B U ACADEMY
CLASS 12 - BUSINESS STUDIES
Organising
Time Allowed: 45 minutes Maximum Marks: 15
General Instructions:
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1. Which one of the following is not a part of process of organisation? [1]
a) Doing complete centralisation b) Grouping of activities
c) Defining inter-relationship d) Knowing the objectives of enterprise
2. Grouping of activities in accordance with their nature: [1]
a) division of work b) departmentalization
c) specialization d) decetralization
3. Match the following: [1]
(i) Authority (a) Arises from responsibility
(ii) Decentralisation (b) Arises from a delegation of authority
(iii) Responsibility (c) Arises from a formal position
(iv) Accountability (d) Recognises the need for authority for decision-makers
4. Fill in the blanks: [1]
These organisations in which decision-making authority lies with the top management are
known as ________ organisations.
5. Aradhana and Gandharv are heads of two different department in 'Yumco Ltd'. They are [3]
efficient managers and are able to motivate the employee of their respective department to
improve performance. However, their drive to excel in their own sphere of activity instead of
giving emphasis on objective of the enterprise had hindered the interaction between the
departments that Aradhana and Gandharv are heading. Of then there are interdepartmental
conflicts and they have become incompatible. This has proved to be harmful in the fulfillment
of the organizational objective. 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 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 organizational structure 'Yumco Ltd/ has adopted.
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From the above information identify the organizational structure adopted by 'Yumco', and
state any three advantage of the structure so identified.
6. Alpha Tonics is a progressive company which has achieved new records in the field of [4]
medicines. Recently the company decided to go for a major shift in policy decision by handing
over the decision making authority to the lower most level of employees. For this the company
went for a thorough planning. Within four months the positive results of this major policy
decision was recognizable. The employees felt a lot of development in their skill of taking first
step to manage things on their own. Some major newspapers also covered this development.
The production of the company increased. The company’s top management could now focus
on new areas of innovation as the employees turned more reliable.
One day it so happened that the company’s manufacturing branch in south could not fulfill
even half of its production target and the operations manager was held answerable for the
assigned target. He was called in the office. When he was questioned it was found that his
right to command the workers was insufficient and it should have been more to create results.
The management decided to listen to him and he was given more power. When he went to the
shop floor he told the workers that the standard of behavior of the workers should come from
the official rules and procedures.
In the above case which concept of management has been related to in the first paragraph of
the case?
Which two advantages of this concept have been highlighted in the above case?
7. Read the following text and answer the questions: [4]
Prakash Ltd. is a progressive company which has achieved new records in the field of
electronic products. This was with the help of proper delegation enabled the existence of
proper workforce to take up leading positions in several challenging projects. Because of
proper delegation they have been able to properly define the relationships between superior
and the subordinates at different levels leading the company of a strong management
structure. Also due to delegation there was no overlapping of duties and duplication of efforts
as there is clarity of working relationships. The company has set an example of being
successful for other organisations in the industry. As it is well organised, the productivity of
the company has improved. Specific jobs are done by specific employees resulting in increase
of efficiencies at per person level. Now the company is planning to start working at
international level. But there the environment and working conditions would be different. For
this, a meeting was held by the top management. It was decided that the company will go for a
major change in its policy i.e. they will involve the supervisory level of management in
decision making as the size of the company is growing so it will require more participation
from the employees.
i. "It was with the help of proper delegation enabled the existence of a proper workforce to
take up leading positions in several challenging projects." Identify the importance of
delegation which is reflected through the statement?
a. Basis of management hierarchy
b. Facilitation of growth
c. Better coordination
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d. Employee development
ii. "Specific jobs are done by specific employees resulting in an increase of efficiencies at the
per-person level." Which importance of organising the function of management is
highlighted in this line?
a. Adaptation to change
b. Expansion and growth
c. Development of personnel
d. Benefits of specialisation
iii. ________ involves systematic delegation of authority in all departments and at all levels of
management to take decisions and actions appropriate at respective levels.
a. Decentralisation
b. Accountability
c. Responsibility
d. Departmentalisation
iv. Which type of organisational structure is suitable for a high degree of specialization?
a. Divisional
b. Delegation
c. Functional
d. Decetralisation
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