Rahunath works as a human resource manager in ‘Vanshika Housing Ltd.

’ a company engaged in the real estate

business. He suggests to the Managing Director of the company to start a sports club in the office where
friendly indoor matches can be organised amongst the employees on every Saturday. In context of the above
case:
(a) Identify the type of organisation that Rahunath is desirous of promoting in the company. (b) State any three
advantages of the type of organisation as identified in part (a) of the question.
Answer: (a) Informal organisation is the type of organisation that Rahunath is desirous of promoting in the
company.
(b) The three advantages of informal organisation are stated below: It leads to faster spread of information as
well as facilitates quick feedback. It helps to fulfill the social needs of the members by giving them a sense of
belongingness in the organisation and enhances their job satisfaction. It contributes towards the fulfillment of
organisational objectives by compensating for inadequacies in the formal organisation.

A Company named Mahi Cycles has decided to start a new branch in the Middle East. The company has
recognised the amount of work to be done in number of hours. The company has found out that it will take
25000 hours of man work and has subsequently divided the number of hours for different operations. The real
challenges of the company begin here. Very methodically responsibility of the recognized amount of work has
been given to different individuals according to their capabilities. Which function of management is highlighted
above? Identify the two steps of this function indicated above.
Answer: The function of management which is highlighted above is ‘Organising’.
The two steps of Organising which are indicated in the above case are:
Step 1: Identification and division of work. The Company has found out that it will take 25000 hours of man
work and has subsequently divided the number of hours for different operations.
Step 2: Assignment of duties. Very methodically responsibility of the recognized amount of work has been
given to different individuals according to their capabilities.

Aasmaan Colours’ is a profit making colour producing company. The company deals in making different types
of colours used in painting. The organisation has always been systematic in its approach and due to good
organizing has seen a continuous increase in its revenue. Workers are given their respective jobs clearly which
leads to gaining of experience since they do their respective jobs on a regular basis leading to high productivity.
The organisation has many challenges and it wants to improve. There is no doubt in the lines of communication
and everyone knows who has to report whom. With passage of time, there is more need to connect with the
employees. They are the most important asset to the organisation. When managers delegate work to their
subordinates they set themselves free from routine jobs and this leads to great amount of learning for the
subordinates in practical situations. Which importance of organizing has been highlighted in the above case?
Answer:
The importance of organizing highlighted in the above case:
Benefits of specialisation.
Workers are given their respective jobs clearly which leads to gaining of experience since they do their
respective jobs on a regular basis leading to high productivity.
Clarity of working relationships. There is no doubt in the lines of communication and everyone knows who has
to report to whom.
Development of personnel. When managers delegate work to their subordinates they set themselves free from
routine jobs and this leads to great amount of learning for the subordinates in practical situation.

Describe any three merits of informal orgnaisation structure

Ans. Speed, proper feedback, can provide support to formal organisation

Distinguish between divisional and functional structure on any three basis

Ans.

BASIS DIVISIONAL STRUCTURE FUNCTIONAL STRUCTURE

Formation On the basis of different On the basis of product

function

Ease of training less more

specialisation occupational functional

Distinguish beween authority, responsibility and accountability

Ans.

basis Authority Responsibility Accountability

meaning Right to command Obligation to perform an Answerability for outcome of

assigned task. the assigned task.

delegatio Can be delegated Cannot be entirely delegated Cannot be delgated at all

n

Origin Arises from formal position . Arises from delegated Arises from responsibility
authority

flow Flows downward from Flows upward from Flows upward from subordinate
superior to subordinate. subordinate to superior to superior

Describe any three features of formal organisation?

Ans. Emphasis on work only
Follows scalar chain of communication
Ensures sytematic flow of work and ensures coordination

What are the elements of Delegation of Authority.

Ans. Authority, Responsibilty, Accountability

Differentiate between ‘Delegation’ and ‘Decentralisation’ on any four bases.

Ans.

Basis Delegation Decentralisation

Nature Delegation is a Decentralisation is an optional policy

compulsory act because
no individual can decision. It is done at
perform all tasks on his the discretion of the
own. top
management.

Freedom There is more control by There is less control over executives,

of action superiors hence
hence
less freedom to take own greater freedom of action
decisions.

Status It is a process followed It is the result of the policy decision of top management
to share workload

Explain any four benefits of organizing function of management

Ans. Specialisation
Clarity in working relationship
No duplication of work
Effective administration,
Optimum utilisation of available resources

Decentralisation is an optional policy. Explain why an organisation would choose to be decentralised.

aANS. Imp of decentralisation ( any four points)

Distinguish between centralisation and decentralisation on any four basis

BASIS CENTRALISATION DECENTRALISATION

NATURE Top management or few people have Authority is systematically distributed to the
entire control lowest level
 FREEDOM OF No freedom or autonomy Greater degree of autonomy
ACTION

Suitablity For small organisation For large organisation

Distinguish between formal and informal organization on any four basis

Ans

Basis Formal Organisation Informal Organisation

meaning Structure of authority relationships created Network of social relationships arising out of
by the managemen interaction among employees

Origin Arises as a result of company rules and Arises as a result of social interaction
policies

Behaviour It is directed by rules There is no set behaviour pattern

Leadershi Managers are leader Anyone can be leader

p

Diligent developers, a website design company in Bangalore is a startup initiative of Mr. Maniraj which aims at
achieving a profit margin of 10% in its first year. Mr. Maniraj appointed Mr. Advait as the Digital marketing
Head, Mr. Kiyansh as the head of Backend department and Mr. Nirved headed the Graphics Designing
Department. Since each head was specialised in specific skills, it resulted in increased efficiency and better
coordination. However, problems arose when Mr. Advait started considering group objectives superior to
organisational objectives and stopped exchanging information with Mr. Kiyansh and Mr. Nirved. The company
had to bear the brunt of lack of coordination and was unable to achieve its objectives. a) Identify and state the
organisational structure adopted by the company. b) State two benefits and two limitations of the identified
structure highlighted in the above case.
Ans.
a) The organisational structure adopted by Diligent Developers is Functional structure . Functional structure is
an organisational design that groups similar or related jobs together.
b) Benefits of functional structure: 1) It leads to occupational specialization since emphasis is placed on specific
functions.This promotes efficiency in utilization of manpower as employees perform similar tasks within a
department and are able to improve performance.
2) It promotes control and coordination within a department because of similarity in the tasks being performed.
Limitations of functional structure:
(a) A functional structure places less emphasis on overall enterprise objectives than the objectives pursued by a
functional head. Such practices may lead to functional empires wherein the importance of a particular function
may be overemphasised. Pursuing departmental interests at the cost of organisational interests can also hinder
the interaction between two or more departments.
(b) It may lead to problems in coordination as information has to be exchanged across functionally
differentiated departments

Jojo and Jojo is a company known for its consumer business of baby oil and bandages, but many people do not
know that the company also runs a medical device and diagnostics business, as well as a pharmaceutical
company. With more than 1,80,000 employees worldwide the company has chosen to share decision making
authority with lower levels and place it nearest to the point of action. Therefore the response does not take time.
This 6 propagates the belief that people are competent, capable and resourceful who can get a chance to prove
their abilities. And enables the company in identifying those executives who have the necessary potential to
become dynamic leaders, so that the checking required on decisions taken by lower levels of management is the
least. This makes it possible to evaluate performance at each level and each department can be individually held
accountable for their results. By quoting the lines given above identify and briefly explain the benefits of the
concept discussed above
Ans.
Importance of Decentralization:
1. “Response does not take time”. Quick decision making- In a decentralized organization since decisions are
taken at levels which are nearest to the point of action and there is no requirement for approvals from many
levels, the process is much faster.
2. “Who can get a chance to prove their abilities”. Develops managerial talent for the future- Decentralization
gives managers a chance to prove their abilities and creates a reservoir of qualified manpower that can be
considered to fill up more challenging positions through promotion.
3. “Identifying those executives who have the necessary potential to become dynamic leaders”. Develops
initiative among subordinatesDecentralization helps to promote self-reliance and confidence amongst the
subordinates. It also keeps them in a state wherein they are constantly challenged and have to develop solutions
for the various problems they encounter.
4. “This makes it possible to evaluate performance at each level and each department can be individually held
accountable for their results.”
Better control- Feedback from levels helps to analyze variances and improve operations.

Explain process of organising?

Ans. Identification and Division of work
Grouping of job and departmentalisation
Assignment of Duties
Establising Authority Responsibilty Relationships
( Proper explanation)

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 by leaps and bounds 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,
Identify and briefly explain the concept used by Aman Chadha in the above case which helped him in focusing
on objectives.
Also, state any five points of importance of the concept identified in (a) above.

Answer:
The concept used by Aman Chadha in the above case is delegation.
Delegation is the entrustment of responsibility and authority to another and the creation of accountability for
performance which helps a manager to extend his area of operations. Importance of delegation:
1. Effective management. By delegation managers get freedom from d from doing routine work. They get more
time to concentrate on important matters.
2. Employee development. As a result of delegation, employees get more opportunities to develop new skills. It
makes them better future managers.
3. Motivation of subordinates. Delegation of authority enhances the status of subordinates; and provides
motivation to them, to improve their performance.
4. Facilitates organisational growth. Delegation helps in growth and expansion of the organisation by providing
a ready workforce to take higher level responsibilities.
5. Basis of management hierarchy. Delegation of authority establishes superior- subordinate relationship which
is the basis of hierarchy of management

An organisation is working by clubbing similar related jobs under different departments. The HR department is
not in direct touch with the Marketing Department and this has created problems. The HR head feels that he
only knows about the HR department and similar is the case with the Marketing department. However the truth
is both of them have limited and specific skills.
(a) Which type of organisation structure does this organisation has?
(b) Explain any 3 advantages and 2 disadvantges of the structure identified in part (a)
Answer: (a) The type of organisation structure which is present is functional structure. Similar related jobs are
clubbed under one department.
(b) Three advantages of functional structure are It helps in increasing coordination among the various activities
of the business as the closely related activities are grouped under the same department. The specialisation,
which comes out due to division of work here is based on occupation/ job/activity. All the tasks of managerial
and operational nature are properly taken care of under functional structure. .
Two disadvantages of functional structure are
The departmental goals in the functional structure take importance over the organisational goals.
The functional heads have experience and knowledge only about their departments leading to their inflexible
attitude towards each other.