Table of Contents
Short Answer Type Question:
Q.1 Define ‘Organising’?
ANSWER: Organising can be defined as a process that initiates implementation of plans by clarifying jobs and working relationships and effectively deploying resources for attainment of identified and desired results.
Q.2 What are the steps in the process of organising?
ANSWER: The steps in the process of organising are:
→ Identification and division of work: The first step in the process of organising involves identifying and dividing the work that has to be done in accordance with previously determined plans.
→ Departmentalisation: Once work has been divided into small and manageable activities then those activities which are similar in nature are grouped together.
→ Assignment of duties: It is necessary to define the work of different job positions and accordingly allocate work to various employees.
→ Establishing reporting relation ships: Each individual should also know who he has to take orders from and to whom he is accountable.
Q.3 Discuss the elements of delegation.
ANSWER: The elements of delegation are:
→ Authority: It refers to the right of an individual to command his subordinates and to take action within the scope of his position. It also refers to the right to take decisions inherent in a managerial position to tell people what to do and expect them to do it.
→ Responsibility: Responsibility is the obligation of a subordinate to properly perform the assigned duty. It arises from a superior – subordinate relationship because the subordinate is bound to perform the duty assigned to him by his superior.
→ Accountability: It implies being answerable for the final outcome. Once authority has been delegated and responsibility accepted, one cannot deny accountability.
Q.4 What does the term ‘Span of management’ refer to?
ANSWER: Span of management refers to the number of subordinates that can be effectively managed by a superior. This determines the levels of management in the structure.
Q.5 Under what circumstances would functional structure prove to be an appropriate choice?
ANSWER: If an organisation is large, has a diversified activities and operations require a high degree of specialisation then functional structure prove to be an appropriate choice.
Q.6 Draw a diagram depicting a divisional structure.
ANSWER:
Q.7 Can a large sized organisation be totally centralised of decentralised? Give your opinion.
ANSWER: No, a large sized organisation can never be completely centralised or decentralised. As it grows in size and complexity , there is a tendency to move towards decentralised decision making. This is because in large organisations those employees who are directly and closely involved with certain operations tend to have more knowledge about them than the top management which may only be indirectly associated with individual operations. Hence, there is a need for a balance between these coexisting forces. Thus, it can be said that every organisation will be characterised by both centralisation and decentralisation.
Q.8 Decentralisation is extending delegation to the lowest level. Comment.
ANSWER: Decentralisation is extending delegation to the lowest level. Decentralisation refers to delegation of authority throughout all the levels of the organisation. Decision making authority is shared with lower levels and is consequently placed nearest to the points of action. Delegation refers to the downward transfer of authority from a superior to a subordinate. Delegation is a process and decentralisation is end result.
For Example: If a CEO of an organisation gives responsibility to production head for the production for specific units of products. The production head shares his responsibility of hiring workers with his managers. Managers shares his responsibility of supervising the workers with supervisors. Therefore, the delegation at each level leads to decentralisation.
Long Answer Type Questions:
Q.1Why is delegation considered essential for effective organising?
ANSWER: Effective delegation leads to the following benefits
(i) Effective Management By empowering the employees, the managers are able to function more efficiently as they get more time to concentrate on important matters. This makes the working of all the levels effective and efficient.
(ii) Employee Development As a result of delegation, employees get more opportunities to utilise their talent and this may give rise to talent abilities in them. It makes them better leaders and decision makers. Delegation empowers the employees by providing them with the chance to use their skills, gain experience and develop themselves for higher positions.
(iii) Motivation of Employees Delegation helps in developing the talents of the employees. It also has psychological benefits. Responsibility for work builds the self-esteem of an employee and improves his confidence. He feels encouraged and tries to improve his performance further.
(iv) Facilitation of Growth Delegation helps in the expansion of an organisation by providing a ready workforce to take up leading positions in new ventures. Trained and experienced employees are able to play significant roles in the launch of new projects.
(v) Basis of Management Hierarchy Delegation of authority establishes superior-subordinate, which are the basis of hierarchy of management. The extent of delegated authority also decides the power that each job position enjoys in the organisation.
(vi) Better Co-ordination Due to delegation work, duties, power all becomes very clear. This helps to avoid overlapping of duties and duplication of effort as it gives a clear picture of the work being done at various levels. Such clarity in reporting relationships help in developing and maintaining effective coordination amongst the departments, levels and functions of management.
Q.2 What is a divisional structure? Discuss its advantages and limitations.
ANSWER: A divisional structure comprises of separate business units or divisions. Each unit has a divisional manager responsible for performance and who has authority over the unit. Generally, manpower is grouped on the basis of different products manufactured.
Merits
(i) Skill Development Product specialisation helps in the development of varied skills in a divisional head and this prepares him for higher positions as he gains experience in all functions.
(ii) Accountability Divisional heads are accountable for profits, as revenues and costs related to different departments, can be easily identified and assigned to them. This provides proper basis for performance measurement.
(iii) Quick Decision Making It promotes flexibility and initiative because each division functions as an autonomous unit which leads to faster decision making.
(iv) Facilitates Expansion It facilitates 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.
Demerits
The divisional structure has certain disadvantages
(i) Conflicts Conflicts may arise among different divisions with reference to allocation of funds.
(ii) Higher Cost Providing each division with separate set of similar functions increases expenditure.
(iii) Ignoring Organisational Goals 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 in a bid to assert his independence may ignore organisational interests.
Q.3 Decentralisation is an optional policy. Explain why an organisation would choose to be decentralised.
ANSWER: Decentralisation is much more than mere transfer of authority to the lower levels of management hierarchy. Its importance can be understood from the following points
(i) Develops Initiative Among Subordinates When lower managerial levels are given freedom to take their own decisions they learn to depend on their judgement. A decentralised policy helps to identify those executives, who have the necessary potential to become dynamic leaders.
(ii) Develops Managerial Talent for the Future Formal training plays an important part in equipping subordinates with skills that help them rise in the organisation, but equally important is the experience gained by handling assignments independently. It gives them a chance to prove their abilities and creates a reservoir of qualified manpower.
(iii) Quick Decision Making In a decentralised organisation, however, since decisions are taken at levels, which are nearest to the points of action and there is no requirement for approval from many levels the process is much faster.
(iv) Relief to Top Management Decentralisation leaves the top management with more time, which they can devote to important policy decisions rather than occupying their time with both policy as well as operational decisions.
(v) Facilitates Growth Decentralisation awards greater autonomy to the lower levels of management as well as divisional or departmental heads. This allows them to function in a manner best suited to their department and develops a sense of competition amongst the departments, consequently, the productivity levels increase and the organisation is able to generate more returns, which can be used for expansion purposes.
(vi) Better Control Decentralisation makes it possible to evaluate performance at each level and the departments can be individually held accountable for their results. The extent of achievement of organisational objectives as well as the contribution of each department in meeting, the over all objectives can be ascertained
Q.4 How does informal organisation support the formal organisation?
ANSWER: The informal organisation offers many benefits. Important among them are given as follows
(i) Quick Feedback Prescribed lines of communication are not followed. Thus, the informal organisation leads to faster spread of information as well as quick feedback.
(ii) Social Needs It helps to fulfill social needs of the members and allows them to find like minded people. This enhances their job satisfaction, since it gives them a sense of belongingness in the organisation.
(iii) Organisational Objectives It contributes towards fulfilment of organisational objectives by compensating for inadequacies in the formal organisation e.g., feedbacks on new policies etc can be tested through informal network.
Q.5 Distinguish between centralisation and decentralisation.
ANSWER: Difference between centralisation and decentralisation.
Q.6How is a functional structure different from a divisional structure?
ANSWER: Difference between functional and divisional structure