SANGAM SCHOOL OF EXCELLENCE
WS-2_ORGANISING
CLASS – XII SUBJECT –
BUSINESS STUDIES
MCQs type questions:
Q.1 Assertion (A): Identification and division of work is the first step in the process of
organising.
Reason (R): Organising involves identifying and dividing the work that has to be done
in accordance with previously determined plans.
(A) Both (A) and (R) are correct.
(B) (A) is correct (R) is incorrect.
(C) Both (A) and (R) are correct, and (R) is the correct explanation of (A).
(D) Both (A) and (R) are correct, and (R) is not the correct explanation of (A).
Q.2 The process that initiates implementation of plans by clarifying jobs, working
relationships and effectively deploying resources for attainment of identified and
desired results is called:
(A) Coordination (B) Management (C) Organising (D) Delegation
Q.3 The element of delegation which relates to the obligation of a subordinate to properly
perform the assigned duty is known as:
(A) Authority (B) Responsibility (C) Accountability (D) Centralisation
Q.4 The type of organizational structure in which jobs of similar nature are grouped
together on the basis of functions to form departments is called:
(A) Functional structure (B) Divisional structure
(C) Informal structure (D) Grouped structure
Q.5 The purpose of ‘Departmentalisation’ in the process of ‘organising' is:
(A) to adapt changes in the business environment
(B) to facilitate specialization
(C) to facilitate expansion and growth of the organization without interrupting the
existing operations
(D) to help in increasing managerial efficiency
Q.6 Name the concept which explains the manner in which decision making responsibilities
are divided among hierarchical levels.
(A) Organisational structure (B) Span of Management
(C) Delegation (D) Decentralisation
Q.7 'Organisations should have a chain of authority and communication that runs from top
to bottom and should be followed by managers and the subordinates.
Which principle of management given by Fayol is highlighted in the above statement?
(A) Authority and Responsibility (B) Discipline
(C) Scalar Chain (D) Centralisation and Decentralisation
Q.8 Which of the following statements is correct with reference to ‘organising' function of
management?
(A) Leads to systematic allocation of jobs and facilitates specialization
(B) Reduces the risk of uncertainty
(C) Helps in obtaining competent personnel
(D) Judges accuracy of standards
Q.9 Which of the following statements is true?
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(A) Accountability can be entirely delegated
(B) Accountability flows downward
(C) Accountability refers to answerability for final outcome of the assigned task
(D) Accountability means the right of an individual to command his subordinates.
Q.10 ‘Agile Pvt. Ltd.’ manufactures athletic footwear. Owing to its popularity among sports
teams across the country, it recently decided to enter into manufacturing of sports
clothing and accessories.
The type of organisational structures which is suitable for the company is
(A) Functional structure (B) Divisional structure
(C) Horizontal structure (D) Informal structure
Q.11 ‘SORT - IT Ltd.' is a leading software development company. The company is satisfying
the diverse needs of its employees. Its employees are given competitive salaries and
perks. They have been given chance for their personal growth and development. For
harmony in the organisation management has to reconcile personal goals with
organizational objectives. Identify the objective of management being met by ‘SORT -
IT Ltd.'
(A) Social (B) Personal
(C) Organisational (D) Both Social and Personal
Q.12 ‘While performing the organizing function, jobs are allocated to the members of each
department in accordance with their skills and competencies.'
Identify the step in the organising function being discussed above:
(A) Identification and division of work (B) Departmentalisation
(C) Assignment of duties (D) Establishment of reporting
relationships
Q.13 Assertion (A): Delegation is a pre-requisite to the efficient functioning of an
organisation
Reason (R): It enables a manager to use his time on high priority activities.
Choose the correct option:
(A) Both (A) and (R) are in incorrect
(B) (A) is correct, but (R) is incorrect
(C) Both (A) and (R) are correct and (R) is the correct explanation of (A)
(D) Both (A) and (R) are correct, but (R) is not the correct explanation of (A)
Fill in the blank type questions:
Q.14 __________ is a framework within which organisational activities are performed.
Q.15 Strict Rules and Regulations are followed in _________ organisation.
Q.16 Most of the rumours are spread by _________ organisation.
Q.17 The main purpose of _______________ is to reduce the workload of managers.
Q.18 The main purpose of _____________ is involvement of all the employees working at
different levels.
Q.19 Psychological and social needs get satisfied in __________ organisation.
Q.20 Functional Structure focuses on _____________ specialisation.
Q.21 Divisional structure focuses on ________ specialisation.
Q.22 Decentralisation is ________________ of Delegation
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Q.23 Selective Dispersal of Authority leads to ___________.
True or False type questions:
Q.24 Accountability can be delegated by using the process of delegation.
Q.25 In delegation, we multiply the authority with two, whereas in decentralisation, we
multiply with many.
Q.26 Formal organisation is dependent on informal organisation.
Q.27 As end result of organisation function, a structure gets created automatically.
Q.28 Formal organisation focuses on work only, and ignores human relations.
Q.29 Who reports to whom is made clear in establishing reporting relationship.
Q.30 A network of social and friendly interaction creates informal organisation.
Q.31 Span of management defines responsibility area of a manager.
Subjective type questions:
Q.32 State any three advantages that a functional structure offers to an organisation.
Q.33 State any three points which highlight the importance of delegation for an organisation.
Q.34 What is meant by span of management?
Q.35 Which organisational structure is suitable for a multi-product manufacturing company?
Q.36 Which organisational structure is suitable for a uni-product manufacturing company?
Q.37 Out of formal and informal organisation, which is dependent upon which?
Q.38 How is informal organisation created?
Q.39 Name the organisation in which employees are allowed to communicate freely and
there are no rules and regulations.
Q.40 Distinguish between formal and informal on the basis of purpose.
Q.41 Name the concept which reduces the workload of a manager.
Q.42 Define span of control.
Q.43 Define job description.
Q.44 In ABC ltd. all the decisions are taken by top level management only. Which policy is
followed by the organisation? Explain the drawback of this organisation.
Q.45 Which of the following is the ideal situation?
Q.46 Whether decentralisation increases the importance of subordinates or reduces it?
Q.47 If responsibility is more than the authority, what would be its impact on working of an
organisation?
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Q.48 What is the objective of decentralisation?
Q.49 What type of structures can a formal organisation have?
Q.50 Name the type of organisation in which (a) Friendly relationship exists among members
(b) Official relationship exists among the menbers.
Q.51 “Delegation of authority is based on elementary principle of division of work.” Explain
Q.52 “An organisation is manufacturing medicines, cosmetics, textiles and soaps.” What kind
of organisational structure is suitable for this organisation and why?
Q.53 “Authority can be delegated but accountability cannot be.” Explain.
Q.54 “The existence of informal organisation depends on the formal organisation.”
Comment.
Q.55 “A manager is of the view that he is not responsible for the quality of work that he has
delegated to his subordinate.” Do you agree to this viewpoint? Justify your answer by
giving proper arguments.
Q.56 The directors of Narmade Ltd. have asked their marketing manager to achieve a target
sale of 100 units per day. The marketing manager has delegated the task to his deputy
sales manager working under him. The deputy sales manager could not achieve the
target. Who is responsible for non-completion of task? Explain in brief the relevant
principle related to this case.
Q.57 National Vritech Ltd. has grown in size. It was a market leader but with changes in
business environment and with the entry of MNCs, its market share is declining. To
cope with the situation CEO starts delegating some of his authority to the General
Manager, who also felt himself overburdened and with the approval of CEO disperses
some of his authority to various levels throughout the organisation. Identify the concept
of management discussed above.
Q.58 State whether the principle of Scalar Chain is followed in informal organisation or not?
Q.59 State whether functional organisation is based on products. Draw the chart of a
functional organisation.
Q.60 What would be the effect of no delegation of work?
Q.61 Name the process of entrusting responsibility, authority and creating accountability of
the person whom work has been handed over. Explain the importance of this process.
Q.62 State the relationship between authority, responsibility and accountability.
Q.63 What should growing company adapt-centralised or decentralised policy?
Q.64 The number of subordinates that can be effectively managed by a superior refers to
which aspect of management?
Q.65 Grouping of jobs of similar nature and organising these jobs as separate departments
creates a particular type of organisational structure. Name that type of structure and
explain any two advantages and disadvantages of that structure.
Q.66 Is organisational structure essential to provide relationship between various positions in
the organisation?
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Q.67 State any one objective of organising.
Q.68 Kiran Industries is a company manufacturing office furniture. The company chose to
diversify its operations to improve its growth potential and increase market share. As
the project was important, many alternatives were generated for the purpose and were
thoroughly discussed amongst the members of the organisation. After evaluating the
various alternatives Sukhvinder, the Managing Director of the company decided that
they should add ‘Home Interiors and Furnishings’ as a new line of business activity.
(a) Name the framework, which the diversified organisation should adopt, to enable
it to cope with the emerging complexity. Give one reason in support of your
answer.
(b) State any two limitations of this framework.
Q.69 ‘Shan Spices Ltd.’ is the manufacturer of different food specific spices like Rajmaa
Masala, Cholley Masala, Aaloo Parantha Masala, etc. Mr. Raghav, the owner of the
company has created different departments for purchase, production, marketing,
finance and human resource. There are thirty employees working in the organisation.
Planning is of paramount importance to the company as Mr. Raghav believes that
effective planning leads to achievement of organisational objectives. So in order to
make employees focus on objectives, he issued instructions that during working hours
only official matters will be discussed. He made certain rules and code of conduct for
the employees to follow, according to which employees are not allowed to visit and talk
to the employees of other departments except for official work. He emphasised on work
performance which resulted in smooth functioning of the organisation.
(a) Identify and state the type of organisation mention^ in the above para.
(b) State one feature of the concept identified m part (a) as mentioned in the above
para.
(c) What was the purpose behind the formulation of rules for the employees that
restated their personal communication with the employees of other
departments?
Q.70 Rohan, a sole proprietor, was running food catering business in North Delhi. He got
great success and profit margin in this business. Due to excess demand in the market
he expanded his business and separated departments as purchase, production, finance
and marketing.
Which type of organisational structure would you suggest him? Enumerate its two
benefits.
Q.71 The Principal of ABC Public School ordered the staff that they will be allowed to sit in
the staffroom situated in their block. No teacher will be allowed to sit in another
staffroom. During school's hours, teachers can meet teachers of their department only
for work-related matters. He wants each teacher to strictly work as per rules and
directions given by him.
Identify the type of organisation in this and state disadvantage of such organisation
Q.72 Vishal is a production manager in an auto company. He held a meeting with production
unit including supervisor, foreman and employees. He sets the target to produce 1,000
units in one month and assures them to give full co-operation. He delegates powers to
operational level to achieve the targets in the time.
(a) Identify organisational activity which Vishal communicated to his subordinates
and explain its benefits.
Q.73 A Manager increased the production target from 500 units to 700 units per month but
the authority to draw raw material was not given by him. The employees were not able
to meet the new target. Who should be held responsive for this and which principle has
been violated here? Explain.
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Q.74 Manager of XYZ Ltd. is overburdened with routine work and unable to concentrate on
its objectives and other important issues of the firm. To solve this problem which
management concept should be followed by the manager? Also explain the related
function.
Q.75 “The responsibility of a firm should be divided among various levels such as top level
middle level, and lower level”. Identify the concept of management function and sate
its importance.
Q.76 Royal Ltd. decided that whenever a person reaches a particular age, he will be
promoted. Influenced by this plan of the company, several employees from other
companies also joined the firm. But within few days they relised that the firm has pre-
determined relation structure without free communication.
On the basis of this, answer the following questions.
(a) Identify the type of organisation described here.
(b) Point out any two limitations of this type of organisation.
Q.77 Bhuvan & Co. are running a shoe manufacturing company successfully. So they
planned to expand their business activities by adding more line of products, i.e., leather
bags, belts and garments. Which type of structure would you recommend after
expansion and why?
Q.78 A company manufacturing sewing machines set up in 1946 follows formal organisation
structure. It is facing a lot of problems such as delays in decision-making. As a result, it
is not able to adapt to the changing business environment. The work force is also not
motivated There is a problem of red tapism and employees’ turnover is very high.
You advise the company with regard to change it should bring about in its organisation
structure to overcome the problems faced by it. Give reasons in terms of benefits it will
derive from the changes suggested by you. In which sector can the company diversify
keeping in mind the declining market for the product the company is manufacturing.
Q.79 After completing a course in Travel and Tourism, Vaibhav started his own travel
agency. In order to ensure smooth functioning of his business, he decided to create
fourteen job positions including online query, reservation department, accommodation
booking department and sequring payment department. In order to avoid conflicts, he
clearly assigned the line of authority and area of responsibilities for each job position.
(a) Which fusion of management is being described in the above lines?
(b) Identify the framework created by Vaibhav.
(c) Name the type of framework created by Vaibhav.
(d) Give two advantages of that frame work.
Q.80 Kirpal Singh owns a pet clinic in Delhi. The clinic is being run by a team of experienced
Veterinary professionals for last 25 years.
Kirpal pet is special effort to improve interpersonal relationships. When he interacts
with his employees, he arranges every year a picnic for his staff so that they become
fresh from their routine life. He always takes employees’ suggestions toward new plans
and policies.
Q.81 Karan opens a retail mart in local market. As he knows it will be impossible for him to
handle all work alone, he appoints Johar to perform task on his behalf, thereby reducing
the workload. This decision provided Karan with more time to concentrate on important
matters. Besides he recruits, eight other persons as support staffs. Over the year his
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business earned a good name for itself. So, he opens another outlet in the city.
Considering Johar's competence, he gives the independent charge of running the new
outlet to him, thereby empowering him autonomy in functioning of the outlet.
(i) Identify the two concepts which reflect the role of Johar in above case.
(ii) Give four points of difference between both the concepts.
Q.82 Sita and Gita are twin sisters. After completing a course in Journalism both of them
joined a leading newspaper company as sub-editors. Over the years, due to their
hardwork, they are promoted to the post of chief editor in different divisions. However,
the way of their functioning is totally different. Sita believes in capabilities of her
subordinates. Therefore, she follows policy of selective dispersal of authority in all
levels of other division.
On the other hand, Gita prefers to function through strict control and retains all the
decisions making authority with herself.
In the above context, state the concept used by Sita and Gita.
Case based study type questions:
Read the following text and answer question number 83 – 88 on the basis of the
same.
‘Saarthi’, the name has been associated with the manufacturing and sale of Fashion pr oducts
since 1960, when Kapil Saarthi opened his first retail fashion clothing outlet in Ahamedabad.
Sarthi Cosmetics was incorporated in India in 1940, and became a member of the S&M family
of companies is 1959. Sarthi Perfumes began operations in Gujarat in an existing
administration S&M facility in 1985. An important difference between S&M and most other
companies is that instead of operating as one large corporation it operates as 180 smaller
companies each focused on a specific product and area, implying selective dispersal of
authority, recognizing the decision makers need four autonomy, as decision making authority
is pushed down the chain of command. It enables the company to maintain short lines of
communication with customers and employees, and accelerate the development of talent.
Q.83 Identify the philosophy that is being followed by S&M through which it is dividing the
decision making responsibilities among hierarchical levels.
(A) Delegation of authority (B) Decentralization of authority
(C) Division of work (D) Span of management
Q.84 ‘Why is there, need to apply the philosophy being followed by S&M, with caution?
(a) As it can cause a delay in communication
(b) As it can cause disintegration of the organisation
(c) As it can increase the workload of the top management
(d) As it can reduce the chances of growth of the firm
Q.85 The application of the philosophy discussed above can foster a sense of competition
amongst the departments, which in turn will help the firm in the following manner:
(A) Facilitates growth (B) Batter Control
(C) Relief to top management (D) Quick decision-making
Q.86 Quote the line from above which highlights the importance of the philosophy towards
providing management education of employees.
(A) ‘Maintain short line of communication’
(B) ‘Accelerate the development of talent’
(C) ‘Selective dispersal of authority’
(D) ‘Recognise decision makers need for autonomy’
Q.87 As “The decision making authority is pushed down the chain of command” at S&M
enterprises, it provides the benefit of quick decision-making to the organisation
because:
(A) There is not requirement for approval from many levels.
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(B) Organisation is able to generate more returns.
(C) There are innovative performance systems.
(D) It’s a means of management education.
Q.88 The philosophy being followed by S&M is not followed by most other companies. This
tells us that the philosophy is:
(A) Optional (B) Compulsory
(C) Limited to superior and his subordinate (D) Merely done to lessen the burden of
the manager
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