NCERT Solutions Class 12, Business Studies, Chapter- 5, Organising
Very Short Answer Type:
1. Identify the network of social relationships which arises spontaneously due to interaction at work.
Solution:
Informal Organization is the network of social relationships that arises spontaneously due to interaction at work.
2. What does the term ‘Span of management’ refer to?
Solution:
Span of management refers to the number of subordinates that can be effectively managed by a superior or any higher authority. It determines the level of management in the structure.
3. State any two circumstances under which the functional structure will prove to be an appropriate choice.
Solution:
Two circumstances under which functional structure can be an appropriate choice are:
- Large size of the organization
- Requirement of Specialization in the organization
4. Draw a diagram depicting a functional structure.
Solution:
![diagram](https://www.sarthaks.com/?qa=blob&qa_blobid=7802629794915124378)
5. company has its registered office in Delhi, manufacturing unit at Gurgaon and marketing and sales department at Faridabad. The company manufactures the consumer products. Which type of organisational structure should it adopt to achieve its target?
Solution:
The company should adopt ‘Functional Organizational Structure’ to achieve its target because it promotes control and co-ordination, reduces cost and assists in efficient management.
Short Answer Type:
1. What are the steps in the process of organising?
Solution:
Organising involves following steps that need to be taken in series
(i) Identification and Division of Work: Organising process begins with identifying and division of total work into small units, it focuses on specialization. So that, duplication of work can be avoided.
(ii) Departmentalisation: After dividing the work, related and similar jobs are grouped together and put under one department it can be on the basis of regions, area, work, process, nature, function.
(iii) Assignment of Duties: After departmentalisation, the work is assigned according to the skills and competencies of individuals. It is done on the basis of specialization, it helps in reduction of wastages and overlapping of resources.
(iv) Establishing Reporting Relationship: Assigning duties is not enough. Each individual should also know, from whom he has to take orders and to whom he is accountable. Thus, reporting relationship helps in co-ordination among various departments.
2. Discuss the elements of delegation.
Solution:
The elements of delegation are as follows:
(i) Authority: It refers to the right of an individual to command his/her subordinates and to take action within the scope of his position. The concept of authority arises from the established scalar chain and unity of command, which links the various job positions and levels of an organisation. It must be noted that authority is restricted by laws and the rules and regulations of the organisations. Authority flows down-wards and it can be delegated i.e., the superior has authority over the subordinate.
(ii) Responsibility: Responsibility is the obligation of a subordinate to properly perform the duty assigned by his/her superior. It arises from a superior-subordinate relationship because the subordinate is bound to perform the duty assigned to him by his superior so, responsibility flows upward.
(iii) Accountability: Accountability is an obligation or a liability for a subordinate which is created by the superior for the use of authority and responsibility of actions undertaken for business operation.
3. How does informal organisation support the formal organisation?
Solution:
The ways in which informal organisation support formal organisation:-
- Prescribed lines of communications are no followed. So it leads to faster spread of communication and quick feedback.
- It fulfils the social needs of the employees and maintains a good environment in the organisation. It enhances their job satisfaction and gives them a sense of belongingness in the organisation.
- It contributes to the fulfilment of the objective of the organisation by compensating for inadequacies in the formal organisation.
4. Can a large sized organisation be totally centralised of decentralised? Give your opinion.
Solution:
No, a large sized organisation cannot be totally centralised and decentralised. With its increased size and complexity, there is a tendency to move towards decentralised decision making. The employees who are directly and closely involved with certain operations tend to have more knowledge than the top order management. So there is a need for balance between these co-existing forces.
5. Decentralisation is extending delegation to the lowest level. Comment.
Solution:
Decentralisation refers to the manners in which decision making responsibilities are divided among hierarchical levels. It refers to delegation of authority throughout all the levels of the organisation. Decision making authority is shared with the lower levels and is consequently placed nearest to the point of action. This decision making authority is pushed down the chain of command. Delegation is the process and decentralisation is the end result.
6. Neha runs a factory wherein she manufactures shoes. The business has been doing well and she intends to expand by diversifying into leather bags as well as western formal wear thereby making her company a complete provider of corporate wear. This will enable her to market her business unit as the one stop for working women. Which type of structure would you recommend for her expanded organisation and why?
Solution:
Neha should go for divisional structure because:
(i) She will diversify the units into various product lines.
(ii) This structure would enable her to know the profit margins from each product line so that she can plan accordingly and select the specific product for the future diversification.
(iii) It will ease the further expansion without bothering the existing units.
7. The production manager asked the foreman to achieve a target production of 200 units per day, but he doesn’t give him the authority to requisition tools and materials from the stores department. Can the production manager blame the foreman if he is not able to achieve the desired target? Give reasons.
Solution:
No, Production Manager cannot blame the foreman for the non-accomplishment of work since he has violated the principle of ‘Parity of Authority and Responsibility’. A subordinate when given the responsibility of fulfillment of a particular task, then he/she should be given appropriate authority for the same.