CBSE Class 12 Business Studies Organising Worksheet Set B

Question. Assertion (A) Organising provides a base for measuring performance and helps in fixing responsibility in case of poor performance.
Reason (R) In divisional structure, each department is accountable for its own profit or loss.
Alternatives
(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
Answer: A

Question. Delegation of authority in a way gives enough room and space to the subordinates to flourish their abilities and skill. How?
(a) Subordinates get a feeling of importance
(b) Subordinates get motivated to work
(c) Breaks the monotony of the subordinates
(d) All of the above
Answer: D

Question. What is dividing the whole concern into independent units and departments called?
(a) Decentralisation
(b) Departmentation
(c) Division
(d) Functionalisation
Answer: B

Question. Amanager alone cannot perform all the tasks assigned to him. In order to meet the targets, the manager should ........... authority.
(a) leave
(b) delegate
(c) decentralise
(d) rise
Answer: B

Question. Assertion (A) People working in the same department can work in good coordination.
Reason (R) Organising promotes effective control and coordination within a department due to similarity of task performed.
Alternatives
(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
Answer: A

Question. Identify the correct sequence of steps in the organising process.
(i) Departmentalisation
(ii) Identification and division of work
(iii) Establishing reporting relationship
(iv) Assignment of duties
(a) (i), (ii), (iii), (iv)
(b) (ii), (iii), (iv), (i)
(c) (iii), (i), (ii), (iv)
(d) (ii), (i), (iv), (iii)
Answer: D

Question. Which of the following is an ideal situation?
(a) Authority < Responsibility
(b) Authority > Responsibility
(c) Authority = Responsibility
(d) None of the above
Answer: C

Question. To make the annual function of the school successful, the principal of the school divided all the activities into task groups each dealing with a specific area like rehearsals, decoration, stage management, refreshments, etc. Each group was placed under the overall supervision of a senior teacher. Which step of organising is being discussed here?
(a) Division of work
(b) Departmentalisation
(c) Assignment of duties
(d) Reporting relationships
Answer: C

Question. What is the optimum ratio for an organisation to work effectively and efficiently?
(a) Complete centralisation
(b) Mix of centralisation and decentralisation
(c) Complete decentralisation
(d) Both independent in the same organisation
Answer: B

Question. For the two statements given below, choose the correct option
Statement I Grouping of activities on the basis of functions is a part of divisional organisation.
Statement II In functional structure, the organisational structure comprises separate divisions.
Alternatives
(a) Statement I is correct and Statement II is incorrect.
(b) Statement II is correct and Statement I is incorrect.
(c) Both statements are correct.
(d) Both statements are incorrect.
Answer: D

Very Short Answer

Question. What is meant by 'Functional Organisation Structure? 
Answer: It refers to the division of whole enterprise according to the major activities to be performed it.

Question. Give two advantages of functional organisation. 
Answer: (a) Benefits of specialisation
(b) Coordination is established.

Question. What is meant by Divisional Organisation Structure? 
Answer: It refers to the division of the whole enterprise according to the major products to be manufactured by it.

Question. What is delegation of authority? 
Answer: It refers to the process of entrusting responsibility and authority, and creating accountability the person to whom work or responsibility has been handed over.

Question. What is meant by Responsibility for?
Answer: 'Responsibility for' means obligation of a subordinate to complete the assigned job.

KEY CONCEPTS QUESTIONS WITH ANSWERS

Question. Which is the first step in the process of organizing? 
Answer: Identification and division of work

Question. Enumerate the steps in the process of organizing?
Answer:
1) Identification and division of work
2) Grouping Jobs and Departmentation.
3) Assignment of duties
4) Establishing authority relationship

Question. Organizing helps in optimum utilization of resources. Which type of resources does it refer?
Answer: All material, financial and human resources.

Question. Give any one importance of organizing?
Answer: Development of personnel.

Question. Divisional structure is more suitable for the firms having several products and each product has distinct features. Do you agree? 
Answer: Yes, I do agree. 

Question. Distinguish between functional structure and divisional structure.
Answer: 

Question. What are the advantages and disadvantages of divisional structure?
Answer: Advantages:
1) All activities associated with one product. Can be easily integrated.
2) Decision making is faster.
3) Performance can be easily assessed
Disadvantages:
1) This gives rise to duplication of effort among its divisions.
2) Manages in each department focus on their own product with out thinking the rest of the organization.
3) There may not be full utilization of different equipments

Question. Name the type of organization in which :
a. Friendly relationship exists among the members.
b. Official relationship exists among the members.
Answer: a) Informal Organisation b) Formal Organisation.

Question. Distinguish between formal and informal organizations on the basis of 
a. Formation, b. purpose c structure d. behavior of members.
e. stability and f. adherence to rules.
Answer: 

Question. “Authority can be delegated but not responsibility”. Is this statement correct or wrong?
Answer: Correct. 

Question. “Authority flows upwards but responsibility flows downwards‟. Is this statement correct?
Answer: False

Question. Distinguish between authority and responsibility on the basis of : 
a. Direction of flow b. Delegation c. Origin
Answer: 

Question. “A manager is of the view that he is not responsible for the quality of work that he has delegated to his subordinate”. Do you agree with his view points? Justify your answer by giving arguments. 
Answer: No I do not agree with managers view point.
The reasons are as follows:
i) Principle of delegation by results expected.
ii) Principle of parity of authority and responsibility
iii) Principle of absolute responsibility.
iv) Authority level principle

Question. Scope of decentralization of authority is wider than delegation. Why? 
Answer: Decentralization implies extension of delegation to the lowest level of management.

Question. Distinguish between „delegation‟ and „decentralisation‟ of authority on the basis of
i) purpose
ii) parties involved and
iii) withdrawal of authority.
Answer: 

QUESTIONS WITH DIFFERENT DIFFICULTY LEVELS

Question. Name of the function of management which co-ordinates the physical, financial and human resources and establishes productive relations among them for achievement of specific goals. 
Answer: Organising

Question. Name and explain the two steps in the process o organizing which come after „Identification and division of work‟ and „Departmentalization‟. 
Answer: Identification and division of work: Dividing the total work into jobs is necessary because the entire work cannot be done by individual (ii) Departmentalisation: In this step combine or group similar jobs into larger units called departments.

Question. Organising leads to a systematic allocation of jobs amongst the workforce. Which importance of organizing is stated here? 
Answer: Benefits of specialisation .

Question. Organising clarifies lines of communication and specifies who is to report to whom.
Mention the importance of organizing indicated here.
Answer: Clarity in working relationships.

Question. Aman Ltd. Is manufacturing toys and has production, sales, Purchase and Finance Departments. Which type of organization structure would you suggest to them? State any three advantages of this organization structure. 
Answer: I would suggest functional structure for Aman Limited.
Advantages of this structure:
i. Supervision is facilitated.
ii. Coordination with in the department is easier.

Question. Hindustan Ltd. Is manufacturing computers, soaps and textiles. Which type of organizational structure would suit the requirements of such organization? State any three advantages of this organization structure.
Answer: Divisional structure would shoot the requirements of Hindustan limited.
Advantages:
i. All activates associated with one product can be easily integrated.
ii. Decision making is faster and effective.
iii. Performance of individual product can be easily assessed.

Question. It is a network of personal and social relations not established or required by the formal organization but arising spontaneously as people associate with one another. Name this organization and give its three advantages. 
Answer: Informal organization:
Advantages:
1. It brings feeling of belonging ness.
2. Informal organization satisfies social and cultural needs.
3. It provides useful channel of communication.

Question. It merely means the granting of authority to subordinates to operate within prescribe limits. Mention the concept referred here. 
Answer: Delegation of Authority

Question. Delegation provides a ready workforce to take up leading positions in new ventures.
Which importance of delegation is stated here?
Answer: Facilitation of growth 

Question. “Authority can be delegated but accountability cannot.” Explain the statement. 
Answer: According to the principle of absolute responsibility, authority can be delegated but responsibility cannot be delegated by a manager. The manager remains responsible to his own superior for the task which he may assign to his subordinates. Every superior is responsible for the acts of this subordinates to whom he delegates authority for any work.

Question. The Marketing Manager of an organization has been asked to achieve a target sales of 100 generators per day. He delegates the task to 10 sales managers working under him.
Two of them could not achieve their respective targets. Is the marking manager responsible? Briefly explain the relevant principle in support of your answer. 
Answer: Yes, Marketing manager is responsible for the non-achievement of the target sales to this superior.
The principle related to this statement is absolute responsibility. It states that authority can be delegated but responsibility cannot be delegated by manager. The manager remains responsible are accountable to this own superior for the task which he may have assigned to his subordinate.

Question. It refers to the systematic delegation of authority from top management to the lower level managers. Mention it.
Answer: Decentralization of authority.

Question. If we delegate the authority we multiply it by two, If we decentralize it, we multiply it by money.
Answer: Scope of delegation of authority is limited. It is clear that if we delegate the authority we Multiply it by 2 that is delegator and his subordinate to whom authority is delegated.
Scope of decentralization of authority is wider than delegation. It involves many people from to level to bottom lower level of authority.