ORGANISING
1 A) State any three points of significance of decentralization. 3
OR
B) State any three limitations of formal organisation.
2 Malini and Shalini recently completed their web designing course from a reputed University in 6
Mumbai. Malini opened her own website development company ’ Rapid Software Private
Limited’ .In order to ensure a smooth flow of communication and better control over the
operations of her business, she divided the entire work of a company into four departments i.e
web designing, accounting, research and development and customer service. All departments are
required to report to a coordinating head. The company became successful in the market as all
operations were carried out with a high degree of specialisation.
Shalini joined a big group named [Link],Inc. which offered a variety of services like Babylon
Web Services, Babylon Prime, Babylon Retail. She was appointed as the head of Babylon Web
Services division and was made responsible for the profit or loss of her service [Link] was
happy to take the responsibility as the division would function as an autonomous unit, thus
enabling her to make faster decisions.
(a). Identify the types of the framework within which managerial and operating tasks are
performed, in the organisations, of which, Malini and Shalini were a part of.
(b). Give any four differences between the frameworks identified above.
3 Read the following statements : Assertion (A) and Reason (R). 1
Assertion (A) : Informal organisation has a definite structure or form.
Reason (R) : Informal organisation is a complex network of social relationships among members.
Choose the correct alternative from the options given below :
(A) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of
Assertion (A).
(B) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of
Assertion (A).
(C) Assertion (A) is true, but Reason (R) is false. (D) Assertion (A) is false, but Reason (R) is true.
4 Organising involves a series of steps that need to be taken in order to achieve the desired goal. 1
Identify the correct sequence of steps of organising function of management from the following :
(A) Departmentalisation, Identification and Division of work, Assignment of duties, Establishing
reporting relationships.
(B) Departmentalisation, Assignment of duties, Identification and Division of work, Establishing
reporting relationships.
(C) Identification and Division of work, Departmentalisation, Assignment of duties, Establishing
reporting relationships.
(D) Identification and Division of work, Departmentalisation, Establishing reporting relationships,
Assignment of duties.
5 From the following, identify the incorrect statement with respect to ‘Delegation’ : 1
(A) Delegation is a compulsory act because no individual can perform all tasks on his own.
(B) It has a narrow scope as it is limited to the superior and his immediate subordinate.
(C) It is a process followed to share tasks.
(D) It increases the role of the subordinates in the organisation by giving them more autonomy.
6 ‘Chaman Pharmaceuticals Ltd.’ is a company providing medicines all over the country. After 3
establishing itself and making a name in the field of medicines, it decided to enter into the field of
medical devices, baby care products and nutritional supplements. Each product category had a
different head accountable for profits, revenues and costs. In case of poor performance of their
product, the heads were held responsible. But as the heads of different product categories were
different, conflict could arise among different heads with reference to allocation of funds. Also
providing a separate set of similar functional heads for each product category increased
expenditure.
(i) Identify and explain the type of organisation structure ‘Chaman Pharmaceuticals Ltd.’ had
followed after entering into the field of medical devices, baby care products and nutritional
supplements.
(ii) Also state any one advantage and any one disadvantage of the organizational structure
discussed in the above para by quoting lines.
7 Explain any four points of importance of Organising function of management. 6
8 1
9 1
10 6
11 ‘Effective delegation of authority leads to many benefits.’ Explain the above statement with the 6
help of any four points.
12 ‘Health Relax Ltd.’ is one of India’s leading consumer healthcare brands in diagnostic services. It 6
has an integrated nationwide network of diagnostic centers. The company was exploring new
avenues for its expansion. The top level managers analysed the business environment and found
that since the year 2023 was the International Year of Millets, it was expected that the global
demand for
millets will grow by around 5% annually. India being one of the leading producer and exporter of
millets, it was realised that there was a great business opportunity in the millet industry. The
Board of Directors approved the idea of venturing into the business of selling bread, noodles and
dosa mix made of millets. The company had to restructure itself. It diversified into varied product
categories and created a structure comprising of separate business units. Each unit had a manager
responsible for performance who had authority over the unit. Manpower was grouped on the
basis of different products manufactured.
(i) Identify the type of organizational structure of Health Relax Ltd. after restructuring and give its
meaning.
(ii) Explain any two advantages and two disadvantages of the type of organisational structure
identified in the above case
13 Statement I : Delegation is the entrustment of responsibility and authority to another, and the
creation of accountability for performance.
Statement II : Irrespective of the extent of delegated authority, themanager shall still be
accountable to the same extent as before delegation.
Choose the correct option from the following :
(A) Statement I is true and Statement II is false. (B) Statement II is true and Statement I is false.
(C) Both the Statements are true. (D) Both the Statements are false.
14 Online retailer ‘Bizen’ has grown to be the biggest provider worldwide in the field of e-commerce. 1
Its revenues are growing steadily year after year. It owes its success to the rapid rate of
digitisation and its organizational structure. ‘Bizen’s Managing Director, Mohit makes strategic
decisions and has control over the entire organisation. In ‘Bizen’, jobs of similar nature are
grouped together into Human Resource Department, Marketing Department, Purchase
Department and Research and Development Department. These departments are further divided
into sections and all departmental heads report to Mohit who is the co-ordinating head. This
ensures efficiency in the utilization of manpower and minimizes duplication of efforts. The type of
organizational structure
of ‘Bizen’ is :
(A) Informal organisational structure (B) Divisional organisational structure
(C) Functional organisational structure (D) Both (B) and (C)
15 Differentiate between ‘Delegation’ and ‘Decentralisation’ on any four bases. 4