MCQ CH - 5 Organising
MCQ CH - 5 Organising
ORGANISING
Learning objectives:
Explain the concept and importance of organising
Describe the steps involved in
the process of organising;
Identify and explain the features, merits and limitations of functional
organisational structure; and divisin
visional
Distinguishbetween functional and divisional structure;
State the
meaning, features, merits and limitations of formal
and
organisation; informa
rmal
Differentiate between formal and
informal organisation; explain the concept.
importance and elements of delegation;
State the
concept of centralisation and decentralisation;
Explain the importance of centralisation,
delegation and decentralisation; and
Distinguishbetween delegation and decentralisation.
Important Definitions
Concept
Definition
Organisings Organising is the
process of defining and
enterprise and
establishing grouping the activities of the
realisation of the desired authority relationships among
goals. them for the
Hierarchy Hierarchy is the ranking of job positions on
responsibilities. the basis
of relative roles and
Organisational The
organisationalandstructure can
structure which managerial be defined the
as
operating tasks are performed. framework within
Span of Svan of
management
management refers to the number of
be effectively managed by a
management in the structure. superior.
This subordinates that can
determines the levels
el of
Delegation of Delegation of authority merely
authority subordinates to operate within means the granting of author.
prescribed limits. ority to
Decentralisation Decentralisation refers to systematic dispersal of
level exceptthat wvhich can authority to the 1
be exercised at central
points.
Hierarchy
Ranking of job positions
1. Organisational structure
within which managerial and
Framework
2. tasks are performed
operating
subordinates that can be Span of management
Number of
3. by a superior
effectively managed
with Delegation of authority
of work and responsibility
4. Sharing
subordinates
Centralisation
Concentration of
decision making at top level
5. Decentralisation
of authority to the
6.
Systematic dispersal
lowest level
Functional organisational structure
Occupational specialisation
7.
goals of the Formal organisation
created to achieve
8. Organisation
enterprise
Informal organisation
9.
Network of social relationships
Functional organisational structure
10. One product company
Divisional organisational structure
Spreading of rumours
Informal organisation
12.
Organising 69
Description
S.No. Concept
(a) Offers benefits of specialisation- It leads
to a systemati
2 Importance of allocation of jobs amongst the work force as Ste
organising
employees are assigned specific jobs on a regular
basis. specific
(b) Clarity in working relationships- By
hierarchical order, organising enables theestablishi
fiyat
responsibility and specification of the on of
to be exercised by an individual
organisational
Divisional Structure
structure
flexibility
(c) It leads to faster decision making, promotes
division functions as an
and initiative because each
autonomous unit.
Organising8 71
S.No. Concept Description
(a) There may be conflicts among the
9. Disadvantages of
heads,
as in pursuit of higher
different
divisional structure profits, each of the
seek maximum allocation at the cOst of
other them ma
(b) The cost is high as each division is
provided wil
divisioms
set of similar functions eparate
(c) The managers are
provided with the
authority toa c.
all activities related to
time, such a manager may gain power and
a
particular division. Supervise
In co
course o
bid to a in a
his independence, may ignore organisational intereste
assert
10. Types of organisation Formal Organisation Informal Organisation
11. Features of formal (a) It specifies the reporting
organisation relationships among various ish
positions.
(b) It is a means to achieve the organisational objectives.
(c) It seeks to co-ordinate the efforts of various
departments.
(d) It is
deliberately created by the top management to facilitate
the smooth
functioning of the organisation.
(e) It places more
emphasis work to be performed rather
on
than
interpersonal relationships among the employees.
12. Advantages of (a) It is easier to fix
responsibility since reporting relationships
formal organisation are clearly specified.
organisation
(b) Sometimes it may restrict growth of the
organisation by
strongly opposing to the proposed change.
Organisin8 73
Concept Description
S.No.
Importance of
(a) It seeks to develop initiative in the suhow
18
decentralisation promoting self-reliance and
Pro
am
and also helps to identify those executives w
confidence ordiongstnatestherbym
necessary potential to become dynamic leadersho have the
rs.
(b) It provides relief to top management, as the suh
are allowed to rdin
operate independently within thoiatay
jurisdiction. Consequently, the need for direct sun f
is reduced.
superviin
(c)It facilitates quick decision making,
allowed to act
as the emole.
are
independently within their
heir areayee
are
jurisdiction without consulting others.
(d) It develops
managerial talent tor the future by providi
the employees with the
necessary and training experiene
through exposure to varied challenging jobs als and
facilitates identification of those employees who
may and
those who may not be successful in
assuming greater
responsibility
(e) It facilitates growth of the
organisation by its increasing
productivity and profitability through assigning greater
autonomy to the lower levels of management as well as
divisional or departmental heads.
(6)It facilitates better control by ensuring continuous
evaluation of performance at each level and the
of each
contribution
department so that they can be individually held
accountable for their results.
It is rigid. It is flexible.
6. Nature
Managers are leaders Leaders are chosen by the
.
Leadership not be the
group, so they may
managers.
Organising 75
Authority Responsibility
S.No.
2
Basis
Delegation Can be delegated. Cannot be entirely Accountbe abil
Cannot
Arises from formal
delegated
Arises from
at all.
delegatet
Origin Arises from
position in the delegated authority
organisation responsibility
Flows downward Flows upward
4. Flow
from superior to from subordinate to
Flows upward
fron subordinate t
subordinate. superior. t
superior
Difference between Delegation of Authority and Decentralisatin
ion
S.No. Basis Delegation of Authority
Decentralisation
1 Nature It is compulsory act, because
a It is
no individual can perform all and is
an
optional policy decision
tasks on his own.
only implemented
at the discretionoof the
top
management.
2 Freedom of The subordinates have less The control over executives is
action freedom to take own decisions as less, hence
there is more control exercised by freedom
they have a greater
the superiors.
of action.
3. Status It is a
process followed to share It is the result of the
policy
tasks. decision of the top management.
4. Scope It has a narrow scope, as it It has a wide scope, as it
is limited to superior and his implies
extension of delegation to the
immediate subordinate. lowest level of management.
5. Purpose To lessen the burden of the To increase the role of the
manager. subordinates in the organisation
by giving them more autonomy.
6. Withdrawal Easy, as only two persons are Difficult, as it involves the
of authority involved in the process. extension of delegation to the
lowest level of
management.
MULTIPLE CHOICE QUESTIONSS
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1.Name the process which co-ordinates human efforts, assembles
resources and
integrates both into a unified whole to be utilised for achieving specified objectives.
(a) Management (b) Planning
(c) Organising (d) Directing
above
All of the
(d)
e i s defined as the framework within which managerial and operating tasks are
performecd
Organising 77
functional structure?
of the following is not a merit of
12. Which
co-ordination within a department
control and
(a) It promotes as the focus is only on l
(b) It makes training of employees easier, a
limited ange of
skills
different products get due attention.
(c) It ensures that
(d) It leads to occupational specialisation.
Creative Head in an entertainment company u.
13. Rishabh has joined as a
ensures that the work has been divided into small and manageable activitiesay
grouped together. Identify the
and ways
alalso
the activities of similar nature are
related
mentioned in the above lines. in
organising8 process being
(a) Identification and division of work (b) Departmentalisation
(c) Assignment of duties (d) Establishing reporting relationshins
14. Indigo Limited has a staff of 300 people which is grouped into different departmens
Onships
tments.
The organisational structure depicts that 100 people work in Production departmen
nent,
150 in Finance department, 20 in Technology department and 30 in Human urce
department. Identify the type of organisational structure being followed
company.
(a) Functional structure (b) Divisional structure
(c) Informal structure (d) None of the above
15. Which of the following is not a merit of divisional structure?
(a) It promotes product specialisation.
b) It ensures that different functions get due attention.
(c) It promotes flexibility and faster decision making.
(d) It facilitates expansion and growth as new divisions
16. Which of the following is not a demerit of divisional structure?
(a) It is an expensive structure to maintain, since there may be a duplication of
activities across products.
(b) All functions related to a particular product are integrated in one
department.
(c) Conflict may arise among different divisional heads due to different interests.
(d) Authority provided to the
managers to supervise all activities related to a
particular division may lead to undesirable consequences.
17. Identify the correct sequence of steps to be followed in an
organising process.
(a) Departmentalisation, Establishing reporting relationships, Assignment of duties,
Identification and division of work
(b) Identification and division of work, Departmentalisation, Assigrnment of duties,
Establishing reporting relationships
(c) Identification and division of work, Assignment of duties,
Establishing reporting relationships
Departmentalisation.
(d) Identification and division of work, Establishing
reporting relationships.
Departmentalisation, Assignment of duties
Lakshay
has een given the task of arranging for five-day conference for foreign
es. In
19. delegates. In order to ensure smooth functioning of the event, he has made two
co-ordinators to take care of activities related to registration and refreshment.
as
people
function of management being carried out by Lakshay.
identify the (c) Organising (d) Directing
(a) Planning
(b) Staffing
following is not a feature of formal organisation?
n0Which of the various job positions.
specifies the relationships among
al lt
behaviour of employees are evolved from group normns.
The standards of
the top management.
(c)Itis deliberately designed by
relationships among the employees.
d) It places less emphasis on interpersonal
is nota merit of formal organisation?
21, Which of the following
for mistakes.
It is easier to fix responsibility
(a)
of command is followed.
(b) Scalar chain
achievement of organisational goals.
(c) It leads to effective
feedback.
(d) It leads to faster spread of information and rapid
formal
organisation?
22. Which of the following is not a demerit of
(a) It may lead to procedural delays.
of rumours.
b) It may lead to spreading
laid down policies.
(c) It emphasises on following rigidly
work rather than the relationships.
(d) It places more importance on
23. Which of the following is not a feature of informal organisation?
Organising 79
25. Which of the following is not a demerit of informal organisation?
(a) It leads to spreading of rumours.
() it gives more importance to structure and work.
(c) It may restrict implementation of changes wilhin the organisation
(d) lt puts psychological pressure on members to conform to group exn
even it they are against the interest of organisation. pectat
26. Which of the following is not an element of delegation?
(a) Responsibilty (b) Authority
(c) Accountability (d) Decentralisation
27.It arises from the established scalar chain which links the various job position.
levels of an
organisation. and
(a) Responsibility (b) Authority
(c) Accountability (d) All of the above
28. The authority flows from
(a) Bottom to top (b) Top to bottom
(c) In all directions (d) None of the above
29. The scope of
authority. as we go higher up in the management hierarchu
(a) Increases (b) Decreases
(c) Remains same (d) None of the above
30. It is the
obligation of a subordinate to properly perform the assigned duty.
(a) Responsibility (6) Authority
(c) Accountability (d) All of the above
31. The
responsibility flows
(a) In all directions
(b) Downwards
(c) Upwards (d) None of the above
32. Authority granted to an
employee should be
(a) More than the responsibility entrusted to him
(b) Less than the responsibility entrusted to him
(c) Equal the responsibility entrusted
to to him
(d) All of the above
33. It helps the managers to ensure that their subordinate discharges his duties
(a) Responsibility properly.
(b) Authority
(c) Accountability (d) All of the above
34. The accountability flows
(a) In all directions
(b) Downwards
(c) Upwards (d) None of the above
35. Which of the following be
can
delegated?
(a) Responsibility b) Authority
(c) Accountability (d) All of the above
(c) Fragmented
(d) None of the above
ANSWERS
Organising 81
31. (c) a subordinate is responsible to his superior
32. (c)
33. (c) accountability is answerability
34. (c) a subordinate is accountable to his superior
35. (b) 36. (a) 37. (a) 38. (a) 39. (c)
40. (b)
concept.
6 Cumona is a simple girl, who has recently joined an IT company in Pune. She often
ohserves that most of her colleagues go for a party on weekends with their boss,
Seema. ldentify the type of organisation being described in the above lines.
17. Ketan has recently joined a financial services company. During a meeting, the
General Manager proposed some changes in the work culture. Although personally
Ketan approved of the changes recommended by him, but due to the pressure from
his colleagues, he could not voice his true opinion in the meeting. Identify the type
which restricted the behaviour of Ketan.
oforganisation
18. After completing a course in journalism, when Vidhu joined a publication company
she was assigned a challenging media coverage project by her superior. This helped
to boost her self esteem and improve her confidence from day one. Identify the
point of importance related to the concept being described in the above lines.
19. Sambhavna runs a chain of low cost fashion wear outlets in various parts of the
country. As the taste and preferences of the consumers vary from one region to
another, she hires competent, capable and resourceful managers and gives them an
opportunity to work independently at local level. At the same time, they are expected
to assume the responsibility for the effective implementation of their decisions with
regard to various aspects like colours, textures, design etc. related to the garments.
Identity the concept described in the above lines.
ANSWERSS
1.
Span of management
2. Organisational structure
3. Informal organisation
Organising 83
4. Functional organisational structure
5. Divisional
organisational structure
6. Functional organisational structure
7. Divisional
organisational structure
8. Divisional
organisational structure
9. Functional
organisational structure
10. Delegation of authority
11. Divisional organisational structure
12. Formal organisation
13. Formal and informal
14. Informal organisation
organisation
15.
Span of managenment
16. Informal organisation
17. Informal organisation
18. Motivation of
19. Decentralisation
employees