CBSE Class 12 Business Studies Organising And Staffing Worksheet Set C

MCQs for NCERT Class 12 Business Studies Organising

Question. The accountability flows
(a) In all directions
(b) Downwards
(c) Upwards
(d) None of the above

Answer : C

Question. Organising is a process by which the manager
(a) Establishes order out of chaos
(b) Removes conflict among people over work or responsibility sharing
(c) Creates an environment suitable for teamwork
(d) All of the above

Answer : D

Question. Which of the following is not a merit of formal organisation?
(a) It is easier to fix responsibility for mistakes.
(b) Scalar chain of command is followed.
(c) It leads to effective achievement of organisational goals.
(d) It leads to faster spread of information and rapid feedback

Answer : D

Question. As the span of management increases in an organisation, the number of levels of management in the organisation
(a) Increases
(b) Decreases
(c) Remains unaffected
(d) None of the above

Answer : B

Question. Identify the type of organisational structure which makes training of employees easier, as the focus is only on a limited range of skills.
(a) Network structure
(b) Divisional structure
(c) Functional structure
(d) Matrix structure

Answer : C

Question. It is the obligation of a subordinate to properly perform the assigned duty.
(a) Responsibility
(b) Authority
(c) Accountability
(d) All of the above

Answer : A

Question. Which of the following is not a feature of formal organisation?
(a) It specifies the relationships among various job positions.
(b) The standards of behaviour of employees are evolved from group norms.
(c) It is deliberately designed by the top management.
(d) It places less emphasis on interpersonal relationships among the employees.

Answer : B

Question. When decision-making authority is retained organisation is said to be by higher management levels, as
(a) Decentralised
(b) Centralised
(c) Fragmented
(d) None of the above

Answer : B

Question. Which of the following can be delegated?
(a) Responsibility
(b) Authority
(c) Accountability
(d) All of the above

Answer : B

Question. If a company deals in metal products and plastic products, what type of organisation will be useful for it?
(a) Informal
(b) Functional
(c) Both the above
(d) Divisional

Answer : D

Question. Authority refers to the right of an individual to command his subordinates and take action 
1. Within the scope of his position
2. Out of the scope of his position
3. Commensurate with his manager
4. To any extent

Answer : A

Question. Which organisation structure is compulsory?
(a) Formal
(b) Informal
(c) Both (a) and (b)
(d) None

Answer : A

Question. Departments are established on the basis of ________ in functional organisation.
(a) Activities
(b) Products
(c) Demand
(d) Market

Answer : A

Question. Centralisation refers to 
(a) Retention of decision making authority
(b) Opening new branches
(c) Separation of divisions or levels
(d) Dispersal of decision making authority

Answer : A

Question. How is accountability created?
(a) By assigning responsibility
(b) By assigning authority
(c) Both (a) and (b)
(d) None of these

Answer : B

Question. What is decentralisation?
(a) Short form of delegation
(b) Extended form of delegation
(c) Middle form of delegation
(d) None of these

Answer : B

Question. Which of the following has a wider scope?
(a) Management
(b) Centralisation
(c) Decentralisation
(d) Delegation

Answer : A

Fill in the blanks

1. Organising as a function of management establishes working relationship.

2. Organising tries to incorporate the changes in the business environment.

3. Organising helps in the growth and diversification of an enterprises.

4. Organising clarify working relationship

5. identification and division of work is the first step in the organizing process..

6. Authority gives managers the right to take decision.

7. Delegation of authority merely means the granting of authority to subordinate.

8. centralization is the process of decision making where all the authority is retained with top level management.

9. Decetralization gives relief- to top management.

10. Delegation of authority means sharing responsibility with subordinates.

11. decentralization is the process of decision making where authority to decide is delegated or shared among all levels of management.

12. decentralization pushes the decision making authority.

13. accountability is the answerability for the outcome of the assigned task.

14 accountability cannot be delegated.(accountability)

30. The DELEGATION of authority flows downward from the superior to subordinate.

MCQs for NCERT Class 12 Business Studies Staffing

Question. Recruitment, selection, and training are the components of :
(a)organizing
(b) planning
(c)staffing
(d)controlling 

Answer :  C

Question. A clerk is promoted to accountant post. Which method is used here?
(a)transfer
(b)promotion
(c)casual callers
(d)none 

Answer :  B

Question. ________ is included in the psychological test.
(a) Interest Test
(b) Intelligence Test
(c) Both the Above
(d) General Knowledge Test

Answer : C

Question. Our assets walk out of the door each evening. We have to make sure that they come back the next morning. Here the assets refer to ________ .
(a) Vehicles
(b) Goods
(c) Employees
(d) Machines

Answer :  C

Question. Staffing is the ________ stage of management process.
(a) First
(b) Second
(c) Third
(d) Fourth

Answer :  C

Question. While selecting manpower, ________ is kept in mind.
(a) Education
(b) Experience
(c) Honesty
(d) All the above

Answer : D

Question. At what level of management staffing is needed?
(a) Top level
(b) Middle level
(c) Lower level
(d) At all levels

Answer : D

Question. Name the function of management which helps in the formulation of future plans, in the light of the problems that were identified and thus, helps in better planning in the future period.
(a) Planning
(b) Organising
(c) Directing
(d) Controlling
Answer : D

Question. It leads to effective management as by relieving the employees from doing routine work, it provides them with time to excel in new areas. Identify the concept:
(a) Decentralisation
(b) Delegation
(c) Authority
(d) None of these
Answer : B

Question. When decision making authority is being retained by higher management levels, an organization is said to be:
(a) Delegation
(b) Decenteralization
(c) Fragmented
(d) None of these
Answer : A

Question. Harsh is running a company where he sells variety of goods such as textiles, garments, cosmetics etc.He follows an organization structure. Identify the organizational structure here.
(a) Divisional structure
(b) Functional structure
(c) Both (a) and (b)
(d) None of the above
Answer : A

Question. There is concentration of decision-making authority at higher or top levels of management. It refers to a situation where all decisions on all matters are taken by one or a few managers at relatively higher levels.
Identify the concept of organizing.
(a) Delegation
(b) Centralization
(c) Authority
(d) Responsibility
Answer : B

Question. Divine Ltd. is a leading soap manufacturing company.They want to diversify into textiles. Identify the type of structure that should be followed by Divine Ltd.
(a) Divisional structure
(b) Functional structure
(c) Both (a) and (b)
(d) None of these
Answer : B

Question. Supermart is an organisation in which only the managers are the leaders. Identify the type of organisation.
(a) Formal
(b) Informal
(c) Both (a) and (b)
(d) None of these
Answer : A

Question. Amol works as a manager who supervises all the situations and functionalities related to a particular department. Here the authority is more than the other type of organisation structure. Identify the type of structure.
(a) Divisional structure
(b) Functional structure
(c) Both (a) and (b)
(d) None of these
Answer : B

Question. When decision making authority is retained by higher management levels, an organization is said to be:
(a) Decentralized
(b) Centralized
(c) Delegation of Authority
(d) None of these
Answer : B

Question. Amber was the first content manager in his company.He gains experience of all the related functions like HR, Marketing, Finance, etc. Identify the type of organisation.
(a) Divisional structure
(b) Functional structure
(c) Both (a) and (b)
(d) None of these
Answer : A

Question. Chaman runs a company in Gurgaon. The company is known for its product specialisation and has a lot of reputation in the market. Identify the type of organization structure :
(a) Divisional structure
(b) Functional structure
(c) Both (a) and (b)
(d) None of these
Answer : A

Question. An obligation of a subordinate to complete an assigned task given by his superior. Identify the element of delegation.
(a) Authority
(b) Accountability
(c) Responsibility
(d) None of these
Answer : C

Question. Answerability of the subordinate about the final result of the assigned task. Identify the element of delegation.
(a) Authority
(b) Accountability
(c) Responsibility
(d) None of these
Answer : B

Question. Rohan runs a garments manufacturing company.He wants to diversify into cosmetics, and footwear.
Identify the organizational structure here.
(a) Divisional structure
(b) Functional structure
(c) Both (a) and (b)
(d) None of these
Answer : A

Question. Aman runs a clothing company. There is lot of chaos in the organization. He decided to do grouping of similar activities into departments, units, sections etc. using several criteria as a basis to facilitate specialization. Identify the step of organizing process referred here.
(a) Identification and division of work
(b) Departmentalization
(c) Assignment of duties
(d) Establishing reporting relationship
Answer : B

Question. Which of the following is not a part of organising process?
(a) Assigning of duties
(b) Departmentalisation
(c) Decentralisation
(d) Establishing authority-responsibility relationship
Answer : C

Question. Due to proper organizing and division of work, Lenux Ltd. goes for systematic assignment of jobs among the employees, which importance of organizing is highlighted here?
(a) Benefits of specialization
(b) Clarity in working relationship
(c) Adaptation to change
(d) Effective administration
Answer : A

Question. Karan is running a laptop manufacturing company.He focuses on product specialisation. Identify the organizational structure here.
(a) Divisional structure
(b) Functional structure
(c) Both (a) and (b)
(d) None of the above
Answer : B

Question. Rohit works in a hotel as a senior chef. He enhances the status of subordinates and motivated them to improve their performance. Identify the concept of organising.
(a) Delegation
(b) Decentralisation
(c) Formal communication
(d) Authority
Answer : A

Question. Organising helps in optimum utilisation of resources.
Which type of resources does it refer?
(a) Centralisation
(b) Delegation
(c) Development of Personnel
(d) None of these
Answer : C

Question. Rohit was the first content manager in his company.
He gains experience of all the related functions like HR, Marketing, Finance, etc. Identify the type of organization structure.
(a) Divisional structure
(b) Functional structure
(c) Both (a) and (b)
(d) None of these
Answer : A

Question. Amol works as a manager who supervises all the situations and functionalities related to a particular department. Here the authority is more than the other type of organization structure. Identify the type of structure.
(a) Divisional structure
(b) Functional structure
(c) Both (a) and (b)
(d) None of these
Answer : A

Question. Edu power is a leading EdTech company. It is deliberately created by top management. Identify the type of organization.
(a) Formal organisation
(b) Informal organisation
(c) Both (a) and (b)
(d) None of these
Answer : A

Question. Sushant runs a software company. Now he wants to open a retail company. The size of organisation is large and there is a need for higher degree of specialization.
Identify the organizational structure here.
(a) Divisional structure
(b) Functional structure
(c) Both (a) and (b)
(d) None of these
Answer : B

Question. Bablu works in a Xerox Ltd. This organization does not follow the scalar chain. Identify the type of organization.
(a) Formal organization
(b) Informal organization
(c) Both (a) and (b)
(d) None of these
Answer : B

Question. Vrinda Ltd., grows, so it needs to add more employees, create new departments, and introduce new levels of management. Identify the type of organizational structure:
(a) Divisional
(b) Functional
(c) Both (a) and (b)
(d) None of these
Answer : A

Question. It leads to effective management as by relieving the employees from doing routine work, it provides them with time to excel in new areas. Identify the concept.
(a) Decentralization
(b) Delegation
(c) Authority
(d) None of these
Answer : B

Question. Corex Ltd. is pursuing diversified activities which require a high degree of specialization. Identify the type of structure that should be followed by Corex Ltd.
(a) Divisional structure
(b) Functional structure
(c) Both (a) and (b)
(d) None of these
Answer : B

Question. “The entire work is divided in such a manner that each activity is properly managed.” Identify the statement and choose the correct Answer :
(a) Assignment of duties
(b) Establishing reporting relationships
(c) Departmentalization
(d) Identification and division of work
Answer : D

Question. Due to organizational structure, it becomes easy to expand operations, new divisions, departments, and products. Identify the importance of organisation function from the following given points.
(a) Effective administration
(b) Development of personal
(c) Expansion and growth
(d) None of these
Answer : C

Question. An organisational structure is not subject to change even if people are leaving or transferred. Identify the statement and choose the correct Answer :
(a) Development of personnel
(b) Adaption to change
(c) Clarity in working relationships
(d) Benefits of specialization
Answer : B

Question. Which term denotes “The number of subordinates that can be effectively managed by a superior”?
(a) Span of control
(b) Informal organisation
(c) Responsibility
(d) None of these
Answer : A

Question. Uranus Limited is a company dealing in metal products. The work is mainly divided into functions including production, purchase, marketing, accounts and personnel. Identify the type of organisational structure followed by the organisation.
(a) Functional Structure
(b) Relational structure
(c) Divisional structure
(d) None of these
Answer : A

Question. Which of the following is not true?
(a) Delegation is a tool used to get subordinates to perform tasks and duties identified during decentralisation.
(b) Decentralisation requires delegation tool to grant authority and power to the subordinates.
(c) Decentralisation means that control and decisionmaking lies only with the top management
(d) All of these
Answer : C

Question. For delegation to be effective, it is essential that responsibility be accompanied with necessary
(a) authority
(b) manpower
(c) incentives
(d) promotions
Answer : A

Question. Rishabh has joined as a Creative Head in an entertainment company. He always ensures that the work has been divided into small and manageable activities and also the activities of similar nature are grouped together.
Identify the related step in organising process being mentioned in the above lines.
(a) Identification and division of work
(b) Departmentalisation
(c) Assignment of duties
(d) Establishing reporting relationships
Answer : B

Question. Sunrise Ltd., grows, so it needs to add more employees,create new departments and introduce new levels of management. Identify the type of organizational structure :
(a) Divisional
(b) Functional
(c) Both (a) and (b)
(d) None of the above
Answer : A

Question. Kunal opens a retail mart in a local market. As he knows it will be impossible for him to handle all work alone, he appoints Manak to perform tasks on his behalf thereby reducing his workload. This decision provided Kunal with more time to concentrate on important matters:
(a) Delegation
(b) Decentralization
(c) Both (a) and (b)
(d) None of the above
Answer : A

Question. Damara Ltd. is engaged in manufacturing televisions. The target of the organisation is to manufacture 500 TV’s a day. There is an occupational specialisation in the organisation which promotes efficiency of employees. There is no duplication of efforts in such type of organisation structure. Identify the type of organisation structure discribed above.
(a) Functional structure
(b) Divisional structure
(c) Decentralisation
(d) Delegation
Answer : B

Question. Deepak runs a software company. Now he wants to open a retail company. The size of organization is large and there is a need for higher degree of specialization.
Identify the organizational structure here :
(a) Divisional structure
(b) Functional structure
(c) Both (a) and (b)
(d) None of these
Answer : B

Question. Ram industry manufactures office furniture. To improve its growth potential and increase market share the company choose to diversify its operations to improve its growth potential and increase market share. Many alternatives were generated for the purpose and were thoroughly discussed amongst the members of the organisation, as the project was important. After evaluating the various alternatives Shyam, the managing director of the company decided that they should add ‘home interiors and furnishings’ as a new line of business activity. Choose the framework, which the diversified organisation should adopt, to enable it to cope with the emerging complexity?
(a) Functional
(b) Divisional
(c) Both (a) and (b)
(d) None of these
Answer : B

Question. Kiran opens a retail mart in a local market. As she knows it will be impossible for her to handle all work alone, she appoints Mahesh to perform tasks on her behalf thereby reducing her workload. This decision provided Kiran with more time to concentrate on important matters:
(a) Delegation
(b) Decentralization
(c) Both (a) and (b)
(d) None of these
Answer : A

Question. A man is running a fashion store. He sells variety of goods such as textiles, garments, cosmetics etc.He follows an organisation structure. Identify the organisational structure here.
(a) Divisional structure
(b) Functional structure
(c) Both (a) and (b)
(d) None of the above
Answer : A

Question. Aman runs a factory wherein he manufactures leather shoes. The business is doing well and he intends to expand by diversifying into leather bags as well as leather jackets. Which type of organization structure would you recommend for his expanded organization?
(a) Functional structure
(b) Divisional structure
(c) Both (a) and (b)
(d) None of these
Answer : A

Question. National Vritech Ltd. has grown in size. It was a market leader but with changes in business environment and with the entry of MNCs, its market share is declining. To cope up with the situation, the CEO starts delegating some of his authority to the General Manager, who also felt himself overburdened and with the approval of CEO disperses some of his authority to various levels throughout the organisation. Identify the concept of management discussed above.
(a) Delegation
(b) Decentralization
(c) Both (a) and (b)
(d) None of these
Answer : B

Question. Priya works in an organization where she enjoys friendly relationships with her colleagues, they go for parties together. She loves to work there. Name the type of organisation.
(a) Formal organization
(b) Informal organization
(c) Both (a) and (b)
(d) None of these
Answer : B

Question. Aman runs a factory wherein he manufactures coolers. The business is doing well, and he intends to expand by diversifying into air conditioners and laptops. Which type of organization structure would you recommend for his expanded organisation?
(a) Functional structure
(b) Divisional structure
(c) Both (a) and (b)
(d) None of these
Answer : B

Question. Priya works in an organisation where she does not enjoy friendly relationships with her colleagues.She has to follow the set rules and regulations of the organization. She only focuses on work and there is no interaction among employees due to which she is planning to leave the organisation. Name the type of organisation.
(a) Formal organisation
(b) Informal organisation
(c) Both (a) and (b)
(d) None of these
Answer : A

Question. ENX Ltd. is a which organisation holds its meeting according to the mood of the members. It has no set pattern of behavior. Identify the types of organisation.
(a) Formal Organisation
(b) Informal Organisation
(c) Both (a) and (b)
(d) None of these
Answer : B

Question. Devlaya education private Ltd. formed a Cricket Club where every employee of the organisation plays cricket on each weekend irrespective of their position or rank in the organisation. Identify the type of organisation.
(a) Formal Organisation
(b) Informal Organisation
(c) Both (a) and (b)
(d) None of these
Answer : B

Question. Name the network of social relationship that arises spontaneously due tointeraction at work .
Answer: Informal organization.

Question. What is the type of organization where the decision making authority lies with the top management.
Answer: Centralisation

Question. What is span of management?
Answer: Number of subordinates that can be managed efficiently by superior.

Question. What is the form of organization known for giving rise to rumours?
Answer: Informal.

Question. A company has its registered office in Delhi, manufacturing unit at Guragaon & marketing & salses department at Faridabad. The company manufactures the consumer products. Which type of organization structure should it adopt to achieve its targets.
Answer: Functional organization structure.

Question. Name the function of management that initiates implementation plans by clarifying jobs & working relationships.
Answer: Organising.

Question. In an electrical goods manufacturing company,there are 4 main activities-marketing,production,finance & personnel. The general manager is planning to structure the organization. Which type of organization structure should be adopt and why? Give two reasons.
Answer: In the given situation the general manager should go for functional organization structure. The reason for suggesting such an organization structure are:
a) The firm is clealing in electrical goods which requires services of the professtionally trained experts, and
b) All the activities of similar nature will be placed under one wordinating head, this will facilitate specialization as well as standarisation.

Question. “If we delegate authority, we multiply it by two: If we decentralize it, we multiply it by many. Name the two concepts to which this statement is related?
Answer: a) Delegation of authority b) Decentralisation.

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 point? Justify you answer by giving proper agreements.
Answer:  Statement is incorrect as the principle of absoluteness of responsibility is violated.

Question. A Manager revises the production target from 3000 kg per month to 6000 kg per month. But the authority to purchase raw material was not given by the manager. Therefore, revised production target could not be achieved. Who is responsible?
Answer:  The Manager is responsible because responsibility has been created without granting authority. It violates the principle of parity of authority and responsibility.

Question. Kavita runs a factory manufacturing ready made clothes. The business has been doing well and she intends to expand the business by diversifying the business into ladies footwears, thereby keeping her company growing.
Which type of structure would you recommend her for expanding organization? Give two reasons in support of your answer.
Answer: She should adopt ‘Divisional organizational structure’ for expanding her business because of the following reasons:
i) Product specialization enhances various skills in a divisional head .
ii) Easy to fix responsibility and hold divisions accountable for their results

Question. the marketing manager of abha ltd an organization manufacturing motor cycles is asked to achieve a target sale of 200 motor cycles per day . he delegates the task to 20 sales managers working under him. Five of the sales managers could not achieve tneir respective targets. Is the marketing manager responsible? Explain in brief the relevant principal in support of your answer.
Answer: yes the marketing manager is responsible for it.
Here the principal of absoluteness of responsibility will apply.

MCQs for NCERT Class 12 Business Studies Organising

Question.A tall structure has a
a. narrow span of management
b.no span
c.informal organization
d.centralization

Answer : A

Question. A tall structure has a
(a) Narrow span of management
(b) Wide span of management
(c) No span of management
(d) Less levels of management

Answer : A

Question. Centralisation refers to
(a) Retention of decision making authority
(b) Dispersal of decision making authority
(c) Creating divisions as profit centers
(d) Opening new centers or branches

Answer : A

Question. For delegation to be effective it is essential that responsibility be accompanied with necessary
(a) Authority
(b) Manpower
(c) Incentives
(d) Promotions

Answer : A

Question. Span of management is defined as
a.number of employees a superior can manage
b.number of employee in a division
c.Level of management
d. number of employee in a department. 

Answer : A

Question. “Every step that increases the importance of the subordinates is called decentralisation and any step that decreases it is called centralisation”. What is it about?
(a) Formal organisation
(b) Informal organisation
(c) Both (a) and (b)
(d) None of these

Answer : D

Question. Grouping of activities on the basis of product lines is a part of
(a) Delegated organisation
(b) Divisional organisation
(c) Functional organisation
(d) Autonomous organisation

Answer : B

Question. Grouping of activities on the basis of functions is a part of
(a) Decentralised organisation
(b) Divisional organisation
(c) Functional organisation
(d) Centralised organisation

Answer : C

Question. Delegation of authority merely means the granting of authority to subordinates to operate:
(understanding)
a) Within prescribed limits
b) Beyond prescribed limits
c) If commensurate with responsibility
d) Only when required.

Answer : A

MCQs for NCERT Class 12 Business Studies Staffing 

Question.Under which method of training employees are given training away from the actual R workfloor?
a) Apprenticeship programme
b) Internship training
c) Vestibule training
d) Induction training
Answer :  C

Question.These are the test which provide close to a person's emotions, reactions, etc. 
a) Interest test
b)Trade test
c)Personality test
d)Aptitude test
Answer : C

Question.It is a mechanism that attempts to measure certain characteristics of an individual: 
a)Selection test
b) Trade test
c)Intelligence test
d)Interest test
Answer :  A

Question.The form which contains certain vital details about the candidate which are authenticated and attested by him or her is: 
a)Job offer
b)Contractor employment
c)Medical test report
d)Attestation form

Answer :  D

Question. Which of the following is not the process of selection?
a)Reference and background checks
b)Training and development
c)Medical examination
d)Contract of employment

Answer :  B

Question. -------- function is concerned with bringing right and efficient people in organization.
(a)staffing
(b)planning
(c)organizing
(d)controlling 

Answer :  A

Question.The concept which involves growth of individual in all respect:
(a) development
(b) transfer
(c) promotion
(d) none 

Answer :  A

Question. How does informal system work in a formal organization?
Answer: An informal system works in an informal organisation without any formalities.
a. An informal organisation originates from within the formal organisation as a result of personal interaction among employees.
b. The standards of behaviour evolve from group norms rather than officially laid down rules and regulations.
c. Independent channels of communication without specified direction of flow of information are developed by group members.

Question. Discuss the steps of Organising.
Answer: a) Identification and Division of Work The first step in the process of organizing involves identifying and dividing the total work to be done into specific activities (called jobs) in accordance with previously determined plAns.. Such division of work into jobs is necessary because of the following reasons : One individual cannot perform the entire work. By dividing the work, the burden of work can be shared among the employees.
b) Grouping jobs and Departmentalisation The second step in organizing is to combine or group similar/related jobs into larger units called departments, divisions or sections. This grouping process is called “Departmentalisation”. Departments can be created using several criteria as a basis such as products territory etc.
c) Assignment of Duties:
It is necessary to allocate work to various employees. Once departments have been formed, each of them is placed under the charge of an individual, called departmental head (e.g., production ,manager, finance manager, marketing manager, etc.) Jobs are then allocated to the members of each department according to their skills and competencies.
d) Establishing Reporting Relationships : Merely allocating work is not enough. Each individual should also know from whom he has to take orders and to whom he is accountable. The establishment of such reporting relationships elps in coordination amongst various departments.

Question. Give any three demerits of divisional organisation.
Answer: Demerits of Divisional structure
(i) Departmental conflicts : Conflict may arise among different divisions with reference to allocation of funds and further a particular division my seek to maximize its profits at the cost of other divisions.
(ii) Costly : It may lead to increase in costs since there may be a duplication of activities across products. Providing each division with separate  set of similar functions increases expenditure.
(iii) Ignoring of organizational interests : It provides managers with the authority to supervise all activities related to a particular division. In course of time, such a manager may gain power and then he may ignore organizational interests.

Question. State four advantages of Delegation of Authority.
Answer: Delegation of authority is necessary in all types of organizations. Reasons can be seen through the importance.
The importance of delegation of authority may be outlined as follows :
1. Reduced workload of managers : Delegation of authority permits a manager to share his workload with his subordinates. By passing on the routine work to the subordinates, the manager is able to concentrate on more important aspects of his subordinates and is able to concentrate on policy matters and decision-making. This would increase his effectiveness.
2. Effective management : The manager who delegates authority can perform much more than the one who does not. This is because the manager can get some work done by his subordinates and is able to concentrate on policy matters and decision-making. This would increase his effectiveness.
3. Motivation of employees : Delegation implies grant of authority to the subordinates along with responsibility for work. A result, subordinates have a sense of recognition. They are motivated to work for higher performance. They do their job to the best of their abilities and skills.
4. Employee development : As a result of delegation, employees get more opportunities to utilize their talent. It allows to develop those skills which will improve their career prospects.
It makes them better leaders and decision makers. Thus, delegation helps by preparing better future managers.

Question. State any two circumstances in which Divisional organization structure is more suitable.
Answer: Suitability
(i) Divisional structure is suitable for those business enterprises where a large variety of products are manufactured using different productive resources.
(ii) When an organisation grows and needs to add more employees, create more departments and introduce new levels of management, it will decide to adopt a divisional structure.

Question. Delegation of authority is based on the elementary principle of division of work. Explain.
Answer: In division of work, the work is divided into small tasks. Same way in delegation, the manager divides some of his work & authority among his subordinates. No manager can perform all thefunctions himself. To get the work done efficiently and in a specialized manner, the manager divides the work among his subordinates according to their qualification & capability.

Question. Authority can be delegated but responsibility cannot. Explain.
Answer: Authority can be delegated but responsibility cannot. Delegation does not mean abdication.
The manager shall still be accountable for the performance of assigned tasks. The manager cannot escape from the responsibility for any default or mistake on the part of his subordinates.
Thus irrespective of the extent of delegated authority, the manager shall still be accountable to the same extent as before delegation.

Long Answer Type Questions

Question. Distinguish between Delegation of Authority and Decentralisation
Answer: 

Question. Distinguish between Formal and Informal Organisation 
Answer: 

Question. What is meant. by functional structure? Give its merits & demerits
Answer: Functional organization structure is a structure whereby the departments are created on the basis of functions of the organization such as Production, marketing, finance etc.
Advantages/Merits
1. Specialisation : A functional structure leads to occupational specialization since emphasis is placed on specific functions. this promotes efficiency in utilization of manpower as employee perform similar tasks within a department and are able to improve performance.
2. Efficiency : It helps in increasing managerial and operational efficiency and this results in increased profit.
3. Minimises costs : It leads to minimum duplication of efforst which results in economies of scale and thus lowers cost.
4. Better control and coordination : It promotes control and coordination within a department because of similarity in the tasks being performed.
Proper attention : It ensures that different functions get due attention.
5. Ease in training employees : In makes training of employees easier as the focus is only on a limited range of skills.
Disadvantages/Demerits
1. Functional empires : A functional structure places less emphasis on overall organizational objectives than the departmental objectives. Such practices may lead to functional empires wherin the importance of a particular function (or department)may be over-emphasised.
2. Problems in coordination : Pursuing departmental interests at the cost of organizational interests can also hinder the interaction between two or more departments. It may lead to problems in coordination among different departments.
3. Conflict of interests : A conflict of interests may arise among departments when the interests of two or more departments are not compatible.
4. Inflexibility : It may lead to inflexibility as people with same skills and knowledge base may develop a narrow perspective and thus have difficulty.

Question. Why is organising considered an important function of management? Give any six reasons?
Answer: The importance of organizing may be summaries as follows :-
(a) Benefits of specialization : The activities are grouped very carefully into specialized jobs on the basis of similarity. repetitive performance of a particular task leads to specialization.
(b) Clarity in working relationships : The jobs of managers and non managers are clearly defined & differentiated.
(c) Effective administration : Organising provides a clear description of a jobs and related duties.
This helps to avoid confusion and duplication. Clarity in working relationship enables proper execution of work. This brings effectiveness in administration.
(d) Source of support and security improves job satisfaction: Organising is a source of support, security and satisfaction to managers and employees in performing their assigned tasks. It recognizes the status levels of members; each one of the members enjoys a definite status and position in the organisation.
In a sound organisation every individual is assigned the job for which he is best suited. The assignment of right jobs to right persons improves job satisfaction among the employees.
(e) Optimum utilization of resources : A sound organisation helps In the optimum utilization of technological and human resources by avoiding duplication of work and overlapping of efforts.
(f) Adaptation of change : The process of organizing allows a business enterprise to adapt itself according to changes in the business environment. It allows the organisation structure to be suitably modified and the revision of inter-relationships amongst managerial levels to pave the way for a smooth running of the business.
Conclusion : Organising is a process by which the manager— brings order out of chaos,
removes conflict among people over work or responsibility, and creates an environment suitable for teamwork.

Question. “Delegation is the entrustment of responsibility and authority to another and the creation of accountability for performance.” Explain the elements of delegation in the light of this statement.
Answer: Elements of Delegation of Authority
Responsibility  Authority  Accountability
a) Responsibility
Responsibility is the obligation of a subordinate to carry out assigned activities to the best of his abilities.
It arises from a superior-subordinate relationship because the subordinate is bound to perform the duty assigned to him by his superior.
Thus, responsibility flows upwards, i.e., as subordinate will always be responsible to his superior.
b) Authority
Authority is the sum of powers and rights of an individual to command his subordinates, to use financial, material and human resources as well as the right to take action within the scope of his position.
Authority is needed to discharge a given responsibility.
Authority flows from top to bottom, i.e., the superior has authority over the subordinate.
An important consideration to be kept in view with respect to both authority and responsibility is that when an employee is given responsibility for a job he must also be given the degree of authority necessary to carry it out. Thus, for effective delegation, the authority granted must be equal to the assigned responsibility.
If authority granted is more than responsibility, it may lead to misuse of authority.
On the other hand, if responsibility assigned is more than authority, it may make a person ineffective.
c) Accountability
Accountability implies being Ans. werable for the final outcome. Once authority has been delegated and responsibility accepted, one cannot deny accountability.
It cannot be delegated and flows upwards, i.e., a subordinate will be accountable to a superior for satisfactory performance of work.
It indicates that the manager has to ensure the proper discharge of duties by his subordinates.
Conclusion:
• While authority is delegated, responsibility is assumed, accountability is imposed. Responsibility is derived from authority and accountability is derived from responsibility.

MCQs for NCERT Class 12 Business Studies Organising

Queston. On which of the following does decentralisation depend?
(a) Centralisation
(b) Specialisation
(c) Scientific Management
(d) Delegation

Answer : D

Queston.Grouping of activities on the basis of function is a part of 
1. Decentralized organisation
2. Divisional organisation
3. Functional organisation
4. Centralised organisation
Answer : Functional structure 

Queston. Extended form of delegation of authority is called:
(a) Specialisation
(b) Centralisation
(c) Decentralisation
(d) Division of labour

Answer : C

Queston. (I) Delegation of authority is inevitable and decentralisation is voluntary.
(II) Scope of delegation of authority is limited and the scope of decentralisation is broad.
Above both statement are:
(a) True
(b) False
(c) Statement (I) is True and Statement (II) is False
(d) Statement (I) is False and Statement (II) is True

Answer : A

Queston. Which of the following is not an element of delegation?
(a) Accountability
(b) Authority
(c) Responsibility
(d) Informal organisation

Answer : D

Queston. A network of social relationship that arises spontaneously due to interaction at work is called:
(a) Formal organisation
(b) Informal organisation
(c) Decentralisation
(d) Delegation

Answer : B

Queston. Which of the following does not follow the scalar chain?
(a) Functional structure
(b) Divisional structure
(c) Formal organisation
(d) Informal organisation.

Answer : D

MCQs for NCERT Class 12 Business Studies Staffing

Question. The source of recruitment in which newspaper, employment exchange, T.V.are used:
(a)external
(b)internal
(c)both
(d) none 

Answer :  A

Question. Advertisement through Newspaper, T.V. , radio, professional journal & magazines are ______ method of recruitment.
a) Direct
b) Indirect
c) Third party
d) None.
Answer :  B

Question. Staffing is for:
(a)Big organization
(b)small organization
(c)A and B both
(d)none 

Answer :  B

Question. Human resource management is for :
(a)large organization
(b) small organization
(c)a and b both
(d) none 

Answer :  A

Question. Employment exchange are generally the main agencies of ______
a) Private employment
b) Public employment
c) Professional employment
d) None.
Answer :  B

Question. Contract of employment contains ________ information.
(a) Job Title
(b) Responsibilities
(c) Allowances
(d) All the above

Answer : D

Question. What is not included in the staffing?
(a) Selection
(b) Training
(c) Directing
(d) Promotion

Answer : C

Fill in the blanks

1. The test which is used to measure the intelligence quotient of an individual is called intelligence test.

2. The difference between aptitude test and trade test is that the former

3. measures the potential to acquire skills and the later the actual skills possessed.

2 . Job offer is made through a letter of appointment.

4. The term training is used to indicate the process by which attitude, skills and abilities of employees to perform specific jobs are increased.

5. When the employees are required to handle sophisticated machinery and equipment, then vestibule training is used.

6. Under Apprenticeship training, a uniform period of training is offered to trainees in which both fast and slow learn here, are placed together.

7. The effectiveness of the selection process could ultimately be tested in terms of on the job of the person chosen.

8. The test used to measure existing skills of the individual are called tradetest.

9. After the selection decision and before the job offer is made in,the step of selection process which comes in between is medical examination.

10. Internship training is a joint programme of training in which education institutionsand business firms cooperate.

11. Performance based salary plans make payment according to piecework workers.

12. Continuous Learning facilities the opportunities to rise to the top.

13. Selection is a Negative process, as unsuitable candidates are eliminated.