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| organising chapter-5 |
1. Define ‘Organising’?
Answer: Organising is the process of identifying and grouping work. Demonstrate responsibility and authority with the aim of enabling people, define and delegate, and establish relationships. work together most effectively.
2. What are the steps in the process of organising?
Answer: They mainly have four steps to organise a company firm, which are described below:
(i) Identification and Division of Tasks
(ii) Departmentalisation
(iii) Assignment of Duties
(iv) Establishing Reporting Relationships
(i) Identification and Division of Work: The first step in planning is to identify the work that the target can cultivate and divide the portion that is the same process to manufacture. It helps in dividing the work among the employee of the firm.
(ii) Departmentalisation: In this stage the firm's work is divided into many smaller parts and a single process is traced, and all the functions are grouped, it depends on many different factors such as functions, Product manufacturing, field etc.
(iii)Assignment of Duties: For better work result in a business firm it is necessary to assign duties to the employee of the firm. If the firm is very small then it is not very important but for a large firm or company assignment of duties is required without it the day to day performance of the firm is decreasing.
(iv) Establish reporting relationship: After the assignment of duties, the next step is to establish reporting relationship between the manager and workers of the department or in other words it means that the interrelationships between the different positions are clearly defined so that every One can know from whom to take orders and to whom he can issue orders.
3. Discuss the elements of delegation.
Answer: There are three types of elements of delegation. they are
(i) Authority: Authority means the power to give orders to the workers and help them to do the work smoothly. Delegation refers to the downward transfer of authority from a superior to a subordinate. Delegation helps a manager to expand his area of operation because without it, his activities will be limited only to what he can do himself.
(ii) Responsibility: Responsibility is the responsibility of a subordinate to properly perform the assigned duty. He is always responsible towards his superior.
(iii) Accountability: Accountability cannot be delegated and flows upward, i.e., a subordinate will be accountable to a superior for satisfactory performance of the task.
4. Under what circumstance would functional structure proves to be an appropriate choice?
Answer: The two circumstances under which the functional structure will be an appropriate choice are:
- (i) When the Size of the organisation is large.
- (ii) When Operations require a high degree of specialisation.
5. Draw a diagram depicting a functional structure.
Answer:
6. Can a large sized organisation be totally centralised of decentralised? Give your opinion.
Answer: No, a sizeable organisation cannot be completely centralised and decentralised. With its increased size and complexity, there is a tendency towards decentralised decision making. An organisation is centralised when decision-making authority is maintained by higher management levels, whereas it is decentralised when such authority is delegated. Some important departments like finance, establishment of overall objectives, policies etc. may be centralised but routine decisions like buying raw materials, inputs etc. can be decentralised.
7. Decentralisation is extending delegation to the lowest level. Comment.
Answer: Decentralisation means extending the delegation to the lowest level because decentralisation means the activities of an organisation, especially with regard to planning and decision making, are distributed or delegated away from a central, official location or group, of the firm. Decentralisation is working at the lowest level. Decision making authority is pushed down the chain of command. Delegation is the process and decentralisation is the end result.
Long answer questions
1.Why delegation is considered essential for effective organising?
Answer: Delegation is considered essential for effective organising as the following factors are mentioned below:
(i) Effective Management: Empowering employees, managers are able to function more effectively and have their time to focus on important matters. It helps the top level manager of the firm to continuously work their way to a new project.
(ii) Employee Motivation: By giving them power they feel happy and want to give their best performance to the business firm efficiently. It helps in the progress of the worker as well as the firm.
(iii) Development of Employee: By delegation, employees get more opportunities to show their talent in their work. This enables them to develop new skills and perform more difficult and complex tasks. This makes them better leaders and decision makers and gain more experience, and with this task they can increase their position and their salary as well.
(iv) Better Coordination: Elements of Delegation: Authority, Responsibility, Accountability helps to define the powers, duties and accountability related to different positions in the organisation.
2.What is a divisional structure? Discuss its advantages and limitations.
Answer: Divisional structure is a type of organisational structure that groups each organisational function into a division. The head of each division looks after all the functions related to his product, such as buying, selling, advertising, production, finance, etc. It helps in the development of various skills in a divisional head. Divisional heads are accountable for profits, such that revenue and costs relating to different departments can be easily identified and assigned. It provides a proper basis for performance measurement.
3. Decentralisation is an optional policy. Explain why an organisation would choose to be decentralised.
Answer: An organisation would choose to be decentralised because of following advantanges:
(i) Quick Decision making
(ii) Develops Initiative among Subordinates
(iii) Relief for Top Management
4. How does informal organisation support the formal organisation?
Answer: Informal organisations support formal organisations in several ways, these are described below:
(i) Fast Communication: The prescribed lines of communication are not followed. For this reason, informal organisation leads to rapid dissemination of information as well as quick response.
(ii) Fulfilling Social Needs: It helps in meeting the social needs of the members and allows them to find like-minded people. It increases their job satisfaction, as it gives them a sense of belonging in the organisation.
(iii) Use of Organisational Objectives: It contributes to the achievement of organisational objectives by compensating for the inadequacies in the formal organisation e.g., feedback on new policies etc. can be tested through informal networks.
5. Distinguish between centralisation and decentralisation.
Answer: In any organisation, its business is run in two ways, these are centralisation and decentralisation. In centralisation, there is a formal authority to make all important decisions for the organisation, and in decentralisation the decision-making is left to the lower level of the organisation.
The difference between centralisation and decentralisation discuss below:
| Basic | Centralisation | Decentralisation |
|---|---|---|
| Meaning | The retention of powers and authority with the top management regarding planning and decisions is known as centralisation. | The spread of authority, responsibility and accountability at various management levels is known as decentralisation. |
| Involves | Systematic and consistent reservation of rights. | Systematic dissemination of authority. |
| Communication Flow | Vertical | Open and Free |
| Decision Making | Slow | faster |
| Advantage | Proper coordination and Leadership | Sharing of responsibility |
| Power of decision making | Lies with the top management. | Many individuals have decision making power. |
1. Identify the network of social relationships which arises spontaneously due to interaction at work.
(II) Requirement of Specialisation
4. company has its 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?
Answer: The Company Should follow the functional organisation stature to achieve its target.
5. Neha runs a factory wherein she manufactures shoes. The business has been doing well and she intends to expand by diversifying into leather bags as well as western formal wear thereby making her company a complete provider of corporate wear. This will enable her to market her business unit as the one stop for working women. Which type of structure would you recommend for her expanded organisation and why? Importance of delegation is that it helps in effective management, employee development, motivation, growth and coordination. Decentralisation is delegation of authority throughout the organisation.
Answer: The departmental structure is perfect for Neha. This stature helps him to find different values of profit amount of different factory, and this structure helps him to buy raw material by paying different wages to the workers of his different factories.
Answer: No, the production manager cannot blame the foreman if he is not able to achieve the desired goal, as the manager gives the foreman only the responsibility and not the authority. In a business firm any manager gives as much responsibility as is necessary to any employee to give him his share of authority as well as power for that particular job.