BUSINESS STUDIES MASTER

Simplifying Foundations of Business & Management for Class XI & XII

Ultimate Master Q&A - Organising

UNIT 5: ORGANISING

ULTIMATE PREDICTIVE MASTER BANK | BOARD + EXPECTED QUESTIONS

3 Marks

Define the term 'Organising' as a function of management.

CBSE 2019
Organising is the process of identifying and grouping the work to be performed, defining and delegating responsibility and authority, and establishing relationships for the purpose of enabling people to work most effectively together in accomplishing objectives.
3 Marks

How does Organising help in 'Adaptation to Change'?

PREDICTIVE 2026
The process of organising allows a business enterprise to accommodate changes in the business environment. It allows the organisation structure to be suitably modified and the revision of inter-relationships amongst managerial levels to pave the way for a smooth transition. It provides stability to the enterprise despite changes.
4 Marks

Explain 'Departmentalisation' and 'Assignment of Duties' as steps in Organising.

CBSE 2021
1. Departmentalisation: Once work is divided into small activities, similar activities are grouped together. This can be done on the basis of functions (Finance, Marketing) or products.

2. Assignment of Duties: Jobs are allocated to members based on their skills and competencies. A balance must be maintained between the nature of a job and the ability of the employee for effective performance.
6 Marks

"Organising is a process by which the manager brings order out of chaos." Justify this by explaining the steps of the process.

CBSE SQP 2024
1. Identification and Division of Work: Dividing total work into manageable activities.
2. Departmentalisation: Grouping similar tasks into departments.
3. Assignment of Duties: Allocating roles to employees based on expertise.
4. Establishing Reporting Relationships: Defining who reports to whom. This creates a clear hierarchy, coordinates efforts, and removes confusion regarding authority, thereby bringing order out of chaos.
3 Marks

State any three disadvantages of a 'Functional Structure'.

PREDICTIVE 2026
1. Functional Empires: Departments may focus only on their own objectives, ignoring organizational goals.
2. Coordination Problems: Information exchange between independent departments is often slow.
3. Conflict of Interest: Conflicts may arise when two or more departments have opposing interests (e.g., Sales wanting low prices vs. Finance wanting high margins).
4 Marks

Explain any four advantages of a 'Divisional Structure'.

CBSE 2022
1. Product Specialization: Helps divisional heads develop varied skills.
2. Accountability: Performance and profits of each division can be easily measured.
3. Flexibility: Decision-making is faster within autonomous units.
4. Expansion: New divisions can be added without disrupting existing ones.
6 Marks

Differentiate between Functional and Divisional Structure on any five bases.

CBSE 2023
1. Formation: Based on functions vs. Based on product lines.
2. Specialization: Functional vs. Product specialization.
3. Responsibility: Difficult to fix vs. Easy to fix on divisions.
4. Managerial Development: Difficult vs. Easier for divisional heads.
5. Cost: Economical (no duplication) vs. Costly (resource duplication).
3 Marks

State any three features of 'Informal Organisation'.

CBSE 2020
1. It originates from within the formal organization due to personal interaction.
2. It has no written rules or fixed logical structure.
3. It does not follow fixed channels of communication (Grapevine).
4 Marks

Compare Formal and Informal Organisation on the basis of: (a) Origin, (b) Flow of Communication, (c) Authority, (d) Leadership.

PREDICTIVE 2026
(a) Origin: Formal arises from company rules; Informal arises from social interaction.
(b) Communication: Follows scalar chain in formal; follows any direction (Grapevine) in informal.
(c) Authority: Formal authority arises by virtue of position; Informal arises from personal qualities.
(d) Leadership: Managers are leaders in formal; Leaders are chosen by the group in informal.
4 Marks

"Authority can be delegated but accountability cannot." Explain.

CBSE 2021
Authority is the right to command. While a manager can share his authority with a subordinate, he remains answerable to his own boss for the final outcome. Accountability is absolute; it cannot be passed on. The delegator remains responsible for the acts of the delegatee.
6 Marks

Explain the importance of 'Delegation' as an essential element of organising.

PREDICTIVE 2026
1. Effective Management: Managers are relieved from routine work to focus on priorities.
2. Employee Development: Subordinates get opportunities to use their skills and gain experience.
3. Motivation of Employees: Granting authority shows trust, boosting morale.
4. Facilitation of Growth: Capable employees are ready to take over new projects.
5. Basis of Management Hierarchy: It defines the superior-subordinate relationship.
6. Better Coordination: Clarity in duties and authority prevents overlapping.
4 Marks

Distinguish between Delegation and Decentralisation on any four bases.

PREDICTIVE 2026
1. Nature: Delegation is a compulsory act; Decentralisation is a policy decision.
2. Scope: Delegation is limited (manager to subordinate); Decentralisation is wide (all levels).
3. Purpose: Delegation reduces manager burden; Decentralisation increases subordinate role.
4. Freedom of Action: More control by delegator in delegation; more freedom to subordinates in decentralisation.
6 Marks

Explain the importance of 'Decentralisation' in an organization.

CBSE SQP 2025
1. Develops initiative among subordinates.
2. Develops managerial talent for the future.
3. Leads to quick decision-making.
4. Relief to top management.
5. Facilitates expansion and growth.
6. Better control through performance evaluation.

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