1. Voltage fluctuations have been common and quite high in India.

They harm our electrical

appliances like televisions, 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 220 V to 230 V. Once the demand for North India was taken care of,
they decided to launch stabilizers of varying voltages from 90 V – 260 V 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. (a) Identify the organisational structure of N-Guard Company. (b) State any two
advantages and two limitations of the structure identified in the above para.(2019)

Ans: FUNCTIONAL STRUCTURE. Advantages: occupational specialisation, control and coordination,

managerial and operational efficiency, lowers cost, training of employees easier. Limitation: less
emphasis is placed on overall objectives, Problems in coordination, Inter-departmental conflicts,
Inflexibility

2. E-Solution Ltd.’ started its operations in the year 2000. At the time of its inception, the company
had only ten employees with two departments, a Production department and an Administration
department. The products supplied and the services provided by the company started gaining
popularity over the years. The management had faith in the abilities of the employees and thus they
allowed them freedom of action. The management recognised that the decision-makers at different
levels of the organisation need to be given more autonomy. They took a policy decision that there
will be less control of superiors over subordinates. This increased the role of the subordinates in the
organisation and now they were in a position to take numerous as well as important decisions. As a
result, its business has diversified into many areas. Presently, it has operations throughout the
country with seven branches overseas. Its organisational structure has now changed into divisional
structure and ten thousand people are working with the company. (a) Identify the concept of
management which helped the company to diversify into many areas and branches abroad. (b)
Explain five points of importance of the concept identified in (a) above.(2019)

Ans: Decentralisation

3. Roasted Coffee Corporation is a coffeehouse chain operating in 7 states of India. Through its
effective organisational structure, it has grown despite pressure from competitors in the national
market. The company has a Purchase and Production department, Supply chain management and
logistics department, Brand management department and Sales department. This structure has
facilitated operational efficiency, as employees became specialists within their own realm of
expertise. They could be imparted specialised training as the focus was on limited range of skills.
Identify the organizational structure of Roasted Coffee Corporation. Also state the three 8
advantages of this structure other than those discussed in the above paragraph.(2019)

Ans: Functional Structure

4. Aradhana and 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 be 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(2018)

Ans: Functional

5. Anoop Gaur started 'Cat's Eye', a company for providing cyber security solutions to businesses. Its
objective is to prevent, detect, respond to cyber attacks and protect critical data. He was a
hardworking software engineer and an expert in cyber security. His reputation grew by leaps and
bounds as he was not only a person of integrity but also did his work with utmost honesty and
sincerity. The business started growing day by day. He was delighted when he was offered a big
project by the Ministry of Science and Technology. While working on the project he found that the
volume of work made it impractical for him to handle all the work by himself. Therefore, he decided
to expand the team. The company maintained a close liaison with an engineering college in the
State. During a campus placement, Aarav and Pranshi were appointed to work for the new project.
He found the new employees capable, enthusiastic and trustworthy. Anoop Gaur was thus, able to
focus on the objectives and with the help of Aarav and Pranshi, the project was completed on time.
Not only this, Anoop Gaur was also able to extend his area of operations. On the other hand, Aarav
and Pranshi also got opportunities to develop and exercise initiative. (a) Identify and explain briefly
the concept used by Anoop Gaur in the above case which helped him in focussing on the objectives.
(b) Also, explain any four points of importance of the concept identified in part (a)(2017)

Ans: Delegation

6. 'My Car Ltd.' decided to set-up its new car manufacturing factory in the backward area of West
Bengal where very less job opportunities were available. People of that area welcomed this effort of
'My Car Ltd.' The company also decided to provide facilities like school, hospital, market etc. in the
factory premises so that the people are attracted to join the factory as workers. 'My Car Ltd.' started
earning huge profit. Another competeting company asked its production manager 'Arvind' to
investigate the reasons of earning huge profits by 'My Car Ltd.' Arvind found that in both the
companies there was systematic co-ordination among the various activities to achieve organisational
goals. Every employee knew who was responsible and accountable to whom. The only difference
was that in his organisation communication took place only through the scalar chain, whereas 'My
Car Ltd.' was allowing flow of communication in all the directions as per the requirement which lead
to faster spread of information as well as quick feed-back. (a) Identify the type of organisation which
permits the flow of communication in all the directions in 'My Car Ltd.'. (b) Also state an advantage
of the type of organisation identified in part (a) above. (c) State any two values which 'My Car Ltd.'
wants to communicate to the society.(2016)

Ans: a. informal organisation, b. fulfilment of social needs, C. (i) Fulfilling social responsibility (ii)
Working for benefits of employees
7. Two years ago Mayank obtained degree in food technology. For some time he worked in a
company manufacturing Bread and Biscuits. He was not happy in the company and decided to have
his own Bread and Biscuits manufacturing unit. For this he decided the objectives and the targets
and formulated action plan to achieve the same. One of his objective was to earn 50% profit on the
amount invested in the first year. It was decided that raw materials like flour, sugar, salt etc. will be
purchased on two months credit. He also decided to follow the steps required for marketing the
products through his own outlets. He appointed Harsh as a Production-Manager who decides the
exact manner in which the production activities are to be carried out. Harsh also prepared a
statement showing the requirement of workers in the factory throughout the year. Mayank
informed Harsh about his sales target for different products, areawise for the forth coming quarter.
While working on the production table a penalty of Rs 150 per day was announced for not wearing
the helmet, gloves and apron by the workers. Quoting lines from the above para identify and explain
the different types of plans discussed(2016)

Ans: Objective- "One of her objective was to earn 50 % profit on the amount invested in the first
year"; Policy- "Raw materials like flour, sugar, salt, etc. will be purchased on two months credit";
Procedure- "Decided to follow the steps required for marketing of the products through his own
outlets";Method- "The exact manner in which the production activities are to be carried out".; Rule-
"Penalty of Rs 150 per day for not wearing the helmet, gloves and aprons was announced"; Budget-
"Harsh also prepared a statement showing the number of workers that will be required in the
factory throughout the year".

8. 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. Identify the function of management performed by the Principal in doing so.(2015)

Ans: Organising

9. A company has been registered under the Companies Act with an authorized share capital of
Rs20,000 crores. Its registered office is situated in Delhi and manufacturing unit in a backward
district of Rajasthan. Its marketing department is situated in Bhopal. The company is manufacturing
Fast Moving Consumer Goods (FMCG). (i) Suggest with the help of a diagram a suitable organization
structure for the company. (ii) State any three advantages of this organization structure.(2015)

Ans: Divisional Structure