CLASS XII: CHAPTER 5 QUESTION BANK
Organizing | 10 Practice Sets (CBSE 2026-27)
📌 General Instructions for All Sets:
- Maximum Marks: 25 | Time Allowed: 45 Minutes
- Questions 1-5 are objective type carrying 1 mark each (MCQs & Assertion-Reasoning).
- Questions 6-7 are short answer type carrying 3 marks each (30-40 words).
- Questions 8-9 are short answer type carrying 4 marks each (50-80 words).
- Question 10 is a long answer type carrying 6 marks (100-150 words).
- Strictly adhere to the CBSE Competency/Case-Based format.
📄 PRACTICE PAPER - SET 1 (Level: Easy - Fundamental Concepts)
SECTION A (1 Mark Each)
1. The first step in the process of organizing is:
[Case-Based] A company groups all activities related to production under one department, marketing under another, and finance under a third.
2. This structure is known as:[Case-Based] The right to command subordinates and take decisions within the scope of a manager's position is called:
3.
4. Assertion (A): Accountability can be delegated.
Reason (R): A manager remains answerable for the final outcome of the assigned task, even after delegating authority to a subordinate.
Reason (R): A manager remains answerable for the final outcome of the assigned task, even after delegating authority to a subordinate.
5. Assertion (A): The span of management determines the organizational structure.
Reason (R): Span of management refers to the number of subordinates that can be effectively managed by a superior.
Reason (R): Span of management refers to the number of subordinates that can be effectively managed by a superior.
SECTION B (3 Marks Each)
6. Explain how organizing provides 'clarity in working relationships' and 'optimum utilization of resources'.
[Case-Based] 'Star Industries' manufactures only one product: Leather Shoes. The CEO wants to create a structure that promotes occupational specialization.
7. Identify the most suitable organizational structure for 'Star Industries' and state any two of its advantages.
SECTION C (4 Marks Each)
8. Explain the four steps involved in the process of organizing.
[Case-Based] Mr. X assigned the task of analyzing sales data to his subordinate, Mr. Y. He also granted Mr. Y access to the highly confidential financial server to complete the task. However, the data analysis had errors.
9. Identify and explain the three elements of delegation present in this scenario. Who is finally answerable for the errors?
SECTION D (6 Marks Each)
[Case-Based] 'MegaBrands Ltd.' initially started as a small cosmetics manufacturer. Over the years, it grew massively and added three new lines of business: Garments, Footwear, and Skincare. The CEO noticed that the functional heads were becoming overburdened, and it was impossible to calculate the exact profit generated by the Footwear division because the accounts and marketing teams were mixed for all products. To fix this, the CEO decided to restructure the company.
10. Which organizational structure should the CEO adopt? Explain any five advantages of adopting this new structure.
📄 PRACTICE PAPER - SET 2 (Level: Moderate - Application & Analysis)
SECTION A (1 Mark Each)
1. The downward transfer of authority from a superior to a subordinate is called:
[Case-Based] An enterprise is organized into distinct departments like 'Plastics', 'Chemicals', and 'Metals', each headed by a General Manager.
2. This represents a:[Case-Based] The CEO pushes decision-making authority down to the lowest possible level in the hierarchy, retaining only major strategic decisions.
3. This philosophy is known as:4. Assertion (A): Delegation implies abdication.
Reason (R): Once a manager delegates authority, he is completely free from the responsibility and cannot be held accountable.
Reason (R): Once a manager delegates authority, he is completely free from the responsibility and cannot be held accountable.
5. Assertion (A): Divisional structure is costly.
Reason (R): Each product division has to maintain its own separate functional departments (like HR, Finance, Marketing), leading to duplication of resources.
Reason (R): Each product division has to maintain its own separate functional departments (like HR, Finance, Marketing), leading to duplication of resources.
SECTION B (3 Marks Each)
6. Differentiate between 'Authority' and 'Responsibility' on the basis of: (a) Meaning, (b) Origin, and (c) Flow.
[Case-Based] 'QuickBite Foods' is expanding its chain of restaurants nationally. The Managing Director realizes he cannot manage all branches from the head office. He appoints Branch Managers in every city and gives them complete power to hire staff, decide the local menu, and spend up to ₹5 Lakhs without his permission.
7. Identify the concept of management used by the MD. State two of its points of importance.
SECTION C (4 Marks Each)
8. Explain the term 'Functional Structure'. State any three of its limitations.
[Case-Based] 'Alpha Electronics' was suffering from a major bottleneck. The CEO insisted on approving every single leave application and stationary purchase. This delayed operations and left him with no time to plan for the future.
9. Which concept of management is missing here? Explain three points highlighting the importance of introducing this concept.
SECTION D (6 Marks Each)
[Case-Based] Mr. Anil decided to start a company manufacturing eco-friendly water bottles. First, he listed all the activities required: purchasing raw materials, operating machines, advertising, and keeping accounts. Second, he grouped the purchasing and operating machines under a 'Production Department' and advertising under a 'Marketing Department'. Third, he hired managers for each department and told them exactly what their jobs were. Finally, he clearly told the Marketing Manager that he must report directly to the CEO every Friday.
10. By quoting lines from the text, identify and explain the **four steps** of the organizing process performed by Mr. Anil.
📄 PRACTICE PAPER - SET 3 (Level: Moderate-High - Nuanced Competency)
SECTION A (1 Mark Each)
1. The concept that determines the number of levels of management in an organization is:
[Case-Based] Which element of delegation flows exclusively upwards from a subordinate to a superior?
2.
[Case-Based] A company wants to maintain strict control over its single line of product and ensure high occupational specialization.
3. Which structure should it adopt?4. Assertion (A): Decentralization is a conscious policy decision taken by top management.
Reason (R): It requires a deliberate effort to systematically distribute authority at all levels of management.
Reason (R): It requires a deliberate effort to systematically distribute authority at all levels of management.
5. Assertion (A): Responsibility is derived from authority.
Reason (R): When a superior grants authority to a subordinate, the subordinate automatically becomes responsible for performing the assigned task.
Reason (R): When a superior grants authority to a subordinate, the subordinate automatically becomes responsible for performing the assigned task.
SECTION B (3 Marks Each)
6. "Accountability cannot be delegated." Explain this statement with a brief example.
[Case-Based] By giving his subordinates the power to handle routine customer complaints, the Sales Head of 'TechMart' got enough time to formulate a strategy to enter the European market.
7. Identify the concept of management used by the Sales Head. State any two points of its importance.
SECTION C (4 Marks Each)
8. Differentiate between 'Functional Structure' and 'Divisional Structure' on the basis of: (a) Formation, (b) Specialization, (c) Responsibility, and (d) Cost.
[Case-Based] During a massive factory fire, the floor supervisor waited for 30 minutes to get the "official permission" from the CEO to trigger the sprinkler system, leading to heavy losses. The CEO had retained all decision-making powers.
9. Which concept was missing in the organization? Explain how the presence of this concept facilitates 'Quick decision making' and 'Relief to top management'.
SECTION D (6 Marks Each)
[Case-Based] 'PureVeda' was highly successful in manufacturing Ayurvedic soaps. They had a single Production Head and a single Marketing Head. To capitalize on their brand name, they launched two new massive product lines: Herbal Teas and Ayurvedic Medicines. Suddenly, chaos erupted. The Marketing Head couldn't create different ad campaigns for soaps, teas, and medicines simultaneously. The CEO could not fix accountability because if profits fell, the Marketing Head blamed the Production Head, and vice versa.
10. Which organizational structure was 'PureVeda' using initially? Which structure should they shift to now? Explain any **four advantages** of shifting to the new structure.
📄 PRACTICE PAPER - SET 4 (Level: Hard - Analytical Competency)
SECTION A (1 Mark Each)
1. Which of the following statements is true?
[Case-Based] In a company, the Production Department only cares about reducing manufacturing costs, completely ignoring the Marketing Department's request for better packaging.
2. This inter-departmental conflict is a typical disadvantage of:[Case-Based] A policy decision to systematically grant greater autonomy to lower levels of management is called:
3.
4. Assertion (A): Under functional structure, it is difficult to hold a specific department accountable if the company's overall profit falls.
Reason (R): All departments (production, marketing, finance) are involved in creating the final product, making it easy to shift blame.
Reason (R): All departments (production, marketing, finance) are involved in creating the final product, making it easy to shift blame.
5. Assertion (A): Authority flows downwards, while accountability flows upwards.
Reason (R): Authority is granted by a superior to a subordinate, but the subordinate remains answerable to the superior for the task.
Reason (R): Authority is granted by a superior to a subordinate, but the subordinate remains answerable to the superior for the task.
SECTION B (3 Marks Each)
6. Explain how 'Delegation' leads to the 'Development of employees' and 'Better coordination'.
[Case-Based] 'OmniCorp' has three massive, distinct businesses: Omni Airlines, Omni Hotels, and Omni Software. Each business operates independently as a profit center.
7. Identify the organizational structure of OmniCorp. State two situations where this structure is suitable.
SECTION C (4 Marks Each)
8. Distinguish between 'Delegation' and 'Decentralization' on the basis of: (a) Nature (Compulsory vs Optional), (b) Purpose, (c) Freedom of action, and (d) Scope.
[Case-Based] The manager told a new employee what his job was and handed him a document stating his daily targets. He also clearly told him that he must submit a weekly report to the 'Senior Floor Supervisor'.
9. Identify and explain the two specific steps of the organizing process highlighted in the case above.
SECTION D (6 Marks Each)
[Case-Based] 'SteelStrong Ltd.' is a single-product company manufacturing steel pipes. They have organized their enterprise on the basis of major functions like HR, Production, and Sales. The CEO believes this is the most economical structure. However, he is facing two major problems. First, the HR head and Production head are constantly fighting, acting as if their departments are separate companies. Second, training employees to become future general managers is proving impossible because the production staff only knows about production and nothing about sales or finance.
10. Identify the organizational structure adopted by 'SteelStrong Ltd.' Explain **two advantages** (which made the CEO choose it) and **two disadvantages** (the problems the CEO is facing) of this structure.
📄 PRACTICE PAPER - SET 5 (Level: Advanced - Evaluation Competency)
SECTION A (1 Mark Each)
[Case-Based] The step in organizing that clarifies who has to take orders from whom creates a:
1.
2. Which of the following highlights the principle that 'Delegation does not mean abdication'?
[Case-Based] A company retains the power to set the annual budget at the headquarters but allows branch managers to decide how to spend their allocated marketing budget locally.
3. This shows a balance between:4. Assertion (A): Under divisional structure, divisional heads are responsible for profits.
Reason (R): Each division operates as a separate profit center and its performance can be easily evaluated against its revenues and costs.
Reason (R): Each division operates as a separate profit center and its performance can be easily evaluated against its revenues and costs.
5. Assertion (A): Organizing leads to the optimum utilization of resources.
Reason (R): By clearly describing jobs and assigning duties, organizing prevents overlapping and duplication of work.
Reason (R): By clearly describing jobs and assigning duties, organizing prevents overlapping and duplication of work.
SECTION B (3 Marks Each)
6. "Centralization and Decentralization are relative terms." Explain this statement.
[Case-Based] During a severe economic recession, 'TechBuild' was able to easily merge two of its departments and redefine employee roles without causing chaos because its organizational structure was clear and well-documented.
7. Identify and explain the point of importance of organizing highlighted here.
SECTION C (4 Marks Each)
8. Explain any four points highlighting the 'Importance of Delegation'.
[Case-Based] Mr. Gupta is a highly capable manager, but he tries to manage 50 subordinates directly. Due to this, his subordinates are frustrated as they rarely get his attention, and work is constantly delayed.
9. Identify the concept of management Mr. Gupta is ignoring. Explain how this concept affects the organizational structure.
SECTION D (6 Marks Each)
[Case-Based] 'FutureRetail' operates 200 supermarkets across the country. Initially, the Head Office made all decisions, even regarding what brand of milk to stock in specific cities, causing severe delays and loss of local customers. The Board decided to completely change this policy. They empowered local store managers with the authority to choose inventory based on local tastes, hire local staff, and run independent promotional campaigns. This dramatically increased sales. The local managers felt highly motivated, acting like entrepreneurs, and the Head Office directors finally had time to focus on acquiring a rival company.
10. Identify the management philosophy adopted by the Board. By quoting lines from the text, explain **four points of importance** of this philosophy.
📄 PRACTICE PAPER - SET 6 (Level: Expert - Complex Case Studies)
SECTION A (1 Mark Each)
[Case-Based] A manager assigns a task to his subordinate. The subordinate assigns a part of it to his junior. If the junior makes a mistake, who is answerable to the manager?
1.
2. Which of the following promotes "product specialization"?
[Case-Based] When a company grows and needs to add more management levels, the organizational structure becomes:
3.
4. Assertion (A): Under functional structure, coordination becomes difficult if the company grows very large.
Reason (R): Information has to pass through multiple functional heads, and each department may become a rigid "empire" prioritizing its own goals over company goals.
Reason (R): Information has to pass through multiple functional heads, and each department may become a rigid "empire" prioritizing its own goals over company goals.
5. Assertion (A): Decentralization develops initiative among subordinates.
Reason (R): When lower-level managers are given freedom to take their own decisions, they learn to depend on their own judgment rather than constantly asking superiors.
Reason (R): When lower-level managers are given freedom to take their own decisions, they learn to depend on their own judgment rather than constantly asking superiors.
SECTION B (3 Marks Each)
6. Why is a divisional structure considered more suitable for a multi-product company operating in multiple locations? Give three reasons.
[Case-Based] A CEO delegates the task of signing routine cheques to the Finance Manager, but explicitly tells him, "You cannot sanction a loan above ₹1 Lakh."
7. Which element of delegation sets this limit? Explain it briefly.
SECTION C (4 Marks Each)
8. Explain the first two steps of the Organizing process in detail.
[Case-Based] 'BrightMinds School' has expanded massively. The Principal is overwhelmed with work. She decides to appoint a 'Vice Principal of Academics' and a 'Vice Principal of Administration', transferring some of her specific powers to them so she can focus on school strategy.
9. Identify the concept used by the Principal. Explain any three of its benefits.
SECTION D (6 Marks Each)
[Case-Based] 'Classic Wheels' was a successful bicycle manufacturer using a Functional Structure with highly centralized decision-making. Over five years, they expanded into manufacturing E-Bikes and Heavy Motorcycles. The centralized functional structure began to fail. Decision-making became paralyzingly slow. The HR department couldn't hire specialist engineers for motorcycles because they were using the same hiring process meant for basic bicycles. Profitability dropped because the CEO couldn't figure out which of the three vehicle lines was losing money. Finally, the Board ordered a complete restructuring of the company.
10. Suggest the new organizational structure the Board should adopt. Explain how this new structure will specifically solve the **three problems** mentioned in the case.
📄 PRACTICE PAPER - SET 7 (Level: Expert - Integrated Concepts)
SECTION A (1 Mark Each)
[Case-Based] Planning decides "what to do." Which function of management decides "who will do it and where it will be done"?
1.
2. Which of the following requires the creation of multiple 'Profit Centers'?
3. Assertion (A): Delegation is a prerequisite for a smooth functioning enterprise.
Reason (R): No single manager can perform all tasks himself due to physical and mental limitations.
Reason (R): No single manager can perform all tasks himself due to physical and mental limitations.
4. Assertion (A): Decentralization relieves top management from operational details.
Reason (R): It transfers the authority for day-to-day decision-making to lower levels, leaving top management free to focus on strategic growth.
Reason (R): It transfers the authority for day-to-day decision-making to lower levels, leaving top management free to focus on strategic growth.
5. Which element of delegation arises from a superior-subordinate relationship?
SECTION B (3 Marks Each)
6. Differentiate between 'Accountability' and 'Responsibility'.
[Case-Based] A manager delegates the task of organizing a seminar to his assistant but refuses to give him the authority to spend the budget. The seminar fails.
7. What principle of delegation was violated? Explain.
SECTION C (4 Marks Each)
8. Explain any four points highlighting the importance of 'Organizing'.
[Case-Based] The Board of Directors passed a resolution to systematically distribute decision-making powers to the heads of all regional offices to make the company more responsive to local markets.
9. Identify the concept. How is it different from Delegation? (Give 3 points of difference).
SECTION D (6 Marks Each)
[Case-Based] Mr. David started a courier company. He first identified that the main tasks were collecting parcels, sorting them, driving delivery trucks, and billing. Realizing that one person driving the truck shouldn't also do the billing, he grouped collection and driving under 'Logistics', and billing under 'Finance'. He hired Mr. Ali to head Logistics and clearly told him, "You are responsible for zero late deliveries." Finally, he established a rule that the Logistics head must submit a daily performance report to the CEO.
10. By quoting lines from the text, identify and explain the **four steps of the organizing process** performed by Mr. David.
📄 PRACTICE PAPER - SET 8 (Level: Advanced Board Mock 1)
SECTION A (1 Mark Each)
1. Which of the following is NOT an element of delegation?
[Case-Based] A structure formed by grouping jobs of similar nature under one department is called:
2.
3. Assertion (A): Decentralization evaluates performance at each level.
Reason (R): Because departments are given independence, they can be held strictly accountable for their specific results and profit generation.
Reason (R): Because departments are given independence, they can be held strictly accountable for their specific results and profit generation.
4. Assertion (A): Authority can be entirely delegated to subordinates.
Reason (R): A manager can transfer 100% of his authority to a subordinate and completely detach himself from the task.
Reason (R): A manager can transfer 100% of his authority to a subordinate and completely detach himself from the task.
5. The obligation of a subordinate to properly perform the assigned duty is known as:
SECTION B (3 Marks Each)
6. State the importance of 'Departmentalization' as a step in the organizing process.
[Case-Based] A cosmetic company has separate departments for manufacturing lipsticks, nail polishes, and creams. However, all products are manufactured in the same factory using shared chemical engineers.
7. Identify the structure. State two of its limitations.
SECTION C (4 Marks Each)
8. Explain how 'Decentralization' facilitates 'Growth' and 'Better control' in an organization.
9. Distinguish between Functional and Divisional structure on the basis of: (a) Managerial development, (b) Coordination, (c) Focus, and (d) Suitability.
SECTION D (6 Marks Each)
[Case-Based] The CEO of 'AeroTech', an aviation parts supplier, was hospitalized due to severe stress. He insisted on approving every purchase order, signing every employee leave application, and negotiating with every minor vendor. Because everything was bottlenecked at his desk, the company missed critical delivery deadlines. When the new acting CEO took over, her first move was to trust her subordinates. She assigned specific procurement duties to the Purchase Manager and gave him the power to sign deals up to ₹50 Lakhs without asking her. She clearly told him he would be answerable for the quality of the parts. Within a month, operations became smooth, and the acting CEO had time to secure a new international contract.
10. Identify the management concept applied by the acting CEO. Explain the **three elements** of this concept and state **two points of its importance** highlighted in the case.
📄 PRACTICE PAPER - SET 9 (Level: Advanced Board Mock 2)
SECTION A (1 Mark Each)
[Case-Based] Grouping activities on the basis of products lines, like 'Electronics' and 'Apparel', is a feature of:
1.
2. Which of the following is an advantage of a Functional Structure?
3. Assertion (A): An organization can be completely decentralized.
Reason (R): Complete decentralization would mean the top management transfers all authority, leading to the dissolution of the top management itself, which is impossible.
Reason (R): Complete decentralization would mean the top management transfers all authority, leading to the dissolution of the top management itself, which is impossible.
4. Assertion (A): Organizing establishes a working relationship.
Reason (R): It defines who will report to whom, thus creating a management hierarchy and facilitating communication.
Reason (R): It defines who will report to whom, thus creating a management hierarchy and facilitating communication.
5. Authority refers to:
SECTION B (3 Marks Each)
6. "A manager is responsible for the acts of his subordinates." Explain this with reference to the concept of Accountability.
[Case-Based] 'FashionHouse' has separate departments for Men's Wear, Women's Wear, and Kids' Wear. Each department is self-sufficient with its own HR, Finance, and Production teams.
7. Identify the structure. State two of its advantages.
SECTION C (4 Marks Each)
8. Explain how 'Decentralization' develops managerial talent for the future.
[Case-Based] The production manager of a factory noticed that identical machines were placed in three different rooms randomly, causing workers to waste time walking between them. He reorganized the factory floor, bringing all similar machines into one central zone.
9. Identify and explain the point of importance of organizing highlighted here. State one more point of importance of organizing.
SECTION D (6 Marks Each)
[Case-Based] 'AlphaCorp' is a massive multinational dealing in diverse products like Pharmaceuticals, IT Solutions, and Processed Foods. The company is structured divisionally. The CEO, sitting in the USA, used to approve every single regional marketing budget for India, causing massive delays. Realizing the Indian market needed quick, localized decisions, the CEO consciously passed down the financial decision-making authority to the Managing Director of India. The MD of India further passed down localized ad-spend authority to the City Managers in Delhi, Mumbai, and Bangalore. Now, the local managers react instantly to competitor pricing without waiting for USA approvals.
10. Identify the management policy implemented by the CEO. Explain **five points of its importance** highlighting why it was necessary for 'AlphaCorp'.
📄 PRACTICE PAPER - SET 10 (Level: Ultimate Board Challenger)
SECTION A (1 Mark Each)
1. Which concept is considered an extension of delegation?
[Case-Based] A manager transfers a specific task to his subordinate for a single project. This is an example of:
2.
3. Assertion (A): Under functional structure, employees develop a broader perspective of the entire organization.
Reason (R): Functional managers focus exclusively on their specific department (like HR or Finance) and often ignore the overall organizational goals.
Reason (R): Functional managers focus exclusively on their specific department (like HR or Finance) and often ignore the overall organizational goals.
4. Assertion (A): Accountability flows upwards.
Reason (R): A subordinate will always be accountable to the superior who delegated the authority to him.
Reason (R): A subordinate will always be accountable to the superior who delegated the authority to him.
5. In the organizing process, creating specific job positions and handing over offer letters to employees is a part of:
SECTION B (3 Marks Each)
6. Differentiate between 'Delegation' and 'Decentralization' on the basis of scope and purpose.
[Case-Based] A startup company has grown from 10 employees to 100 employees. The founder wants to ensure that all tasks are performed systematically without duplication of effort.
7. Which function of management should the founder perform? Explain its first two steps.
SECTION C (4 Marks Each)
8. Explain how organizing 'facilitates growth and expansion' and helps in the 'development of personnel'.
9. "Divisional structure is suitable for enterprises producing a single product." Defend or refute this statement with four valid reasons.
SECTION D (6 Marks Each)
[Case-Based] 'RapidMotors' manufactured basic economy cars using a highly successful Functional Structure. Encouraged by their profits, they launched a line of luxury yachts and a line of heavy commercial trucks. They tried managing these new lines under their old Functional Structure. The results were disastrous. The Marketing Head of Cars had no idea how to sell Luxury Yachts to billionaires. The Production Head mixed up the raw material orders, causing truck axles to be delivered to the yacht shipyard. The CEO was constantly fielding complaints between departments, and overall profitability crashed. Finally, the Board intervened and ordered a complete shift in structure.
10. Identify the new structure the Board should adopt. Explain how this new structure will specifically solve the chaos at 'RapidMotors' by providing **five** of its advantages.
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