Organising Business Studies - Organising

Which of the following is a disadvantage of functional structure?

Which of the following is not an advantage of functional organisational structure?

Which of the following is/ are the importance of organising?

National Vritech Ltd. has grown in size. It was a market leader but with changes in business environment and with the entry of MNCs, its market share is declining. To cope up with the situation, the CEO starts delegating some of his authority to the General Manager, who also felt himself overburdened and with the approval of CEO disperses some of his authority to various levels throughout the organisation. Identify the concept of management discussed above.

Sika Ltd., a reputed industrial machines manufacturer, needs Rupees twenty crores as additional capital to expand the business. Mr. Amit Joshi, the Chief Executive Officer (CEO) of the company wants to raise funds through equity. The Finance Manager, Mr. Narinder Singh, suggested that the shares may be sold to investing public through intermediaries, as the same will be less expensive.
Name the method through which the company decided to raise additional capital.

Give the meaning of ‘Decentralisation.’

Give the meaning of ‘Responsibility’ as an element of delegation.

Give the meaning of ‘Delegation’.

Rajeev, the owner of Pathways Constructions, decided to start a campaign to create awareness among people for developing clean surroundings in their area. He formed a team of 10 members to list the different ways for cleaning the surroundings. One suggested to take the help of local residents, another suggested that they may involve school-going children in their venture. One more suggestion was to take the help of the unemployed youth. On evaluation of different ways, it was decided to take the help of local residents. To achieve the desired goal, various activities are identified like

• Purchase of necessary items like dustbins, garbage bags, brooms, etc.
• Collection of garbage;
• Disposal of garbage, etc.

After identification of different activities, the work was allocated to different members.

1. Identify the concepts of management involved in the above situation and quote the lines which help in their identification.
2. Also identify the values which the company wants to communicate to society.

“Shan Spices Ltd.” are 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 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 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 ?
4. State two values violated by Mr. Raghav.

Ramdas, aged 49 is working in an aviation company. He is the senior most employee in his division. He is even senior to the division manager, Kanaputti. Ramdas is considered one of the most committed, capable and hard-working employees. As a result of his abilities and seniority, he generally received the work assignments of his choice. Although there was no formal designation of various „special’ projects assigned to Ramdas, he handled them as a matter of routine. A problem developed when an able and intelligent person Nagarjuna, aged 33, was appointed by Kanaputti. Nagarjun’s previous three years’ experience in the closely related work, made it possible for him to catch on to the routine work of his new job more rapidly than was customary for a new employee. On several occasions, Kanaputti noticed the tension developing between the two employees. However, he didn’t want to get involved in their personal issues as long as the work was completed effectively and efficiently by them. One day, the tension between them reached the boiling point and Ramdas complained to
Kanaputti stating that his duties were being largely taken over by Nagarjun. Kanaputti issued the order stating the clear allocation of the jobs and related duties between the two. He further clarified the working relationship between them by specifying who was to report to whom. This helped in reducing the workload, enhancing productivity and removing ambiguity.

1. Identify and state the step of organizing process which has not been carried out properly and contributed to this problem.
2. State the two steps of the organizing process which have been taken by Kanaputti to respond to the complaint of Ramdas.
3. Also state two points of importance of organizing as reflected in the above case.

Kiran Industries is a 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

A company is manufacturing washing machines. There is a well-defined system of jobs with a clear and definite authority, responsibility and accountability in the company. But people are not allowed to interact beyond their officially defined roles. As a result, the company is not able to adapt to the changing business environment. The workforce is also not motivated due to lack of social interaction. The company is facing problems of procedural delays and inadequate recognition of creative talents.

1. Suggest how the organisation can overcome the problems faced by it.
2. Give any two benefits it will derive from your suggestions.

Shreyskar runs a locks manufacturing factory. He wants to expand his business. For expansion, he contemplates to enter into the manufacturing of locks for cars as an ancillary company. By doing this, his company will be able to provide many tory and why? State any five advantages of this organisational Structure.

"Organisation is the harmonious adjustment of specialised parts for the accomplishment of some common purpose or purposes". In the light of this statement explain any four points of importance of organising.

State any two advantages and two limitations of informal organisation.

Aman, Avneesh and Amrish have decided to start a business of manufacturing toys. They identified the following main activities which they have to perform:

1. Purchase of raw materials.
2. Purchase of machinery.
3. Production of toys.
4. Arrangement of finance.
5. Sale of toys.
6. Identifying the areas where they can sell their toys.
7. Selection of employees.

In order to facilitate the work, they thought that four managers should be appointed to look after (1) Production, (2) Finance, (3) Marketing, (4) Personnel.

1. Identify the function of management involved in the above mentioned para.
2. Quote, the lines from the above para which help you in identifying this function.
3. State the steps followed in the process of this function of management.

Distinguish between 'Formal' and 'Informal' organisation.

Give the meaning of ‘divisional structure’ of organizing. State its any four advantages.

Explain the concept of ‘Functional Structure’ of an organization. Also, explain any four disadvantages of functional structure.

With the help of any four points, explain the crucial role that organizing plays in an enterprise.

What is meant by ‘Delegation’? State any four points which highlight the importance of delegation in an organisation.

‘Organizing involves a series of steps in order to achieve the desired goals.’ Explain these steps.

_______ refers to that specific pattern of relationship created during organising process.

________ is the division of decision-making and responsibilities among hierarchical level.

________ specifies clearly the boundaries of authority and responsibility of its members.

In _______ activities are grouped and departments are created on the basis of specific functions to be performed

_______ means granting of authority to subordinates to operate within the

A manager should eliminate informal organisation for the best interest of the organisation.

Delegation of authority helps in employee development.

Formal organisation is a structure created by management defining authority and responsibilities of every person.

Functional structure is suitable for those business enterprises in which large variety of products are manufactured using different productive resources. (True/ False)

Delegation of authority helps in employee development.