5

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.

68 MCQs in Business Studies-XII

 Clue words Concept
S.No.

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

11 Multiple product company

Spreading of rumours
Informal organisation
12.

Key concepts at a glance

S.No. Concept Description

Identification and division of work- It is done
in
1. Steps involved in the (a)
accordance with predetermined plans to avoid duplication
process of organising
of activities and ensure that the burden of work is being
shared among the employees.
It involves grouping of similar
(b) Departmentalisation-
activities into departments, units, sections etc. using
several criteria as a basis to facilitate specialisation.
(c) Assigment of duties- It is done to the members as per
their job positions. Once departments have been created,
each of them is placed under the charge of an individual.

(d) Establishing reporting relationships- While assigning

jobs, each member is told that from whom he/she has to
take orders and to whom he/she will be accountable. The
establishment of such clear reporting relationships helps
to create a well defined hierarchical structure.

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

(c)Optimum utilisation of resources-

allocation of jobs, and minimising the wastage
ofre
Through proper
and efforts, organising leads to
resources.
optimum utilisationn resource
of

(d) Adaptation to change-Ithelps to create astable

by incorporating changes in the organisational organisation
structure a
per the needs of the changing environment.
(e) Effective administration- By providing a clear
of jobs and related duties, description
organising helps to avoid
confusion and duplication.
() Development of personnel- Delegation helps to build the
ability of the subordinate to deal effectively with
challenges
and helps them to realise their full
potential.
(8) Expansion and growth-Organising enables an organisation
to deviate from existing norms and take
up new challenges.
Types of Functional Structure
.

organisational
Divisional Structure
structure

4 Features of (a) A functional structure is an

organisational design that
functional structure groups similar or related jobs together on the basis of
functions like production, finance etc.

b) Each department has a functional manager who is

responsible for pertormance and who has authority over
the department.

(c) All departments are under the charge of a

head. co-ordinating
(d) These departments may be further divided into
sections.

5. Advantages of (a) A functional structure lays emphasiS on specific

functions
functional structure and ensures that different functions get due attention

(b) Due to the similarity in the tasks being

promotes control and co-ordination within a department
performed,
i

70 MCOs in Business Studies-XII

S.No.
Concept Description
(c) It results in increased profit with the
improvement in
managerial and operational efficiency

(d) By focusing only on a limited range of skills, it facilitates

the training of employees

Disadvantages of (a) It gives less ennphasis on overall enterprise objectives than

functional structure the objectives pursued by a functional head

It may lead to problems in co-ordination.

(b)
It may lead to conflict of
interests if twoor more departments
(c)
are not compatible.

as the functional heads do not

(d) It may lead to inflexibility
in diverse areas.
get training and experience
is an organisational design that
(a) A divisional structure
Features of on the basis of
or related jobs together
divisional structure groups similar manufactured in the
functions of different products
business
Structure comprises of separate
organisation.
units or divisions.

divisional manager responsible for

b) Each department has a
division.
the profit or loss of his
multifunctional because within each
(c) Each division is finance,
division, functions like production, marketing
together to achieve a
c ommon

purchase etc., are performed

goal
divisional
manager to gain
Advantages of (a) Product specialisation helps a
8. related to a particular product
divisional structure experience in all functions
and this prepares him for higher positions.
measurement
(b) It provides a proper basis for performance
in cases of poor
and also helps in fixation of responsibility
r e v e n u e s and costs
related
performance of the division, as
to different departments can
be easily identified.

flexibility
(c) It leads to faster decision making, promotes
division functions as an
and initiative because each
autonomous unit.

It facilitates expansion and growth

as new divisions | can
(d) divisional head and staff
be added just by adding another
the existing
for the new product line without interrupting
operations.

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.

(b) The role and duties of each

employee are clearly defined.
(c) A unity of command is maintained through an established
chain of command.

(d) It leads to effective

a framework accomplishment of goals by providing
for the efficient
operations
(e) It
provides stability to the
of the organisation as the behaviour
employees is guided by rules and
organisation. regulations of the
13. Limitations of formal (a) It may lead
organisation procedural delays as all
to
to take place through scalar chain only.communication has
(b) It restricts the
creativity and
it does not allow recognition of employees as
any deviations from
policies. rigidly laid down
(c) It does not
provide a
complete picture of how
organisation works as it is ditticult to an
human relationships in a formal structure. understand all

72 MCQs in Business Studies-XII

 Concept
S.No. Description
Advantages (a) It leads to faster
14 spread of information well
of informal quick feedback as
as
farilitates
organisation

(b) It helps to fulfill the social needs of

the
them a sense of
helongingness thememhers
enhances their job satisfaction
in
by giving
organisation and
(c) It contributes towards the fulfillment of
objectives by compensating for inadequaciesorganisational
in the formal
organisation.
Limitations (a) It may work against the interest of the formal
15. as it leads to spreading of rumours organisation
of informal

organisation
(b) Sometimes it may restrict growth of the
organisation by
strongly opposing to the proposed change.

(c) As it creates a peer pressure among the members to conform

to group expectations, it can be harmful to the
organisation.
Elements of
16.
delegation
Authority Responsibility Accountability
17. Importance of (a) It leads to effective management, as
by relieving the
employees from doing routine work it provides them with
delegation
time to excel in new areas.

(6) It promotes employee development, as they are entrusted

with more opportunities to utilise their talent, perform
complex tasks and assume those responsibilities which are
likely to improve their career prospects.

(c) It helps to motivate employees, as whena subordinate is

entrusted with a task, it is not merely the sharing of work,
but it involves trust on the superior's part and commitment
on the part of the subordinate.

(d) It facilitates the growth of an organisation, as it seeks to

enrich the quality of manpower and widens the scope of
using internal recruitment by providing them with training
and experience through exposure to varied jobs.

(e) It provides the basis of management hierarchy, as it

establishes superior-subordinate relationships, which are
the basis of hierarchy of management.

(f) It facilitates better co-ordination amongst the departments,

levels and functions of management by providing clarity in
reporting relationships.

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.

Difference between Functional and Divisional

Structure
S.No. Basis Functional Structure Divisional Structure
1. Formation It is based on functions. It is based
is
on
product lines and
supported by functions.
2. Responsibility It is difficult to fix on a It is easy to fix
department. performance.
responsibility for
3. Specialisation Functional specialisation Product specialisation
4.
Managerial It is difficult, as each functional | It is easier, autonomy as well as
Development manager has to report to the top the chance to perform
multiple
management. functions helps in
development. managerial
5. Cost It is economical, as the Itis costly, as thereis
functions are not duplicated. duplication of resources in
various departments.

74 MCQs in Business Studies-XII

 Basis Functional Structure Divislonal Structure
S.No.
Co-ordination
It is difficult for a multiproduct Itis easy, berause all functions
related to a
particular produt
company
are integrated in one

the It is suitable for those

It is most suitable when
Suitability size of the organisation is business enterprises where a
diversified activities large variety of products are
large, has manufactured using different
and operations require
a high
productive resources.
degree of specialisation.

Formal and Informal Organisation

Difference between
Formal Organisation Informal Organisation
Basis
S.No. The structure of authority It is a network of social
Meaning relationships arising out of the
1. relationships is created,
interaction among employees
deliberated by the management
within an organisation.
to achieve its objectives.
It arises as a result of social
It arises as a result of company
2. Origin interaction.
rules and policies.
It arises out of personal
Authority It arises by the virtue of
position in the organisation. qualities of the members.
There is no set behaviour
Behaviour It is directed by rules of the
members.
organisation. pattern for the
The communication takes place The communication can take
5. Flow of its
Communication through the scalar chain. place in any direction, as
flow does not follow a set
pattern.

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.

Difference between Authority, Responsibility and Accountability

S.No. Basis Authority Responsibility Accountability

Meaning Authority refers to the Responsibility is Accountability implies

right of an individual the obligation of being answerable for
to command his a subordinate to the final outcome.
subordinates and to properly perform Once authority has
take action within the the assigned duty. been delegated
scope of his position. and responsibility
accepted, one cannot
deny accountability.

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
<<ooy<eeo>Yx<eo)x<<oooyeecoo>> xxcoo> >xcooo>xxccos xee
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

76 MCOs in Business Studies-XII

2.Organising is a process by which the manager

a)Establishes order out of chaos

Removes flict among people
b) Removes confli over work or
responsibility shari
an environment suitable for teamwork
c) Creates
(c) C r e a t

above
All of the
(d)
e i s defined as the framework within which managerial and operating tasks are
performecd

of management (b) Organisational structure

(a) Span (d) None of the above
(c) Informal organisation
f e r s to the number of subordinates that can be effectively managed by a superior.
(a) Organisational structure (b) Informal organisation
ot management
(d) None of the above
(c) Span increases in an organisation, the number of levels of
As the span of management
in the organisation
management
(a) Increases
(b) Decreases
(c) Remains unaffected (d) None of the above
6.Uranus Limited is a dealing in metal products. The work is mainly divided
company
and personnel.
into functions including
production, purchase, marketing, accounts
structure followed by the organisation.
Identify the type of organisational (b) Relational structure
(a) Functional structure

(c) Divisional structure (d) None of the above

structure which facilitates occupational specialisation.
7. ldentify the type of organisational (b) Horizontal structure
(a) Functional structure
(d) Divisional structure
(c) Network structure

organisational structure which makes training of employees

8.Identify the type of limited range of skills.
easier, as the focus is only on a
(a) Network structure
(b) Divisional structure
(d) Matrix structure
(c) Functional structure
structure is most suitable when the size of the organisation
9, This type of organisational
is large, has diversified activities and operations require a high degree of specialisation.
(b) Functional structure
(a) Divisional structure
(d) Matrix structure
(c) Network structure
is grouped on the basis of
10. Under this
type of organisational structure, manpower
different products manufactured.
(b) Functional structure
(a) Divisional structure
(d) Matrix structure
(c) Network structure
1, Which of the following is not a feature of functional structure?
(a) It promotes functional specialisation.
(D) Managerial development is difficult.
C)It is easy to fix responsiblity for performance.
(d) It is an economical structure to maintain.

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

78 MCQs in Business Studies-XII

 ich of the following is not a demerit of functional structure?
18. Which

18. places m o r e emphasis on the objectives pursued by

(a) It
a functional head than on
Overall enterprise objectives.
lead to
lead to conflic
conflict of interests among departments due to varied interests.
It may
(b) specialisation.
c)It leads to occupational
alead to difficulty in co-Ordination among functionally differentiated
lead to
may
(d) It
departments.

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?

a) It originates from within the formal organisation.

(b) The standards of behaviour evolve from group norms.
(c) Scalar chain of command is not followed.
(d) It is deliberately created by the management.
24. Which of the
following is not a merit of informal organisation
(a) It leads to faster spread of information and speedy feedback.

() It helps to fulfill the social needs of the members.

C) It does not fulfill inadequacies in the formal organisation.
d) All of the above

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

80 MCOs in Business Studies-XII

 the followin cannot be
Which of delegated?
36.
and accountability
Responsibility
(a) (b) Authority and responsibility
Accountability and responsibility
ic) (d) All of the above
arises from
uthority
37.
(a) Responsibility (b) Formal position
(c) A c c o u n t a b i l i t y
(d) All of the above
is derived from
38.
Responsibility
(a) Authority (b) Formal position
(c) Accountability (d) All of the above
derived from
Accountability is
39.
(a) Authority (b) Formal position
(c)Responsibility
(d) All of the above
decision-making
authority is retained by higher management levels, an
40. When be
is said to
organisation
(a) Decentralised (b) Centralised

(c) Fragmented
(d) None of the above

ANSWERS

2. (d) 3. (b) 4. (c)

1.
5. (b)because more subordinates can be effectively managed by a superior
are being grouped on the basis of functions
6. (a) as the people
on specific functions
7. (a) it emphasises
8. (c) as each employee is expected to gain proficiency with regard to one function only
9. (b) it relates to single product companies
10. (a) the divisions are created on the basis of products
11. (c) it is difficult to fix responsibility for performance
12. (c) 13. (b)
14. (a) as people are grouped on the basis of functions
15. (b) 16. (b) 17. (b) 18. (c) it is a merit 19. (C)
20. (b) it relates to informal organisation
21. (d) it relates to informal organisation
2. (b) it relates to informal organisation
23. (d) it relates to formal organisation
24. (c) it does fulfill the inadequacies of formal organisation
25. (b) it relates to formal organisation
26. (d) 27. (b)
D) a superior has authority over subordinate
29. (a) 30. (a)

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)

VERY SHORT ANSWER QUESTIONS

1. When Arun started a factory two years back with 50 workers, he had placed
workers under direct control of each supervisor. ldentify the concept related
0
to
organising being described in the above case.
2. After completing a course in film production, Rishabh shared his vision to start
an
advertising agency with his father. His father then advised him to first lay down the
e
framework of his company in terms of various job positions that he intends to create

Identity the concept of organising being described in the above lines.

3. Reena, Meena and Tina work as teachers in a government
school. Although
teach different subjects, they have developed close affinity towards each other and
they
are often seen sharing their personal problems amongst themselves. ldentify the
type of organisation being described in the above lines
4. Vedant and Arahan are working as Departmental Heads in Shooting Star Limited
Vedant is heading the Public Relation department whereas Arahan leads the Human
Resource department. ldentify the type of organisational structure being followed
by the company.
5. Rihan and Rohan are working as Departmental Heads in Best Living Limited. Rihan
has been entrusted with the responsibility of cosmetics division, whereas Rohan is
heading the food division. Ident1fy the tvpe of organisational structure adopted by
the company.
6. Over past five years, Vivaan has been working as a Departmental Head in a
multinational company. But now he is very keen on changing his company. This is
because he wants to gain experience in all functions related to a particular
product
rather than restricting himselt to expertise in one particular tunction. Identify the
type of organisational structure being followed by his present company
7. This type of organisational structure tacilitates expansion and growth, as new
divisions can be added without interrupting the exIsting operations by
merely
adding another divisional head and staff for the new product line. Identify it.
8. What type of organisational structure is suitable tor those business
enterprises where
alarge variety of products are manutactured using ditferent
productive
resources?
9. Healthy Living Limited is a company dealing in
organic products. Keeping in view
the growing demand for such products, the company has decided to open 3 more
outlets in the same city in order to expand its business. Identify the type of
organisational structure which is suitable for the company after expansion.

MCOS in Business Studies-NII

 refers
ka
to the downward transter of
10.It
Identity the concept. authority from a
superior to a
subordinate.
Under
this type of organisational
structure, each division is
11.
der
exDertise in all functions related to a
product self-contained
line. Name as it
works as tthe Vice Principal in a public school. In it.
lata works
Hemlata
12. Mrs.
of the institution, she conducts order to ensure
ooth running department wise meeting on the
Wednesday in her office.
Identify the type of
organisation being described inevery
above case.

and Rajveer Singh work as Business

oar

15. Development Managers in a

softener company. Last week, when they were travelling
water
together for
business assignment, Rajveer Singh shared with Kunal Kapoor a trade secret abouta
nany. Identify
the company. Ide the types of organisation being described in the above lines.
14. Gauri ShankaChankar has starteda Soft Skill Training Company in Delhi. He often comes
across different types ofrumours with regard to shutting down of the company due
across differ
to poor clientele. Identify the type of organisation being described in the above lines.
E Itdetermines the number of levels of management in the structure. Identify the

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

84 MCOs in Business Studies-XII