changes in the business environment by making the organisation structure suitably modifiable.
It allows revision of inter-relationships amongst managerial levels to pave the way for a smooth transition when environmental changes demand it.
Organising also provides stability to the enterprise as it can continue to survive and grow in spite of changes, equipping it to meet various challenges.

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Question 6

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What is meant by span of management and how does it shape organisational structure?

Span of management refers to the number of subordinates that can be effectively managed by a superior in an organisation.
A wider span of management results in a flat structure with fewer levels, while a narrower span results in a tall structure with more hierarchical levels.
Span of management determines the levels of management in the structure, and a proper span is essential for smooth flow of communication and better control.

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Question 7

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State any two advantages of functional structure.

Functional structure leads to occupational specialisation since emphasis is placed on specific functions, which promotes efficiency as employees perform similar tasks within a department.
It leads to minimal duplication of effort because similar functions are not repeated across departments, resulting in economies of scale and lower costs.
It makes training of employees easier as the focus is only on a limited range of skills required for a specific function.

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Question 8

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State any two disadvantages of functional structure.

Functional structure may lead to functional empires where a functional head overemphasises the importance of his department and pursues departmental interests at the cost of overall organisational interests.
It may lead to inflexibility as people with the same skills and knowledge base develop a narrow perspective and functional heads do not gain experience in diverse areas for top management positions.
Problems in coordination can arise as information has to be exchanged across functionally differentiated departments, leading to conflicts of interest.

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Question 9

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What is a divisional structure? When is it suitable?

In a divisional structure, the organisation comprises separate business units or divisions, each with a divisional manager responsible for performance and authority over the unit, generally grouped by products.
Each division is self-contained as it develops expertise in all functions related to a product line, with each division functioning as a profit centre.
Divisional structure is suitable for large enterprises manufacturing a variety of products using different productive resources, and when adding employees or departments requires greater autonomy.

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Question 10

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State any two advantages of divisional structure.

Product specialisation helps in developing varied skills in a divisional head who gains experience in all functions related to a particular product, preparing him for higher positions.
It promotes flexibility and initiative because each division functions as an autonomous unit, leading to faster decision making without requiring approval from multiple levels.
It facilitates expansion and growth as new divisions can be added without interrupting existing operations by merely adding another divisional head and staff for the new product line.

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Question 11

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Define formal organisation and state any two of its features.

Formal organisation refers to the organisation structure deliberately designed by management to accomplish a particular task, specifying clearly the boundaries of authority and responsibility.
It specifies the relationships among various job positions and the nature of their inter-relationship, clarifying who has to report to whom.
It places more emphasis on work to be performed rather than on interpersonal relationships among employees, and uses rules and procedures as a means to achieve specified objectives.

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Question 12

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What are two limitations of formal organisation?

Formal communication may lead to procedural delays as the established chain of command has to be followed, which increases the time taken for decision making.
Poor organisation practices may not provide adequate recognition to creative talent since the formal structure does not allow any deviations from rigidly laid down policies.
Formal organisation does not provide a complete picture of how an organisation actually works because it places more emphasis on structure and work than on human relationships.

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Question 13

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How does informal organisation arise and what are its features?

Informal organisation emerges from within the formal organisation when people interact beyond their officially defined roles; based on interaction and friendship they form groups with common interest.
It has no written rules, is fluid in form and scope, has no fixed lines of communication, and emerges spontaneously without deliberate creation by management.
Standards of behaviour evolve from group norms rather than officially laid-down rules, and independent channels of communication without specified direction of flow are developed by group members.

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Chapter organising: Organising | Short Questions

Define organising as a management function.

What is departmentalisation? State any two bases on which departments can be created.

How does organising lead to benefits of specialisation?

Explain the step of 'establishing authority and reporting relationships' in the process of organising.

How does organising help in adaptation to change in business environment?

What is meant by span of management and how does it shape organisational structure?

State any two advantages of functional structure.

State any two disadvantages of functional structure.

What is a divisional structure? When is it suitable?

State any two advantages of divisional structure.

Define formal organisation and state any two of its features.

What are two limitations of formal organisation?

How does informal organisation arise and what are its features?

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