Organising - Test Papers

CBSE Test Paper - 01

Chapter - 5 Organising

Which organisation resists changes?
1. Formal
2. Informal
3. Functional
4. Both Informal and Formal
In which type of organisation, the principle of the scalar chain is fully followed:
1. Informal organisation
2. Formal organisation
3. Both formal and informal organisation
4. Functional
The span of management refers to:
1. Length of term for which a manager is appointed
2. Number of managers
3. Number of members in top management
4. Number of subordinates under a superior
Authority refers to the right of an individual to command his subordinates and take action:
1. within the scope of his position
2. out of the scope of his position
3. commensurate with his manager
4. to any extent
1. iv and i
2. ii and iii
3. iii and iv
4. only i
Which of the following is not an element of delegation?
1. Informal organization
2. Accountability
3. Responsibility
4. Authority
State whether each of the following statement is True or False:
1. Responsibility is the obligation of a subordinate to perform the assigned duty.
2. The first step of organising function of management is the assignment of duties.
3. The scalar chain is the perfect example of delegation.
4. Division of work follows departmentalisation in the process of organising.
Fill in the blanks with suitable words:
1. ________ form of organisation spreads rumours.
2. Functional heads cannot be managers because they are unable to gather experience in ________ areas.
3. Organizing involves ________ of work into the small task.
4. Organizing is the process of defining and ________ the activities of the enterprise.

Match the following:

(i) Centralisation	(a) Suitable for large scale organisations
(ii) Decentralisation	(b) Suitable for small scale organisations
(iii) Delegation	(c) Flows downward from superior to subordinate
(iv) Authority	(d) Reduce the burden of manager

Ecstatic Ltd. is a well-known company dealing with office furniture. Over the years the business of the company has grown manifolds. It now plans to expand its business and venture into home furniture segment. At present, the company is following the functional structure. Does the company need to modify its organisational structure keeping in view its expansion plan? Why or why not?
If we delegate authority, we multiply it by two; if we decentralise it, we multiply it by many. Name the two concepts to which this statement is related.
Mr. Nischay is the manager of Green Life Ltd. He believes that in order to successfully achieve the objectives of an organisation, all necessary activities are identified and similar activities are then put together in the same department. In this way, production, marketing, finance and human resource departments are created.
Identify and explain the step of organising process under which similar activities are put together and departments are setup.
Roasted Coffee Corporation is a coffeehouse chain operating in seven 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 a limited range of skills.
Identify the organizational structure of Roasted Coffee Corporation. Also, state the three advantages of this structure other than those discussed in the above paragraph.
The production manager asked the foreman to achieve a target production of 200 units per day, but he doesn’t give him the authority to requisition tools and materials from the store's department. Can the production manager blame the foreman if he is not able to achieve the desired target? Give reasons.
Yash has been 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.
Differentiate between Responsibility and Accountability.
Samir Gupta started a 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 for 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.
The directors of Videocon Limited, an organization manufacturing Refrigerators, have asked their production manager to achieve a target production of 120 Refrigerators 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 the store's department. The foreman could not achieve the desired target. Can the director blame the production manager, and can the production manager blame his foreman for not achieving the target? Explain, in brief, the relevant principles relating to this situation in support of your answer.
Explain elements of the delegation of authority.

CBSE Test Paper - 01
Chapter - 5 Organising

Solution

(b) Informal
Explanation: Informal organisation resists changes.
(b) Formal organisation
Explanation: Formal organisation follows the scalar chain.
(d) Number of subordinates under a superior
Explanation: The span of management means how many subordinates can be effectively managed by a manager. It depends upon the capacity and intelligence level of the manager and subordinates, trust in subordinates, and nature of the job.
(d) only i
Explanation: Action to be taken within the scope of his position
(a) Informal organization
Explanation: Elements of the delegation are:
- Responsibility
- Authority
- Accountability
1. True
2. False
3. True
4. False
1. Informal
2. Different
3. Dividing
4. Grouping
(i) - (b), (ii) - (a), (iii) - (d), (iv) - (c)
Yes, the company needs to change or modify its organisational structure keeping in view its expansion plan. It needs to follow a Divisional Structure of Management. Dividing the whole organisation according to the major products to be manufactured by them is known as Divisional Organizational Structure.
1. Delegation of authority
2. Decentralisation
Departmentalisation- The second step in the organising process is to combine/club or group similar or related jobs into larger units called departments, sections or divisions. This grouping process is called departmentalisation.
The organizational structure of Roasted Coffee Corporation is Functional structure. Three more advantages Roasted Coffee Corporation would be experiencing by deploying Functional structure:
1. Occupational specialisation since the emphasis is placed on specific functions.
2. Control and coordination within a department because of the similarity in the tasks being performed.
3. Different functions would be getting due attention.
No, the Production Manager cannot blame the Foreman for the non-accomplishment of the work as he has violated the principle of 'Parity of Authority and Responsibility'. When a subordinate is entrusted with the responsibility of fulfilment of a particular task, then he should be given appropriate authority for the same. However, the responsibility and the accountability for any lapse in achieving the targets on time still lies with the Production Manager.
1. Establishing Reporting Relationships: This step is concerned with establishing the reporting relationship from whom an employee has to receive orders and to whom he is accountable for the performance of the work allocated. The establishment of such clear reporting relationships helps to create a hierarchical structure and helps in coordination amongst various departments.
2. 1. Departmentalisation
  2. Assignment of Duties

BASIS	RESPONSIBILITY	ACCOUNTABILITY
Meaning	Responsibility is the state of having a duty, to do whatever it takes to complete the task.	Accountability is the condition, wherein a person is expected to take ownership of one's actions or decisions.
Delegation	Done but not entirely.	Not possible.
Arises from	Authority	Responsibility
Performance	Not measured	Measured

1. The concept used by Samir Gupta is Decentralisation, which refers to a systematic effort to delegate to the lowest level of all authority. except which be exercised at the central point
2. Decentralization is important due to the following reasons:
  1. Greater motivation Decentralisation improves the morale and motivation of subordinates which is reflected in better work performance.
  2. Develops initiative among subordinates Decentralisation helps to promote self-reliance and confidence amongst the subordinates This is because when lower managerial levels are given the freedom to take their own decisions. They learn to depend on their own judgment. It helps to promote initiative and creativity among them.
  3. Develops managerial talent for the future As a result of decentralization, employees get more opportunities to develop new skills. It makes them better future managers.
In this situation, the Director can definitely blame the Manager as he was the absolute authority for the achievement of the target, but when he delegated the responsibility for achieving the target to the foreman, he did not supplement it with the authority for it. Therefore, in no way, he could now blame the foreman for the non-achievement of the set target. In this case, he violated the principle of 'Parity of Authority and Responsibility' by not delegating the authority with the responsibility. Moreover, under no circumstances, the responsibility can be delegated to the subordinate.
Delegation means sharing of authority by a superior with his subordinate and make him confident to assume the same position in the future.
1. Authority: It refers to the right of an individual to command his subordinates and to take action within the scope of his position.
  1. Authority is needed to discharge a given responsibility to the subordinates. Without authority, it is like a toothless tiger sent for the hunt.
  2. It flows from top to bottom of the scalar chain on the basis of hierarchical job positions.
  3. The superior has authority over the subordinates. It is highest at the top management, However, it reduces as we move downward in the corporate hierarchy.
2. Responsibility: It is the obligation of a subordinate to properly perform the assigned duties.
  1. Responsibility arises from a superior-subordinate relationship because the subordinate is bound to perform the duty assigned to him by his superior. Responsibility is by default, while, the Authority is deliberate in nature.
  2. Responsibility flows upwards, i.e. from bottom to top. A subordinate will always be responsible to his superior based on the principle of Unity of Command.
3. Accountability:
  1. Accountability implies 'being answerable for the final outcome of the assigned task'. Where responsibility ends, the accountability originates.
  2. Accountability flows upwards, i.e. a subordinate will be accountable to his superior for satisfactory performance of the assigned work.