Hridaan’s Edumax

S1 - 18, Gate 3, Dosti Shoppe

Imperia, Manpada Thane

Organsing
CLASS 12 - BUSINESS STUDIES

Time Allowed : 1 mins Maximum Marks : 280

Section A

1 The directors of Girish [3]

Electronics, an
organisation
manufacturing T.V.
components, have
asked Vinod, their
Marketing Manager to
achieve a target sale of
₹ 5,00,000 per day.
Vinod has delegated
the task to Ankit, his
Deputy Sales Manager
working under him.
Ankit could not achieve
the targets. Is Vinod
responsible for the
failure of Ankit? State
the relevant principle
in support of your
answer.
2 Progress Ltd. is facing [3]
difficulties in
introduction of
machinery of latest
technology as they are
facing resistance from
the informal groups
who are pressurizing
the members to work
against organizational
interests. As the
Human Resources
 manager of the
company would you
advise the
management of the
company to confront
them or give them
some other suggestion
to deal with the
informal groups.
3 Identify and state the [3]
function of
management which
ensures that the
organisational
resources are being
used effectively and
efficiently for the
achievement of pre -
determined goals.
4 Kiran Industries is a [3]
company dealing in
office furniture. The
company chose to
diversify its operations
to improve its growth
potential and increase
market share. As the
project was important,
many alternatives were
generated for the
purpose and were
thoroughly discussed
amongst the members
of the organisation.
After evaluating the
various alternatives,
Sukhvinder, the
Managing Director of
the company, decided
that they should add
’Home Interiors and
Furnishings’ as a new
line of business
activity.
 1. Name the
framework,
which the
diversified
organisation
should adopt, to
enable it to cope
with the
emerging
complexity?
Give one reason
in support of
your answer.

2. State any two

limitations of
this framework

5 State any three [3]

limitations of
’divisional structure’ of
an organisation.
6 Identify and state the [3]
type of organisation
structure that should
be followed by the
company in the given
cases:

1. Shenoy Ltd.
grows, so it
needs to add
more
employees,
create new
departments
and introduce
new levels of
management.

2. Sagar Ltd. is a
large
organisation
having
diversified
activities and
 operations
requires a high
degree of
specialisation.

7 Shan Spices Ltd. are [3]

the manufacturer of
different food specific
spices like Rajmaa
Masala, Cholley Masala,
Aaloo Parantha Masala
etc. Mr. Raghav, the
owner of the company
has created different
departments for
purchase, production,
marketing, finance and
human resource. There
are thirty employees
working in the
organisation. Planning
is of paramount
importance to the
company as Mr. Raghav
believes that effective
planning leads to the
achievement of
organisational
objectives. So in order
to make employees
focus on objectives, he
issued instructions that
during working hours
only official matters
will be discussed. He
made certain rules and
code of conduct for the
employees to follow,
according to which
employees are not
allowed to visit and
talk to the employees
of other departments
except for official work.
He emphasised on
work performance
 which resulted in the
smooth functioning of
the organisation.

1. Identify and
state the type of
organisation
mentioned in
the above para.

2. State one
feature of the
concept
identified in
part (a) as
mentioned in
the above para.

3. What was the

purpose behind
the formulation
of rules for the
employees that
restricted their
personal
communication
with the
employees of
other
departments?

8 Distinguish between [3]

Functional and
Divisional structure on
the basis of the
following points :

1. Coordination

2. Managerial
Development

3. Cost

9 Organisation structure [3]

is the outcome of the
organising process. Do
you agree? Give
 reasons in support of
your answer.
10 What is meant by [3]
formal organisation?
State its advantages.
11 Atul joins as a Regional [3]
Sales Head in the
export division of a
FMCG (fast moving
consumer goods)
company. In a
departmental meeting,
he asks one of this
subordinates, Manik, to
take charge of the
company’s new office
in Dubai. He allocates
the work to him and
grants the necessary
authority. However,
within a month by
seeking regular
feedback on the extent
of work accomplished
from Manik, Atul
realises that Manik is
not doing the work as
per his expectations. So
he takes away the
authority delegated to
him and re delegates
the work to Prakrit.
Due to the time wasted
in this switch over, the
work at the Dubai
office suffers
tremendously and the
company is not able to
meet its desired
goals.In context of the
above case:

1. Why is Manik
supposed to
give regular
 feedback about
work to Atul?

2. Can the
authority
granted to a
subordinate be
taken back and
re - delegated to
another person?

3. Can Manik be
held responsible
for not meeting
the work
related
expectations of
Atul? Give a
suitable reason
in support of
your answer.

4. Differentiate
between
authority,
responsibility
and
accountability
on the basis of
origin and flow.

12 If we delegate the [3]

authority we multiply
it by two, If we
decentralize it, we
multiply it by money.
13 While authority is [3]
delegated,
responsibility is
assumed,
accountability is
imposed. Explain the
statement.
14 Why does informal [3]
organisation exist
within the framework
 of formal organisation?
Give any two reasons
for the emergence of
informal organisations.
15 Draw a diagram [3]
depicting a divisional
structure.
16 Fresh Foods Ltd. is a [3]
well - known company
making different food
materials. Mr.
Himanshu is the
managing director of
the company. He is
fully attached to the
employees of his
company. This is the
prime reason that
before taking any
decision he consults all
the concerned
employees. A
suggestion box has also
been provided in the
company. It is opened
once in ten days. The
employees giving
positive suggestions
are suitably rewarded.
Besides this, all the
employees of the
company also enjoy
complete freedom to
communicate with any
senior officer any time,
for all types of matter
whether it is job -
related or personal.

1. Identify the type

of organisation
highlighted in
the above case.

2. State its any two

 advantages.

17 Surakhshit Sendee [3]

Providers Limited is a
well - known company
for removing the
routine problems of the
people. This company
provides all types of
big or small services;
namely, Health
services, Complaints
regarding electricity
faults, Complaints
about faults in
electronic items,
Complaints about
faults in vehiclesetc.
This company has
opened its offices
indifferent places. The
policy of the company
is that women should
be preferred to be
appointed as the Heads
of every office. Besides,
under this policy, some
positions shall be
reserved for
handicapped women
also. The head of every
office shall have the full
authority to make
decisions concerning
the activities of her
office. For example,
every head shall be
completely free to
bargain with
customers regarding
the fee to be realised
from them.

1. Which concept
of management
has been
 mentioned in
the paragraph
given above?

2. Write about two

of the
advantages of
the concept
identified in
point (a).

3. Identify two of
the values of the
company.

18 What is meant by [3]

’informal
organisation’?State its
advantages.
19 Delegation does not [3]
mean abdication. Do
you agree? Give
reasons in support of
your answer.
20 Delegation of authority, [3]
undoubtedly
empowers an
employee to act for his
superior, but the
superior would still be
accountable for the
outcome. Explain the
elements of delegation
of authority discussed
above.
21 Karan and Arjun are [3]
first cousins. After
completing a course in
journalism, both of
them join a leading
newspaper company as
sub - editors. Over the
years, due to their
consistent hard work,
they are promoted to
 the post of chief editors
in different divisions.
However, the way of
their functioning is
totally different. Karan
believes in the
capabilities of his
subordinates and
therefore follows the
philosophy of selective
dispersal of authority
throughout all the
levels in his division.
On the other hand,
Arjun prefers to
function through strict
controls and retains all
the decision - making
authority with
himself.In the context
of the above case: How
do Karan and Arjun
differ in their policies
related to the extent of
delegation of
authority? Explain.
22 The need for an [3]
adequate organisation
structure is felt by an
enterprise whenever it
grows in size or
complexity. Do you
agree? Give reasons in
support of your
answer.
23 Name and explain the [3]
two steps in the
process oforganizing
which come after
‘Identification and
division of work’ and
‘Departmentalization’.
24 Home Creations Ltd is [3]
a well - known chain of
large department store
offering various types
of products under one
roof. The company
owns fifty stores in
various parts of the
country. Each store is
placed under the
charge of a manager
who is allowed to rim
their stores
autonomously by
deciding about the
products which may be
promoted, the
appointment of staff,
ways to handle
customer complaints
etc. As these managers
have a deeper
knowledge of the local
situations, it enables
them to take these
decisions effectively
keeping in view the
local circumstances
and consumers’ needs.
This approach helps to
improve customer
service and at the same
time serves to boost
morale and increase
the job satisfaction of
the store managers as
it empowers them to
innovate and use their
initiatives. In the
context of the above
case:

1. Identify and
explain the
policy followed
by ’Home
Creations Ltd.’
to run their
stores
 successfully.

2. Also, give any

three points
highlighting the
importance of
the approach
followed as
identified in
part (a) of the
question.

25 Yash has been [3]

appointed as a
manager in Best Car, a
company giving cars on
rent. But he does not
know from whom he
has to take orders and
to whom he is
accountable. The
reporting relationship
has not been
established in the
company.

1. Identify and
state the step of
the process of
one of the
functions of
management
highlighted
above.

2. List the two

steps which are
performed
immediately
before this step.

26 State any three [3]

limitations of informal
organisation.
27 Mr. Robert, a manager [3]
is of the view that he is
not responsible for the
 quality work that he
has delegated to his
subordinate.Do you
agree with his
viewpoint? Justify your
answer by giving
proper argument.
28 It helps a manager to [3]
extend his area of
operations as without
it, his activities would
be restricted to only
what he himself can
do.Identify the activity
referred to, in the
above statement and
state its elements.
29 “Authority can be [3]
delegated but
accountability cannot.”
Explain the statement.
30 Decentralisation is [3]
much more than a
mere transfer of
authority to the lower
levels of management
hierarchy. State how?
31 Explain [4]
1. Adaptation to
change

2. Effective
administration
as importance
of organising.

32 Directors of XYZ Ltd., [4]

an organisation
manufacturing
computers, have asked
their Production
Manager to achieve a
target production of
150 computers per
 day. The production
manager has asked his
foreman to achieve this
target, but he did not
give him the authority
for the requisition of
tools and materials
from Stores
Department. The
foreman could not
achieve the desired
target. Can the
directors of XYZ Ltd.,
blame the production
manager, and can the
production manager
blame his foreman for
not achieving the
target? Describe, in
brief the relevant
principles relating to
this situation in
support of your
answer.
33 Hindustan Ltd. is [4]
manufacturing
computers, soaps and
textiles. Which type of
organisational
structure would suit
the requirements of
such organisation?
State any three
advantages of this
organisation structure.
34 Aradhana and [4]
Gandharv are heads of
two different
departments in ’Yumco
Ltd’. They are efficient
managers and are able
to motivate the
employees of their
respective
departments to
improve performance.
However, their drive to
excel in their own
sphere of activity
instead of giving
emphasis on objectives
of the enterprise has
hindered the
interaction between
the departments that
Aradhana and
Gandharv are heading.
Often there are inter -
departmental conflicts
and they have become
incompatible. This has
proved to the harmful
in the fulfilment of the
organisational
objectives. The
situation has
deteriorated to such an
extent that the CEO of
’Yumco Ltd.’ has hired
a consultant, Rashmi,
to resolve the problem
after studying the
situation closely,
Rashmi found that the
problem has arisen due
to inflexibility and a
narrow perspective on
the part of both
Aradhana and
Gandharv. She is of the
view that this situation
is a result of the type of
organisational
structure ’Yumco Ltd.’
has adopted.From the
above information,
identify the
organisational
structure adopted by
’Yumco Ltd.’ and state
 any three advantages
of the structure so
identified.
35 Raghav Mehra runs a [4]
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
and why? Give any two
reasons.
36 What is meant by [4]
Decentralisation? State
any three points that
highlight the
importance of
decentralization in an
organization.
37 The Managing Director [4]
- MD of Rahi
Footwear Limited ,
Mr. Jisan Ahmed wants
to expand his business.
Currently, this
company deals in
leather shoes. Mr.
Ahmed called a
meeting of all the four
Departmental
Managers. He asked all
of them to express
their views on the
expansion of the
company. One of them
said that a factory
should be set up to -
make School Bags. The
other one said that a
factory for making
Ladies’ Leather Purses
should be set up. The
third one suggested for
setting up a factory to
Manufacture Socks and
the fourth manager
was in favour of a
factory for making
Plastic Shoes. There
was a discussion on all
the four options in the
meeting and ultimately,
the option for making
Ladies’ Leather Purses
was thought to be
right. Mr. Ahmed took
this job in his own
hands. Mr. Ahmed
purchased the factory
making Ladies’ Leather
Purses which had
already been set up
and was running in a
loss. Now he
determined the
different activities be
performed in the new
business. He
established five
departments so that all
activities could be
completed easily. Trees
in a large number were
planted all around the
factory so as to provide
protection against the
bad effect of leather.

1. Identify the
concepts of
management
described in the
paragraph given
above.
 2. Quote the lines
which help in
identifying the
concepts
identified in the
point (a).

3. Identify the
values which
this company
wants to deliver
tosociety.

38 Differentiate between [4]

Authority and
Responsibility.
39 The Employees of [4]
Ankit Ltd., a software
company, have formed
a dramatic group for
their recreation. Name
the type of
organisation so formed
and state its three
features.
40 Organisation structure [4]
is an indispensable
means; and the wrong
structure will seriously
impair business
performance and even
destroy it. Do you
agree? Give reasons in
support of your
answer.
41 Can a large sized [4]
organisation be totally
centralised of
decentralised? Give
your opinion.
42 Samir Gupta started a [4]
telecommunication
company, ’Donira Ltd’
to manufacture
economical mobile
phones for the Indian
rural market with 15
employees. The
company did very well
in its initial years. As
the product was good
and marketed well, the
demand of its products
went up. To increase
production, the
company decided to
recruit additional
employees. Samir
Gupta, who was earlier
taking all decisions for
the company had to
selectively disperse the
authority. He believed
that subordinates are
competent, capable and
resourceful and can
assume responsibility
for effective
implementation of
their decisions.This
paid off and the
company was not only
able to increase its
production but also
expanded its product
range.

1. Identify the
concept used by
Samir Gupta
through which
he was able to
steer his
company to
greater heights.

2. Also explain any

three points of
importance of
this concept.
43 Explain by giving any [4]
three reasons why
delegation is important
in an organisation.
44 “Authority can be [4]
delegated but
accountability cannot.”
Describe the statement.
45 Difference between [4]
delegation of authority
and decentralisation on
the basis of: (i) Nature
(ii) Purpose (iii)
Freedom of action (iv)
Level of authority.
46 Explain [4]
1. Expansion and
growth and

2. Optimum
utilisation of
resources as
importance of
organising.

47 Define organising as a [4]

process. Enumerate the
steps in the process of
organising.
48 Explain the [4]
statement.“Delegation
of authority helps in
motivating the
subordinates".
49 What is meant by [4]
‘Functional Structure’
of an organisation?
State any five
advantages of this form
of organisational
structure.
50 What is‘formal [4]
organisation’? Brief
any two advantages of
 formal organisation.
51 What are thethree [4]
advantages of informal
organization?
52 Distinguish between [4]
‘delegation’ and
‘decentralisation’ of
authority on the basis
of

1. Purpose

2. Parties involved

3. Withdrawal of
authority.

53 Distinguish between [4]

formal and informal
organisation on the
basis of meaning,
origin, authority and
flow of communication.
54 150 Employees are [4]
working in Shobha
Handloom Pvt. Ltd.
There is the pre -
defined arrangement of
Responsibility,
Authority, and
Accountability in the
company. As a result,
the employees have
hardly any doubt about
their roles in the
company. But the
employees of the
Marketing Department
of the company are
always very unhappy
with a problem. The
problem is that several
times they get orders
from two officers
simultaneously. The
two officers giving
orders are the
Marketing Manager
and the General
Manager. In such a
situation, they fail to
understandwhose
orders they should give
priority - one is their
immediate boss and
the other, a top officer
of the company.
Several departments
have been set up in this
company; namely,
Purchase, Sale,
Advertisement,
Production, Stock,
Research,
Correspondence,
Accounts, Financeand
Personnel. In this way,
there are ten
departments in all. In
every department all
the modem facilities
are available. The
company’s Finance
Manager says that the
Administrative
Expenses of the
company are rather too
much. According to
him, the main reason
for this is the existence
of so many
departments in the
company.

1. Identify the
concepts of
Management
described in the
paragraphs
above.

2. Which principle
 of Management
is being violated
in the company?
Explain.

3. How can the

increasing
Administrative
Expenses of the
company be
checked?
Identify this
concept.

4. The answer
given in point ‘c’
is related to
which function
of Management?

55 Give the meaning of [4]

Formal Organisation .
State it’s any three
advantages.
56 Mr. Peeyush is a senior [6]
accountant in a
departmental
undertaking. He is a
very conscientious
worker and likes to
complete work
assigned to him by
himself. He does not
like to share his work
or take help from his
colleagues and
subordinates.Sometime
s he’s overburdened
with handling so many
different problems that
he misses the deadline
and then has to carry
work home. This adds
to his stress levels and
dissatisfaction. Many
times Mr. Peeyush is
 pulled up by his
seniors for not
completing work well
on time.

1. Identify and
state the
concept of
management
that is being
violated here.

2. State any two

points of
importance of
the concept
identified in (a)
above.

57 A company, which [6]

manufactures a
popular brand of toys,
has been enjoying good
market reputation. It
has a functional
organisational
structure with separate
departments for
Production, Marketing,
Finance, Human
Resources and
Research and
Development. Lately to
use its brand name and
also to cash on to new
business opportunities
it is thinking to
diversify into
manufacture of new
range of electronic toys
for which a new
market is emerging.
Which organisation
structure should be
adopted in this
situation? Give
 concrete reasons with
regard to benefits the
company will derive
from the steps it should
take.
58 Explain the limitations [6]
of informal
organization?
59 In a school fete, the [6]
whole activity is
divided into task
groups each dealing
with a specific area like
the food committee,
the decoration
committee, the
ticketing committee
and so on. These are
under the overall
supervision of the
official in - charge of
the event. Coordinating
relationships are
established among the
various groups to
enable smooth
interaction and clarity
about each group’s
contribution towards
the event.

1. Identify and
state the
function of
management
highlighted
above.

2. State the steps

involved in the
function of
management
identified in
part (a) by
quoting the
lines from the
 above
paragraph.

60 A manager is of the [6]

view that he is not
responsible for the
quality of work that he
has delegated to his
subordinates. Do you
agree with this view
point? Justify your
answer by giving
proper arguments.
61 Distinguish between [6]
formal and informal
organisation on any
five basis.
62 Pawan kumar was the [6]
Chief Executive Officer
of Nath Traders. He
was worried about the
heavy expenditure on
advertising. He asked
his Finance Manager,
Ankit to know the
views of the Sales
Manager and his team
regarding this
expenditure. Ankit was
thinking of calling a
meeting with the Sales
Manager and his team
after tea - break. But
by chance at the time of
tea - break, Ankit met
with the Sales Manager
and his team in the
canteen. They all
discussed about this
expenditure and
finalised to give
suggestion to reduce
this expenditure.
Identify the type of
organisation which
 helped the Finance
Manager Ankit, the
sales Manager and his
team in finalising the
suggestion. State its
any four features.
63 A company has its [6]
registered office in
Delhi, manufacturing
unit at Gurgaon and
marketing and sales
department at
Faridabad. The
company manufactures
the consumer products.
Which type of
organisational
structure should it
adopt to achieve its
target?
64 Explain by giving any [6]
three reasons why
organising is
considered as an
important function of
management.
65 How is a functional [6]
structure different
from a divisional
structure?
66 Alliance Ltd. is engaged [6]
in manufacturing
plastic buckets. The
objective of the
company is to
manufacture 100
buckets a day. To
achieve this, the efforts
of all departments are
coordinated and
interlinked and
authority
responsibility
relationship is
 established among
various job positions.
There is clarity on who
is to report to whom.
Name the function of
management discussed
above. Explain the
steps involved in the
process of this
function.
67 Kanishk is a top level [6]
manager of Sudhir
Textiles Ltd. He has not
distributed work
among the
subordinates according
to their abilities and
skill but on the basis of
caste and religion.
Name the concept used
by Kanishk and explain
it.
68 What is meant by [6]
divisional structure of
organisation? State
itsadvantages.
69 Explain the concept of [6]
functional structure.
Also, explain any four
disadvantages of
functional structure.
70 Voltage fluctuations [6]
have been common and
quite high in India.
They harm our
electrical appliances
like television,
refrigerators and air
conditioners, often
leaving them in a
permanently damaged
condition. N - Guard
Company decided to
manufacture stabilizers
for North India where
the voltage fluctuation
ranges from 220V -
230V. Once the
demand for the North
India was taken care of,
they decided to launch
stabilizers of varying
voltages from 90 V -
260V for meeting the
requirements of
voltage fluctuations in
other regions of India
also. Three engineers
were appointed for
South, West and East
regions of India, as the
voltage was different in
all the three regions.
Though all the
engineers were
appointed to
manufacture stabilizers
but the product
differed from region to
region.

1. Identify the
organisational
structure of N -
Guard Company.

2. State its three

advantages and
two limitations.