Organising Class 12 Notes CBSE Business Studies Chapter 5 (Free PDF Download)

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Organising Class 12 Notes CBSE Business Studies Chapter 5 (Free PDF Download), organising notes class 12 pdf, organising class 12 notes pdf topper learning, Revision Notes for CBSE Class 12 Business Studies Chapter 5 – Free PDF Download

Organising Class 12 Notes CBSE Business Studies Chapter 5 (Free PDF Download)

Class12th 
Chapter No04
ProvidingNcert solutions
Chapter NamePlanning
BoardCBSE
Book NCERT
SubjectBusiness studies
Medium English
Study MaterialsFree VVI Study Materials are Available
Download PDFClass 12 Business Studies Chapter 5 Notes pdf

organising class 12 notes

Key points of the lesson- Whenever two or more persons work together on any undertaking, there is a need to vote on the work among these persons. Its name is organization and this is where the work of organization begins. The English word Organization has its origin from Organism, which means the body functions as a complete unit. 

In the language of commerce, the ability to establish effective integration and coordination among different individuals, groups and departments is called organization. Organization is the system of management through which the manager accomplishes his work.

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On the one hand, organization is the process of establishing coordination among various tasks and activities to achieve the goals and objectives set by the enterprise, and on the other hand, it is the art of establishing cordial relations between the working people.

Organization process is such a process of management which is created to achieve the objectives and goals set for the organization. It brings together people with different talents and abilities and brings them together in one organization through sure relationships, coordination and communication. 

Utility to the organization is more than a chart, it is the mechanism with the help of which management operates, coordinates and controls the business. This is actually the cornerstone of management.

Formal organization means an organization in which the rights, duties and responsibilities of officers on every aspect of management are clearly explained. Formal organization forces every person in the organization to work in a certain manner, follow rules, work together and treat and respect each other according to position. 

Informal organization is the exact opposite of formal organization. When informal social relations are established between people working formally in the organization, then due to these relations informal organization is born. 1

Organization structure refers to the entire institutional arrangement of an organization in which managerial and operational functions are performed. Functional organization means such an organization in which the work is divided into different parts on the basis of all the work activities, each work is assigned to a specialist and the benefits of specialization are obtained. 

When an enterprise or organization is divided into various departments and sub-departments, it is called departmental organization.

Delegation means giving authority to one’s subordinates to work within certain limits. This is the art of getting work done from others. When a higher authority delegates more powers to his subordinate employees, it is called decentralization.


VERY SHORT ANSWER TYPE QUESTIONS


Q. 1. Explain the meaning of organization. (Explain the meaning of Organisation.) 

Ans. Organization means to achieve the common objectives of a business organization. It is about establishing friendly coordination between different means of production. However, organization is a broad and deep word, which is difficult to give a universal definition. In the words of H. Hayne – “A friendly combination of specialized parts to achieve a common objective or objectives is called organization.”

Q. 2. Tell two importance of organization. (Write two importance of Organization.)

Ans. 1. Organization reduces repetition of work.

2. There is no wastage of human efforts by the organization. 

Q.3. What are the essential steps in the organization process?

Ans. 1. To divide labour.

2. To clarify the objectives of the organization.

3. Building interpersonal relationships. 

4. Selection of skilled persons for the organization.

Q.4. Write two characteristics of an ideal organization. (What two features of a sound organization?)

Ans. 1. Adequate resources should be collected. 

2. There should be effective and dynamic leadership.

Q.5. Write the names of any two principles of organization. (Write two principles of Organisation.) 

Ans. 1. Principle of work efficiency. 

2. Principle of unity of purpose.

Q. 6. What is the need of organization? Write two reasons. (What is the need of organization? Write its two causes . 

Ans. Organization is needed for the following reasons:

1. Specialization – Every person in the organization is assigned the work in which he has special interest.

2. Control of corruption – Corruption starts flourishing in the absence of organization. Corruption will automatically be stopped by a better organization.

Q.7. Explain the principle of rights editing

Ans. Principle of Delegation: A manager is called a manager because he gets wide authority. 

That is why the powers given to a manager should be sufficient to enable him to fulfill his responsibilities along with providing the necessary respect in the organization. Rights and responsibilities are dependent on each other and both go together. Therefore, authority is necessary to fulfill the obligations.

Q.8. Mention two defects of bad organization.

Ans. The two defects of bad organization are as follows – 

1. Problem is delegation of authorizing – As a result of bad organization, responsibility for work cannot be assigned to others. As a result of which one has to face difficulty in handing over the rights.

2. Departmental imbalance – As a result of bad organization, the relationship between the various departments of the organization breaks down, due to which the work of the organization does not run properly.

Q.9. Write three benefits of functional organization.

Ans. The three benefits of functional organization are as follows:

1. Based on specification, 

2 Increase in work efficiency, 

3. To compete.

Q. 10. Explain the nature of organization. (Explain the nature of Organization.)

Ans. The main stages of the nature of organization are as follows-

(i) Dividing the main activity into small supporting sub-processes. (ii) To vote for the Subsidiary Legislators in certain categories. (iii) To select the concerned qualified officer. (iv) Assigning appropriate authority to the concerned persons. (v) To clarify the objectives. (vi) To establish relationship and balance in activities.

Q. 11. Explain the meaning of transfer of rights.

(What is the meaning of delegation of authority?) Or, what do you understand by delegation? (What do you mean by delegation) 

Ans. In today’s industrial age, no person can do all the work himself nor take all the decisions himself. Therefore, he gives some work to others. In this way, handing over some part of one’s workload to other people is called delegation. 

The person to whom that responsibility is entrusted must also be entrusted with the powers. So that he can complete it. This type of loss of rights is called transfer of rights. According to Theo Hammen, “Delegation simply means giving the assistants the authority to work within specified limits.”

Q. 12. What do you understand by organization structure?

Ans. Organization structure expresses the relationship between different positions. The work of the people working in the enterprise and their relationships are explained through the organizational structure. According to William H. Newman, organization structure deals with the entire system of an enterprise.

Q.13. Write the names of different forms of organization.

Ans. The main forms of organization can be as follows:

1. Line organization

2. Line and Staff organization

3. Functional organization

4. Committee organization

Q.14. What is line organization? (What is line organization.) 

Ans. This is the oldest and simplest form of organization. In which orders are received from higher officials. This order passes through various levels and is received by the lower level officers and they complete the work as per the order. Because the lines of authority and responsibility run in straight sequence, it is called line organization. 

Q. 15. By what names is the line organization called?

Ans. Line organization is called by the following names-

1. Military organization 2. Model organization 3. Departmental organization and vertical and vertical organization

Q.16. Explain three main characteristics of line organization. (Write down three main characteristics of line organization.)

Ans. Following are the three main characteristics of line organization

1. All orders and instructions flow from top to bottom and responsibility flows from bottom to top. 2. The area of ​​work of all the officials of the organization is fixed. 3. Authority and power reside in a straight line.

Q.17. Explain functional organization. (Explain the functional organization.) 

Ans. Functional organization is based on the principle of specialization. Under this system, management is divided in such a way that each person has to do minimum work. Every work is divided into as many small tasks as possible and each person is given the work according to his interest. Every worker is related to the management only through an authority who gives him necessary orders.

Q. 18. Write three benefits of formal organization. (Write three advantages of formal organization.)

Ans. 

1. Thrift

2. End of conflict

3. Determination of responsibility.

Q. 19. What is the importance of organization? (Write the importance of organization.)

Ans. The importance of the organization is as follows-

1. Organization increases managerial efficiency. 

2. Organization makes full use of human and physical resources. 

3. Effective monitoring. 

4. Efficient messaging. 

5. Flexibility.

6. Specification. 

7. Fixed responsibilities.

Q. 20. What do you understand by departmentalization? (What do you understand by Departmentalisation.) 

Ans. Departmentalization is a very useful organizational process. It means classification and division of an industrial enterprise. According to the nature of business, the entire enterprise is divided into different departments. This is called action classification. The efficiency of each department can be measured by placing definite responsibilities on the heads of each department. This type of departmentalization increases the efficiency of the organization.

Q.21. What types of relationships exist between the members of an informal organization? Give an example of such a relationship.

Ans. Informal organization is based on individuals working together. There are personal relationships among their members. For example, a lower ranking employee can give a suggestion to his superior officer as a form of friendship. Their mutual relationship is based only on trust. Informal organization brings employees closer to each other, which increases the feeling of cooperation.

Q. 22. Why should line and staff organization be used instead of line organization? Give three reasons for this. (Give three reason to make a case wly ined and Staff Organization’ should be used in place of Line Organization 

Ans. Due to the following reasons, instead of line organization, the form of line and staff organization is needed-

(i) The employees of the organization who are experts help the line managers by giving their suggestions so that better decisions can be taken by having correct information.

(ii) Line managers can take advantage of the special knowledge of their employees.

(iii) Line and staff organization is more important than line organization.

Q. 23. What are the objectives of the organization? (What are the objectives of organization?)

Ans. The main objectives of the organization are as follows-

1. Increase in managerial capacity. 2. To do the most with the minimum cost. 3. To awaken the feeling of service along with profit. 4. To maintain cordial relations between the owners and the workers.

Q. 24. What do you understand by lateral organization? (What do you understand by Lateral Organization?) 

Ans. Lateral organization means that form of enterprise under which there is a close relationship between superior authority and subordination. The subordinate is responsible to his immediate superior.

E.F. l. According to Brad, “In most of the working relationships between administrators and supervisors, the responsibilities and authority are similar.

Q.25. What are the elements of delegation of authority? (What are the elements of delegation of authority?)

Ans. Following are the elements of delegation of authority-

2. Providing rights.

1. To delegate the work to others.

4. Determination of responsibilities.

3. Creating accountability.

Q.26. Explain the importance of delegation of authority. (Describe the importance of Delegation of Authority)

Ans. The importance of inculcating rights is as follows-

1 Development of subordinate officers.

2. Coordination.

3. Administrative shortage in India.

4. Improvement in the moral level of subordinates. 

5. Facility for expansion of business. 

Q.27. What are the difficulties in handing over authority?

Ans. 1. Weighting is done only within prescribed limits. 2. Assignment depends on the efficiency of subordinates. 3. Some persons cannot be assigned. 4. Geographical limitations also create difficulty in assignment.

Q. 28. Write three benefits of handing over the charge. (Write three merits of Delegation of Authority.) 

Ans. The benefits of weighting are as follows-

1. Administrative burden reduces. 2. The moral level of subordinates is high. 3. Opportunities are available to facilitate business expansion.

Q. 29. Define centralization. (Define Centralisation.) 

Ans. When managers have the right to take all important decisions in an organization. So this system is called centralization. Under this, authority is not assigned to subordinates. Lewis A. According to Allen, “Systematic and permanent security at central points in an organization is called centralization.”

Q.30. Explain Decentralisation.

Ans. Decentralization – When decisions are taken at all levels of management in an organization and necessary rights and responsibilities are given to subordinates in this regard, then such a system is called decentralization. Louis A. According to Allen, “Decentralization means systematically handing over all powers to lower levels except those exercised at central points.” Decentralization is concerned with providing authority in terms of accountability.

Q.31. Write three objectives of decentralization. (Write three objectives of decentralization.) 

Ans. The objectives of decentralization are as follows:- Process. 

1. To minimize the workload of higher officials. 

2. Opportunities for growth for managers 

3. Importance of production and market. 

Q.32 . Write three principles of delegation of authority. (Write three principles of Delegation of Authority)

Ans. The three principles of delegation of authority are as follows:

1. Principle of unity of command.

2. Principle of rights and responsibilities.

3. Principle of exception.

Q.33. Explain the characteristics of transfer of rights. (Write the characteristics of Delegation of Authority)

(ii) Ans. Features – (i) Only moral and normal tasks should be assigned to subordinates. Only the rights received can be further assigned. (ii) Authority is given only to subordinates. (iv) The person assigning the rights cannot be freed from his responsibility after assigning the rights, he can also take back the rights.

Q.34. Organization is a process, explain.

Ans. Organization is a process – Many scholars have considered organization as a process in which

The following activities are included:-

1. Dividing a big task into small tasks.

2. To form definite groups of actions on the basis of common similarities. 

3. Deciding which work will be done by which person and assigning the work to them.

4. To clarify the position of all officers.

5. To establish coordination and balance in activities. 6. Related to the people to whom the work is given

Q.35 . Explain the principle of contact between officials.

Ans. Principle of contact with officials (The Scalar Principle) – Every employee of the organization should know to whom he is subordinate, from whom he will receive orders and instructions, from whom he will get advice and technical service and to whom he will be accountable. For this, the path of exercising authority in the organization should be clear. The clearer the path of execution of authority from top management to lower levels, the more efficient control and message transmission will be in the enterprise.


SHORT ANSWER TYPE QUESTIONS


Q.1. What is called organization? (What is Organization?) 

Ans. Meaning of Organization – Whenever two or more people work together to achieve some objective, there is a need to distribute the work among those people. This is where the organization is born. The English word Organization is derived from ‘Organism’ which means the parts of the body which are related to each other and function as a complete unit. 

For example, the structure of the human body, various parts of the body – hands, feet, mouth, eyes, nose and brain etc. have definite functions. Such as working with the hands, eating with the mouth, digestion with the stomach, seeing with the eyes, hearing with the ears and smelling with the nose. All these activities are mutually dependent on the activities of each other organ. 

But apart from these various organs, there is also a central department in the brain of the human body, which controls the activities of all the organs. In this way, the art of establishing effective coordination among various departments is called ‘Organization’.

Q. 2. Define organization. (Define Organization .) 

Ans. Following are the definitions of organization given by various scholars: 1. According to Hai, “A friendly combination of specific parts to achieve a common objective or objectives is called organization.”

2. According to Terry, “Organization means establishing effective behavioral relationships between individuals and work places chosen to work efficiently with a group.”

3. According to Harold Kunz and O’Donnell, “Organization involves grouping the activities necessary to accomplish plans and goals, assigning these activities to appropriate departments and arranging for the execution and coordination of rights.”

Q.3. Explain the characteristics of the organization.

Ans. Characteristics of Organization-

1. Organization is one of the important functions of management. It is also called the instrument of management. 

2. The work and rights of all the people engaged in the organization are fixed.

3. All the people working in the organization work under the leadership of a senior officer.

4. Organization is a group of individuals. It is needed only where some people make efforts together. Organization does not require just one person. This group of people can be small or very large.

5. Organizations are universal, that is, they are essentially formed in all business and non-business organizations.

6. Whether the organization is small or big, its process is the same – division of work, assigning work to individuals, giving authority, coordination and fixing responsibilities. 

Q. 4. Throw light on the need (importance) of the organization.

Ans. Organization has special importance for the expansion and development of business. A good organizer brings efficiency in management and administration, encourages specialization and motivates the work of various people engaged in the organization towards the objectives. 

It makes possible the best use of machinery, material, capital and human resources in business and provides adequate resources and time to managers for planning, direction and control. By improving the method of using experts, it brings efficiency in every aspect of the organization. 

Almost all managers believe in the importance of organization in business. A bad organization leads to inefficiencies and delays in business. In the absence of efficient organization, inefficiency, an organization equipped with high level human resources, modern machines and equipment fails, as Henry Dennison has said, “Despite having good people, an organization structure becomes a failure due to internal discord and loss of momentum. Gives birth, develops and retains good people.”-

Q.5. Explain the various stages of organization process. (Explain the various steps in Organization.)

Ans. The various stages of organization process are as follows-

1. Establishment of Enterprise Objectives. 2. Determination of Primary Objectives, Policies and Plans.

3. Defining and classifying activities to achieve objectives (Identification and Classification of Activities)

4. Assigning responsibility for each category of activities to the heads of employees and also giving them appropriate authority (Delegation of Authority to the head of each group). 

5. Tying these Groupings together 

6. Categorizing activities according to the increase of available human and physical resources, so that maximum use of resources can be made (Grouping of Activities). 

Q.6. Explain the characteristics of formal organization. (Explain the characteristics of Formal Organization.) 

Ans. 1. It is a voluntarily formed organization. 

2. In this the assignment of rights is from top to bottom. 

3. The principle of unity of command applies in this. 4. Organization charts are used in this. 

5. In this, the rights, duties and responsibilities of officers of each level are fully explained. 

6. In this the relationship between the members is completely personal.

Q.7. Explain the characteristics of Informal Organization. 

Ans. Characteristics of informal organization are various-

1. Such organizations are formed automatically. 

2. Such organizations are formed suddenly. 

3. These are social organizations. 

4. These organizations are found at all levels of management. 

5. Such organizations have traditions and rules which are generally followed. 

6. Such organizations are formed through mutual relationships and habits. 

Q.8. Write any five things to be kept in mind while determining the organization structure. (Give five points to be kept in mind while determining Organizational Structure.)

Ans. Various things are taken into consideration to determine the organization structure which are as follows-

It is a major component in the construction of. If the organization is small then central organization can also be adopted. And if the organization is very large, then while structuring the organization, a lot of attention can be given to decentralization. 1. Size of Organization – Size of the organization can also be given great attention to the organization structure.

2. Objectives of Organization – Organization is not an objective in itself, it is a means of achieving the objectives. Therefore, while choosing the organization structure, first of all the objectives of the organization should be kept in mind.

3. Type of Market – The market of the organization can be local, national, international. The larger the market size, the more detailed the structure will be. On the contrary, the smaller the market, the narrower will be the organization structure.

4. Abilities of Management – ​​The abilities of top management also affect the organization structure. If the managers are highly qualified then they can run a large organization by adopting linear organization.

Q.9 . Discuss formal organization. (Explain the Formal Organization.)

Ans. It means an organization in which there are clear boundaries of rights, duties and responsibilities of managers at each level. In such an organization, delegation of authority occurs from top to bottom. According to Chester Bainard, “When the activities of two or more persons are coordinated in a judicious manner to achieve a definite objective, such organization is called formal organization.”

Q. 10. Discuss informal organization. (Explain the Informal Organisation.)

Ans. Informal organization is formed on the basis of personal communication, common knowledge etc. According to Earl P. Strong, “Informal organization is a social structure which is created to satisfy individual needs”. Thus, informal means an organization which is not formed for any specific purpose but is based on mutual personal relationships. In formal organizations man becomes a mere puppet of rules. He has to follow the rules, but in informal organizations the person creates this organization independently on his personal relationships and desires.

Q. 11. Tell five benefits of informal organization. (Describe five merits of Informal Organisation.)

Ans. 

1. Eliminates the shortcomings of formal organization.

2. Provide satisfaction to employees.

3. Contributes to efficient messaging.

4. This type of organizations strengthens mutual relations among employees. 

5. Provide inspiration to the employees of the organization towards work.

Q. 12. Explain five benefits of formal organization. (Describe five merits of Formal Organization.)

Ans. The benefits of formal organization are as follows-

1. Correct division of work: In this organization, work is distributed among different people according to their qualifications.

2. Definite rights – In such an organization no person has any misconception about his duties and rights.

3. Fixed liability – Persons who do not perform their work efficiently can be easily held responsible.

4. Coordination and control – In formal organization there is coordination in the work of different people because everyone’s work and rights are ensured.

5. Stability in the organization Organizations are stable and long-lived because change in employees does not affect their functioning.

Q. 13. Write five principles of organization. (Write down five Principles of Organization.) 

Ans. The principles of organization are as follows-

1. Principle of Unity of Objective – The objectives of every department and sub-department of the organization should be the same as those of the organization.

2. Principle of Specialization – Every person should be assigned the work in which he is skilled in doing so that he becomes an expert in that work. 3. Principle of Efficiency – An organization can be efficient only if its structure is such that its members can achieve the objective with minimum cost and minimum bad effects. 

4. Principle of Clarity: The more clear the tasks, rights, responsibilities and relationships of the employees are, the more efficiently the employees will be able to contribute to the organization’s objectives.

5. Principle of Division of Work – To achieve every objective, some activities are necessary to be done. The better an organization divides these activities, the more it will get the benefits of division of labor and specialization.

Q. 14. Distinguish between Formal and Informal Organization.

Ans. Following are the differences between formal and informal organization:

formal organizationinformal organization
It originates from the purpose of rights.1. It arises automatically due to social relations.
2. These are made to fulfill technical purposes.2. These are made to achieve social satisfaction.
3. Its members have impersonal relations3. Its members have personal relationships.
4. In this, all the rules, duties and responsibilities are in written form.4. There is nothing in written form in these.
5. These are more permanent and long term.5. Are relatively less permanent and have short life span.
6. Its size can be very large.6. Its size usually remains small.
7. In this the flow of power runs from top to bottom.7. In this the flow of power runs from bottom to top.

Q. 15. What are the objectives of the organization? (What are the Objects of Organization?)

Ans. The objectives of the organization are as follows-

1. Service Motive ——The main objective of every business organization is to earn profit. But the sole objective should not be to earn profit, but along with profit, service to the society should also be the ultimate goal of the organization. Maximum profit has to be earned by producing maximum output at cost. 

2. Economic Production: The main objective of an organization is the identity of a minimally successful organization.

3. Control: The organization has given different tasks to each person. Therefore, if there is any mistake in any person’s work, he can be held responsible. This keeps control over the work and also over the person doing the work.

4. Economic Use of Sources Production – Through efficient organization system, more efficient use of limited human and physical resources of the organization becomes possible.

5. Co-ordination between Different Activities: The objective of the organization is to establish coordination in the work of different people. The organization makes such arrangements that where one person’s work ends, another’s begins and no person becomes an obstacle to anyone else’s work. 

Q. 16. Name the types of organizations. (Give the names of Different Types of Organisation.)

Ans. Types of Organization-

1. Line Organization

2. Line and Staff Organization

3. Functional Organization

4. Committee Organization

5. Formal and Informal Organization.

6. Inter-unit Administrative Organization

7. Lateral Organization 

Q. 17. Write five characteristics of line organization. (Write the characteristics of Line Organisation.)

Ans. The five characteristics of line organization are-

1. The work area of ​​all the officials of the organization is fixed. 

2. Departmental heads have complete independence in their departments. 

3. This method is simple and oldest. 

4. The number of subordinates under a superior is limited. 

5. There is coordination between different departments.

Q. 18. What is called line organization? (What is meant by Line Organization! 

Ans. This is the oldest and simplest method of organization, which modern management writers have called by many names, such as military organization, command organization, departmental organization, straight and vertical organization. These are called military organizations because the army is organized on this basis. Is. 

Every order in the army is given by the supreme authority General and that order reaches the soldier through Colonel, Major Captain, Lieutenant etc. Similarly, in industry, the orders of the public manager reach the workers through various department heads and foremen.

Q. 19. What is called line and staff organization? (What is meant by Line and Staff Organization?)

Ans. Due to increasing business complexities, Line Organization proved unsuitable and to overcome the shortcomings of Line Organization, ‘Line and Staff Organization’ was born. In this format of organization, some specialized staff were appointed to advise the officers. ) In this organization also the authority is exercised in a straight line from top to bottom. 

But for each work a special person is appointed who gives special advice to the officers in their work. But it should be noted that whether or not to accept the advice of a particular staff depends entirely on the wish of the officer. Whether he accepts it or not.

Q.20. Write three benefits of line and staff organization. (Give three advantages of Line and Staff Organization.)

Ans. The benefits of line and staff organization are as follows-

1. Encouragement to Specialization – Experts are appointed to advise higher officials, which encourages specialization.

2. Economy – Advice and decisions given by experts prevent wastage and increase the efficiency of employees.

3. Best and Right Decision – Every problem is considered by skilled and specialized people, which increases the chances of taking the right and best decision.

Q. 21. Line organization is suitable for which type of industries? (For what types of Industries the Line Organization is suitable?)

Ans. This system is more suitable in the following types of industries- 

1. Where the number of employees is not high. 

2. Where the size of the unit is small. 

3, where production activities can be divided. 

4. Where the machine is automatic, so that there is not much burden on the foreman and he does not need to use much intelligence. 

5. Where employees love discipline.

Q.22. What is functional organization? (What is meant by Functional Organization?)

Ans. Under functional organization system, Shri F. W. Taylor (FW Taylor) has achieved the objective of making maximum use of specific abilities as the basis for business operations.

According to Taylor, “In this system, management is divided in such a way that each person has to do minimum work. Therefore, their work should be done in the smallest possible way.

= (Process) so that the person’s work is limited to only one specific activity. The main characteristic of this system of organization is that every worker is related to the management only through the officer, who orders him to perform various activities.

In functional organization, authority does not run vertically like in line organization. In a functional organization, a person with specific knowledge is assigned to each small task.

Q. 23. Write five benefits of functional organization. (Explain the five merits of Functional Organization.) 

Ans. The benefits of functional organization are as follows-

1. Specialization – Every work is done under the supervision of experts and by doing only a particular part of the work every officer achieves specialization in doing that work.

2. Flexibility – Expansion and contraction of the organization is easy. When work increases, new units are opened for production and sales and when work decreases, units can be reduced without any manipulation.

3. Efficiency—Since managers are experts in their field of work. Due to this, every work in the organization is done with maximum efficiency. 

4. Economy in operation – Every machine and device, which is related to a | It is used for work, in one department so that it can be used optimally. 

5. Research – Appointment of experts encourages research.

Q. 24. Write the demerits of functional organization. (Give the drawbacks of Functional Organization.)

Ans. The disadvantages of functional organization are as follows- 

1. Difficulty in coordination. 

2. Problem of discipline objectives. 

3. Difficulty in determining responsibility. 

4. Non-cooperation. 

5. Not suitable for an organization producing many goods. 

6. Disagreements among managers 

7. Main being unclear. 

8. Unnecessary increase in daily tasks. 

9. Lack of managerial development for higher positions. 

10. Unsuitable for organizations with businesses in multiple sectors.

Q. 25. Name the eight experts who have been suggested by Taylor in functional organization. (Give the names of eight specialists as recommended by Taylor Functional Foremanship.)

Ans. At office level –

1. Program Clerk (Routine Clerk), 

2. Instruction Card Clerk, 

3. Time and Cog Clerk, 

4. Discipline Officer. at factory level 

5. Gang Boss, 

6. Speed ​​Boss 

7. Repair Boss, 

8. Inspector.

Q.26. Explain the main features of functional organization. (State the main features of Functional Organisation.)

Ans. Following are the characteristics of functional organization:

1. The right to give orders regarding a specific work is given to a senior specialist.

2. In this organization planning and implementation tasks are separated. 

3. In this organization, every work is divided into small activities on the basis of specialization.

4. In this organization, instead of ‘unity of command’, ‘plurality of command’ is found. That is, the worker receives orders from many officers (eight heroes) rather than from any one officer.

5. In this organization, experts not only give advice, but they have the right to give orders in the entire organization in their field.

6. In this organization, division of rights and responsibilities is done on the basis of functions and not on the basis of departments.

Q. 27. What are the reasons for conflict between line and staff? (What are the causes of conflict between Line and Staff?) 

Ans. There are often fights between the line and the staff. Line officers plan, organize, operate and control business activities. Staff officers are appointed to assist the line officers. Staff officers are specialized in their specific functions. Therefore, on the orders of line officers, they express their views and give their opinion on a particular problem. 

It is the discretion of the line officers to accept their opinion or not. Both are business executives. Both give too much importance to themselves. Both consider themselves scholars in their field of work. That’s why they pull each other’s legs and try to humiliate each other. As a result fights occur. 

Following are the reasons for conflict between line and staff:

1. Emotional and psychological reasons 

2. Difference in rights. 

3. Difference in scope 

4. Limitations of authority of experts.

5. Variation in workload.

Q. 28. What is decentralization? (What is Decentralization)

Ans. Decentralization is a developed form of delegation. That is, when higher officials delegate a relatively greater amount of authority to subordinates, then decentralization 24. In such a situation, most of the decisions are taken by the same people who have to implement these decisions. 

Therefore, in decentralization, except some important rights, which can be best exercised at the central point, all the remaining rights are reduced to a lower level.

Q. 29. Define delegation of authority. (Define Delegation .) 

Ans. Delegating authority means giving only the authority to subordinates to work within certain limits. It is not possible for a senior officer to complete all the tasks of a big organization by himself using all his powers. Therefore, it becomes necessary for such high officials to delegate their authority to their subordinates. 

Pro. Koontz and O’Donnell have said, “Just as authority is the key to the work of management, similarly delegation of authority is the key to organization.” Many writers have translated the English word ‘Delegation of Authority’ into Hindi in various ways – delegation of authority, transfer of authority, delegation of authority, delegation of authority etc. 

Q.30. What are the main elements of delegation of authority? (What are the main elements of Delegation?) 

Ans. The main elements of delegation of authority are as follows-

1. Assignment of Duties: First of all, the superior should assign certain tasks to his subordinates. The tasks assigned to subordinates should be of operative nature. 

2. Granting Authority: According to the assigned work, authority should be given to the subordinates. To exercise these rights, it is necessary to provide complete freedom to the subordinates so that they can use efficiency and discretion.

3. Determination of Responsibilities – The third important element in the process of planning is to hold the subordinate responsible for performing the work correctly. The subordinate is accountable to the officer who has assigned him the work for the success or failure of his work.

Q.31. Describe any three principles of delegation of authority. (Explain any three Principles of Delegation.)

Ans. The principles of delegation of authority are as follows:

1. Principle of Authority and Responsibility – Subordinate employees should be given authority according to their assigned tasks and responsibilities. Thus there should be a balance between rights and responsibilities.

2. Principle of Unity of Command – The work of command should be done by only one senior officer so that unity is maintained in the orders.

3. The Principle of Clarity of Delegation – Delegation can be universal or specific, written or oral. Whatever be the nature of the assignment, it is important to be clear. From the point of view of the principle of clarity, the process of handing over written and specific rights is better.

Q.32. Why is it necessary to delegate authority? (Why is delegation necessary?) 

Ans. Need and Importance of Delegation of Authority— 

The views of the following scholars related to the need and importance of Bhayarpan are important. 

1. According to Urwick, “Lack of courage to take charge or lack of knowledge of taking charge is a major reason for the failure of organizations.” 

2. According to Keith Davis, “If the inauguration is not done then who will do it? 

3. Douglas Basil has said, “Managers have a method of delegating responsibility for good efficiency and of satisfying needs and providing motivation.” In short, the importance of weighting is as follows- 

1. The ability of subordinates increases.

2. The morale of subordinates increases. 

3. Creates cordial relations between subordinates and superiors. 

4. Assignment is the primary aspect of the arrangement. 

5. Transferring the load speeds up the work. 

6. Assignment makes it possible to test subordinates.

7. Makes business growth possible. 

8. Weighting makes decentralization possible 

9. Higher officers can concentrate on important management related issues. Weighting expands the range of human work, that is, with the help of the art of weighting, a high official can do an unlimited amount of work.

Q.33 . Write five benefits of decentralization. (Give five advantages of Decentralization.) 

Ans. The following benefits are obtained from decentralization-

1. Encouragement for the young managers – Decentralization provides inspiration to the young managers because they have the facility to take decisions related to their work so that they can take decisions as per the need. 

2. Convenience to take decisions: In case of decentralization, the officer has complete freedom in taking decisions. Therefore all necessary decisions are taken on time. 

3. Reduction in the work load executives: Decentralization reduces the workload of senior officers. Small decisions are taken by their subordinate officers.

4. Provision of training to managers – Under decentralization, instead of following orders from above, the manager develops his own thinking and learns and gains experience while working.

5. Improvement in employees’s morale – In the situation of decentralization, the morale of senior employees increases because they get the right to take decisions independently due to which they work with full dedication and true heart.

Q.34. Write any five disadvantages of decentralization. (Give any five disadvantages of Decentralization.)

Ans. The disadvantages of decentralization are as follows- 

1. Complete decentralization is not possible for the organization. 

2. Difficult to implement due to lack of proper coordination. 

3. It deprives us of the benefits of specialization. 

4. Decentralization increases costs. 

5. Decentralization destroys uniformity. 

Q.35. Give four essential things to make the presentation effective. (Give four main points for making delegation effective.)

Ans. Four essential things to make decentralization effective are as follows: 1. Development of Subordinates

The process of decentralization can also be made effective when proper arrangements are made for the training of assistant officers for their development and capacity.

2. Lack of Interference: At the departmental level, assistant officers should have minimal interference in the daily work so that the plan of decentralization can be made successful.

3. Effective Control – Effective control establishes consistency in the actions taken to achieve the goal. Koontz and O’Donnell have said, “Control measures the work performed by employees supporting management functions and makes necessary improvements in them, so that it can be ensured that the goals of the organization and their achievement are achieved.” Whether the plan set out to do so is being implemented or not.”

4. Effective Communication System – Communication system is a systematic part of managerial method. No management work can be completed in the absence of communication system. Therefore, it is very important for the communication system to be effective in a decentralized management system. 

Q.36. Write the difference between allocation and decentralization. (Give points of differences between Delegation and Decentralisation.) 

Ans. The following differences between allocation and decentralization –

DelegationDecentralization
1. In this, rights are transferred from one person to another.1. In this, the assignment of rights is done widely in the entire organization, i.e.
2. It shows a limited description of power.2.It shows a detailed description of power.
3. Devolution is a step towards decentralization.3.This is the last step of the weighting process. It involves weighting itself.
4. In this, top managers have only general and minimal control. The powers to control are also departmental4. In this the superior officer can maintain control over his subordinate.

Q.37. Write five symptoms of decentralization. (Write five characteristics of Decentralization.)

Ans. Following are the five characteristics of decentralization-

1. Most of the decisions are taken at lower levels of management.

2. Most of the work of the organization is influenced by the decisions taken by the lower levels of management.

3. Decisions are less scrutinized. The less scrutiny there is, the more decentralization there will be.

4. Some central controls are implemented to control the work of subordinates.

5. The administrative unit of the entire enterprise is divided into sub-departments.

Q.38. Write five principles of decentralization. (Write five principles of Decentralization.) 

Ans. Following are the five principles of decentralization-

1. Effective control should be exercised by higher officials in the organization.

2. Rights and responsibilities should be instilled together. 

3. Rights should be handed over only to qualified officers.

4. Higher officers should provide help and advice to subordinates.

5. Financial and non-financial incentives should be provided to qualified assistant officers.


LONG ANSWER TYPE QUESTIONS


Q.1. Define Organization and discuss the elements of Organization. Or, Define Organization and explain its main characteristics. (Define Organization and give its main characteristics.)

Ans. Definition of Organization – Following are the definitions of organization given by various scholars-

1. According to Chastard Bernard, “Organization is the cooperative action of two or more persons.” (“A system of co-operative activities of two or more persons is called organization.” Chestard Bainard)

2. According to Harold Kundraj and O’Donnell, “Organization involves grouping the activities necessary to fulfill plans and goals, assigning these activities to appropriate departments and making arrangements for editing and coordination of rights.” (“Organization involves the grouping of activities necessary to accomplish goals and plant the assignment of these activities to appropriate departments and the provision for authority delegation and co-ordination.”-Harold Koontz and O’Donnel)

Appropriate Definition – In this regard, Louis A. The definition given by Allen in his book Management and Organization is more humane. According to him, “Organization is the process of identifying and grouping the work to be done, defining and editing responsibilities and authority and establishing relationships with the aim of enabling humans to work together effectively to complete tasks. “

The elements or characteristics of organization are as follows: 

1. Common Objective – Every organization is organized to fulfill collective objectives.

2. Division of Work: To do the work properly in the organization, the work is divided into small activities and sub-functions. 

3. Group of Persons: There must be a group of at least two or more persons to form an organization.

4. Rules and Regulation – There should be coordination between everyone within the organization. It is done in a regulated and controlled manner. 5. Co-ordination —- different departments of the organization

6. Co-operative Efforts – It is essential to get cooperation from all the people in the organization.

Q. 2. Explain the various stages of organization process. (Explain the various steps in Organization.) Or, describe the nature of organization. (Describe the nature or progress of Organization.)

Ans. Nature of Organization – The nature of organization can be studied in the following forms – Lewis A. According to Allen’s definition, a manager has to do the following tasks to build an organization.

1. Identification and Grouping of Work: First of all, the manager has to determine what are the objectives of the organization and what work is essential and helpful in achieving those objectives. For example, for an organization that wants to produce tractors, the functions of production, purchasing and finance must be done. One person cannot do all the work. Therefore the tasks are divided among different people. 

A group of all the people related to each work is formed, which is called a department or sub-department. Now each department is put under one efficient manager. These managers look after the work of their department and are responsible for their efficient execution. The process of creating small departments of an organization’s activities and placing them under each manager is called departmentalization. Thus the following activities are included in the organization process:

1. Dividing the main work into smaller supporting tasks. 2. To divide similar actions into groups. 

3. Assigning the work to the concerned officer.

4. Giving them rights. 

5. To clarify the situation.

6. To bring coordination and balance in activities.

2. Definition of Delegation of Authority and Responsibility of work – After forming the department, the work to be done by each manager of the department and his subordinates is defined and assigned to them. . They are given sufficient powers to perform the tasks. Also, their responsibilities are determined for completing the work efficiently. Usually the rights and responsibilities of individuals are defined and captured in writing.

3. Establishment of Relationships: After determining and assigning the rights, tasks and responsibilities of the employees, it is decided who will work under whom and who will be the people under him. From whom will he receive work and orders, from whom will he receive technical advice and to whom can he give orders. In this way, every member of the organization gets connected to each other like a chain so that their collective power can be used to achieve the objectives of the organization.

By doing these three activities, an efficient organization is created in the organization due to which the members, by cooperating with each other, collectively make the organization successful in achieving its objectives.

According to Koontz and O’Donnell, the necessary steps are as follows- 

1. Establishment of Enterprise Objective

2. Determination of Primary Objectives, Policies and Plans

3. Defining and classifying activities to achieve objectives.

4. To rank the available human and physical resources for activities in increasing order, so that resources can be used more (Grouping of Activities).

5. Assigning responsibility for each category of activities to the heads of employees and also providing them appropriate authority (Delegation of Authority to the head of each group.)

Q.3. Explain the principles of organization. (Explain the Principles of Organization.).

Or, name the five principles of organization. (Name five Principles of Organization.)

Ans. To achieve desired results in the organization process, it is necessary that the organization be based on the following principles. According to Kartal Sindal Urvik, there are the following principles of organization:

1. The Principle of Unity of Objectives: The organization should be of such a type that all the main and sub-functions of the business should be in the direction of achieving the business objectives.

2. Principle of Authority: The rights of every officer and worker should be fixed and these rights should be decided according to the level of authority of the employee.

3. Principle of Unity of Command – Every employee should receive orders from only one officer and on the other hand, he should be responsible to only one officer for his work.

4. Principle of Unity of Direction – There should be similar instructions at all the same levels of the organization. The business should have only one plan and its departments should work according to it.

5. Principle of Efficiency – The objective of the business should be achieved efficiently i.e. maximum objectives should be achieved at minimum cost. 

6. Principle of Co-ordination——The objective of the organization should be to establish a relationship between business, physical and human resources. At the same time, various individual human efforts should be coordinated and directed towards a collective objective. 

7. Principle of Equality – The rights and responsibilities of officers at every level should be equal and there should be uniformity among them.

8. Proper Departmentation – The major activity should be divided into appropriate departments and sub-departments.

9. The Principle of Continuity: The organization should be established keeping in mind the long-term objectives of the business so that it can be used continuously for business activities. 

10. The Principle of Specialization: The responsibility of completing different tasks should be assigned to the specific appropriate employee related to that task. 

11. The Principle of Definition – The rights, responsibilities and duties of every employee should be clearly explained. 

12. The Principle of Simplicity: The organization of the organization should be in such a way that even an ordinary laborer can easily understand it and work accordingly. 

13. The Principle of Responsibility: Even after handing over the authority to the subordinate employee, the officer transferring the authority is responsible for the mistakes committed by the subordinate employees.

14. The Principle of Balancing – According to this principle, the efforts of various employees and departments should be systematic, balanced and controlled efficiently. 

15. The Principle of Span of Control – The control capacity of every person is limited. Therefore, there should be at most five or six subordinate employees under him so that he can supervise and lead their work efficiently. 

Q. 4. Explain the characteristics of a good or clean organization. (Explain the requisites of a Sound Organisation.) 

Ans. Peter Drucker has said, “The best organization is one that helps ordinary people do extraordinary things.” In fact, an ideal organization is an organization in which all the principles of organization are followed. An ideal organization has the following characteristics:

1. Sound Business Objectives An important quality of a good organization is that its objectives are sound. These objectives should be clearly explained so that the individual can understand what contribution he can make in achieving these objectives. 

2. Clear Division of Duties and Responsibilities: The duties and responsibilities of every officer and employee should be clear so that it is known what is the scope of work and to what extent he can take decisions independently. Is. There should be information about who is responsible for it and to whom it is responsible. 

3. Specialization – Every employee should be given only that work for which he is qualified in all respects.

4. Reasonable span of control – The number of employees working under each officer should neither be too high nor too low. One officer can easily control the work of 5-6 employees. Although the exact area of ​​control depends on the qualification of the officer, nature of work etc.

5. Effective Communication – Arrangements for communication have to be made to exchange ideas, give orders, instructions, suggestions, reports etc. and to remove misconceptions. The message vehicle should be two-way, that is, there should be a good arrangement for orders to go from top to bottom and complaints, opinion reports etc. to go from bottom to top.

6. Flexibility: There must be so much flexibility in the organization that it can be changed due to day-to-day changes in the organization and the efficiency of such an organization should not be affected. Pro. Thomas R. According to Jones, “An organization should be designed in such a way that it can change itself with the growth and improvement of the business and external conditions.”

7. Effective Leadership – The success of the organization basically depends on those who lead it. Leaders should be skilled and capable and should also have the ability to change themselves according to circumstances rather than being rigid. 

8. Co-ordination – There should be adequate coordination among various departments and employees of the organization so that there is no delay in any work. 

9. Unity of Command – Every person should get orders from only one officer.

10. Morale – The success of the organization depends on this to a great extent. To what extent are its employees satisfied? Therefore, the organization should make arrangements for various types of monetary and non-monetary incentives so that its employees can remain satisfied and work diligently.

11. Criticism of any officer should be done in front of him only, rather the employee should be contacted only through his officer.

12. Situations of conflict and confrontation should be resolved quickly and peacefully. 

Q.5. “Organization is an important instrument in achieving the objectives of the organization.” Discuss. (“Organization is an important tool to achieve enterprise objectives.” Discuss.) 

Or, Discuss the importance of organization. (Explain the importance of Organization.)

Ans. Importance of Organization: Organization has special importance for the expansion and development of business. A good organizer is an efficient person in management and administration, encourages specialization and motivates the work of various people engaged in the organization towards the objective. It makes possible the best use of machinery, materials, capital and human resources in business and provides managers with space and time for planning, direction and control. 

It makes research work efficient by encouraging the use of experts and brings efficiency in every aspect of the organization by improving the method of use of machinery, materials and capital. Almost all managers believe in the importance of organization in business. And old organization creates inefficiencies, confusion and delays in business. 

Due to lack of efficient organization, an organization equipped with high level human resources and modern machines and equipment fails. This importance of organization can be expressed in the following way-

1. Minimum repetition and wastage – In a good organization, due to proper division of work among the employees, repetition of activities is minimized due to which there is no wastage of human efforts.

2. Efficient communication – The line of authority is clear in the organization and every employee knows from whom he will get necessary orders and instructions and to whom he can give orders and instructions. The clarity of these routes increases efficiency in conveying messages. 

3. Minimum delay and confusion – Due to clear definition of work, jurisdiction and responsibility among the members of the organization, there is no confusion among them about their responsibilities and there is no possibility of delay in completing the assigned work. .

4. Cooperative environment – ​​In a good organization, the duties, rights and responsibilities of various employees are clear and there is a fair distribution of them among the employees, due to which discord does not arise among them and a pleasant and cooperative atmosphere is maintained there.

5. High morale: Due to fair distribution of work and rights and cooperative environment, employees remain satisfied with their work and the organization, due to which their morale remains high.

6. Effective supervision – Due to following the principle of span of control, every manager has as many subordinates as he can easily keep under control and supervision.

7. Flexibility: In a good organization, necessary changes can be easily made as and when required, it can be expanded and contracted. 

8. Specialization Due to division of work, the organization gets the benefits of division of labor and specialization.

9. Fixed Responsibility: In case of any problem in the work of any part of the organization, it can be easily determined as to what is the fault in it? Due to this, employees remain alert towards their work and complete their work responsibly. Organization has full importance in every sphere of life – in religious works, in social works, in political works etc. Proper organization is essential for success in all these areas. The importance of organization has also been accepted by writers and poets. 

The famous poet Franklin has said in his poem, “For lack of a small thing even a big thing can be lost. Giving an example, he said that the loss of just one nail of a horseshoe could destroy an entire empire.

It goes away by hand.” In this way, even the smallest thing has importance for the organization. Just as notes are mixed while playing various musical instruments, if this is not done then the notes will not come out properly. Similarly, in business too, it is absolutely necessary to have coordination between land, labour, capital, organization and courage.

Q.6. Differentiate between formal organization and informal organization. (Distinguish between Formal and Informal Organization.) 

Ans. Formal Organization-

Definition of meaning – It means an organization in which there are clear boundaries of rights, duties and responsibilities of managers at each level. In such an organization, delegation of authority occurs from top to bottom. According to Chestard Bainard, “When the activities of two or more persons are coordinated in a judicious manner to achieve a definite objective, then such organization is called formal organization.”

Characteristics of Formal Organization are as follows –

1. It is a voluntarily formed organization. 

2. In this the assignment of rights is from top to bottom. 

3. In this the relations between the members are completely impersonal. 

4. The rule of unity of command applies in this. 

5. Organization chart is used in this. 

6. In this, the rights, duties and responsibilities of each level of officers are fully explained. 

7. It enables division of labour.

Informal Organization – Informal organization is formed on the basis of personal communication, common knowledge etc. According to Earl P. Strong, “Informal organization is a structure which is created to meet individual needs.” 

Thus, informal organization means an organization which is not formed for any specific purpose but is based on mutual personal relationships. In informal organizations, man becomes only a puppet of the rules, he has to follow the rules, but in informal organizations, the person freely creates this organization on his personal relationships and desires.

Symptoms- These symptoms are as follows-

1. Such organizations are formed automatically.

2. Such organizations are formed suddenly and not in a planned manner. 

3. These are social organizations. 

4. Organization chart has no place in such organizations. 

5. Organizations are found at all levels in management. 

6. Such organizations have their own traditions and rules which are generally followed. 

7. Such organizations are formed through mutual relationships and habits.

1 Difference between Formal and Informal Organization—

The differences between these are as follows-

Formal OrganizationInformal Organization
1. It originates from delegation of rights.1. It arises automatically due to social relations.
2. These are made to fulfill technical purposes.2. These are made to achieve social satisfaction.
3. There are impersonal relationships among its members.3. Its members have personal relationships.
4. In this, rules, duties and responsibilities are all in written form.4. There is nothing in written form in these.
5. These are permanent and long term.5. Are relatively less permanent and have short life span.
6. Its size can be very large.6. Its size usually remains small.
7. In this the flow of power moves from top to bottom.7. In this the flow of power runs from bottom to top.

Q.7. Briefly explain committee organization. Also tell the merits and demerits of this method. (Discuss briefly Committee Organisation. What are its Merits and merits?)

Ans. Meaning: Committee organization has become prevalent to establish coordination among various departments of the organization. Under this, a Central Committee is formed to oversee the activities of the organizational unit, whose chairman is the Public Manager. 

To assist this Central Committee, other small ‘Co-ordinating Committees’ are formed. Committee organization is mostly used only in large size business organizations. The committee consists of at least three working advisors. Definitions – Some major definitions of committee organization are as follows

1. C.R. According to Davis, “A committee is a group of individuals who meet to coordinate ideas, resulting in an exchange of ideas regarding a solution to a problem.” (“A committee is a group of individuals whe meet for the purpose of effecting and integration of ideas, leading to meeting of minds, concerning some problems.”)) CR Davis

2. According to Haman, “A group of persons whether appointed or elected who meet to coordinate views.” (“A group of persons either appointed or elected who are to meet for the purpose of considering matters assigned to it.”-Thee Haimann)

3. W. According to H. Newman, “A committee is formed by a group of persons who are specifically appointed to carry out some administrative work.” (“A committee consists of a group of specially designated to reform some administrative |

act.”-WH Newman) Forms of Committee Organization: There are two forms of this organization which are as follows –

1. Permanent Committee: These committees are permanent and carry out their responsibilities continuously. This committee has full authority to take and implement decisions. This committee is considered as the Executive Committee. 

2. Standing Committee – These committees are formed for a specific purpose. These are temporary because they end after the achievement of a particular objective.

Advantages of Committee Organization: These benefits are as follows-

1. The decisions of the committee are more logical and justified.

2. The committee encourages democratic system and cooperation. 

3. The committee can take quick decisions on important matters. 

4. Committee organization also helps in integration of power. 

5. Helps in the development of executive management.

6. Decisions are taken in committees without any discrimination. 

7. There is coordination among various departments of the organization. 

8. Under the committee system, superiority in decisions comes through collective discussion. 

9. Organization becomes complex as the size of the enterprise increases. In such a country, these committees perform important work. 

10. Committee is an excellent means of disseminating information. 

Disadvantages of Committee Organization – Its disadvantages and disadvantages are as follows-

1. Committees take a lot of time. 

2. The committee is such that they sit to make a horse and come back after making a camel. 

3. Committee organization is possible only in large organizations.

4. Committee organization is a more expensive and time-wasting organization.

5. There is a possibility of atrocities against minorities in the committee. 

6. There is lack of confidentiality in the committee. 

7. Delay in decisions when the size of the committee is large. 

8. One person cannot be held responsible for the decisions of the committee. 

9. Due to disinterest of the committee members, the proceedings become imaginary. 

10. The degree of agreement is high in the decisions of the committee.

Q. 8. Describe functional organization and explain its advantages and main weaknesses. (Describe Functional Organization and point out its advantages and main weaknesses.) 

Ans. Functional Organization – Types of functional organization system

Under, Shri F. W. Taylor has achieved the objective of making maximum use of specific abilities for business operations by making them the basis. 

Taylor argues that a foreman cannot be an expert in every field but can only get the work done. Therefore, Taylor has recognized a group of experts in place of a foreman and has distinguished between mental and physical work.

According to Taylor, “In this system, management is divided in such a way that each person has to do minimum work. Therefore, they are divided into smallest processes as possible, so that the work of the person is limited to only one specific activity. The main characteristic of this system of organization is that every worker is related to the management only through the officer, who orders him to perform various activities.

In functional organization, authority does not run vertically like in line organization. In functional organization, every work is divided into many small parts. each small part of the work

A person with specific knowledge (Specialist) is appointed. While creating departments in a functional organization system, care is also taken that no work is left which is not assigned to any department. In this system a person

Advantages of Functional Organization – Its benefits or qualities are as follows –

1. Specialization—— Mr. Taylor has told that the biggest advantage of this system is that every work is completed under the supervision of experts and the services of experts are available to every worker at any time. Each worker works under the supervision of eight bosses. Thus this system is based on the principle of specialization.

2. Flexibility: Expansion and contraction of the organization is easy. When work increases, new units are opened for sales and sales and when work decreases, units can be reduced without any change.

3. Efficiency – Since managers are experts in their field of work, every work in the organization is done with maximum efficiency.

4. Economy in operation – Every machine and equipment, which is related to work, is in one department, due to which they are used optimally.

5. Easy Training – Every person employed in the organization works in the same way. The production person does the work of production and the sales person does the work of selling. In this way, it is easier to train him and it also takes less time.

6. Unity of Efficiency – The work of each unit or department impacts the entire organization due to which each department keeps pace with each other and there is uniformity in the work. 

7. Competition – Through functional organization, even a small organization can compete with a big organization by paying special attention to the variety of production and making sales arrangements. 

8. Research – Appointment of experts encourages research. 

Disadvantages of Functional Organization – Its disadvantages or disadvantages are as follows-

1. Difficulty in coordination: Difficulty in coordination arises because it is not easy for the management of various tasks to agree on a definite objective.

2. Discipline problem: If the manager asks an employee to do some other work as the work increases, then that employee ignores that work by not considering it as his work and a problem of discipline arises which is often seen in government industries. Is available. 

3. Difficulty in fixing responsibility: In case of failure, everyone tries to hold everyone responsible and it becomes difficult to fix responsibility. Due to Vikram’s failure, the production manager is blamed by citing shortage of goods and he is at fault. This puts the onus on the manager and blames the bad material. 

4. Non-cooperation- Achievement of the objective of the organization depends on the cooperation of various managers. The function of production depends on finance and sales, the function of sales depends on production and the function of finance depends on sales and production. In the race to produce more output, every manager does not give his best to others.

5. Differences among managers – Every manager considers his department the most important. This self-praise is the root of conflict.

6. Not suitable for a company producing many goods: It is not suitable for an organization producing many goods because no manager can pay enough attention to other goods.

Suitability – Functional organization is suitable for those business organizations which do production and sales on a large scale. This type of organization is based on specialization.

Q.9. What is line organization? Describe its advantages and disadvantages. (What is Line Organization? Mention its advantages and disadvantages.)

Ans. Line Organization – This is the oldest and simplest method of organization, which has been called by many names by modern management writers. Like military organization, hierarchical organization, departmental organization, straight and vertical organization, these are called military organizations because the army is organized on this basis. Every order in the army is given by the supreme officer, General. 

Every order in the army is given by the supreme officer General and that order reaches the soldier through Colonel, Major, Captain, Lieutenant etc. Similarly, in industry, the orders of the general manager pass through various department heads and foremen and reach the workers. The characteristic of line organization is the direct transmission of authority and orders from the highest authority through various levels to the lower levels.

Characteristics – The main characteristics of line organization are as follows – 

1. Orders go from top to bottom and requests and responsibilities go from bottom to top.

2. The area of ​​work of all the officials of the organization is fixed.

 3. Departmental heads have complete independence from their department. 

4. Orders are given only to subordinate officers without leaving any authorized link from a higher authority. 

5. The number of subordinates under a superior officer is limited. 

6. There is coordination between different departments. 

7. This method is simple and oldest. Types of Line Organization – There are two types of line organization which are as follows –

1. Pure Line Organization – Pure line organization only where

It is found where the activities of every person at some level are similar. Classification of activities is done only for the convenience of control. At higher levels, every person has to work in almost the same manner. In practice, it is difficult to achieve pure line organization because there is lack of uniformity in all activities.

2. Departmental Line Organization – Within the departmental organization, the organization of the organization is divided into different departments. While creating departments, uniformity in functions is kept in mind. Each department is complete in itself. Higher officers in each department bring coordination. Departments are so large that there are many assistants to assist the department heads. It is called order or order (scalar) or soldier.

Also called (Military) organization. Advantages of Line Organization The advantages of line organization are as follows-

1. Simple – This method is the simplest and oldest. It is easy to understand the level of its line-relationship functions.

2. Discipline – Just as there is discipline in the army, similarly there is discipline in this system also. Subordinates have to completely follow the orders of their superiors. 

3. Responsibility – Due to the clear division between rights and responsibilities in the organization, the guilty employee is held responsible.

4. Elasticity – Changes can be made in this system as per the need.

5. Convenience in taking decisions (Quick Decisions) – Since there is one person who takes decisions, there is no delay in taking decisions and necessary decisions are taken quickly from time to time.

Disadvantages of line organization – Its disadvantages or disadvantages are as follows- 

1. Inefficient Working – The biggest drawback in this organization is that the success of the enterprise depends on the ability of one person (General Manager), if the General Manager is inefficient then the organization will never be able to progress.

2. Lack of Specialization – Only one person does all the work. May not be an expert in. In the present time, this organization will lag behind in the race of specialization.

3. Difficulties in Working – The biggest drawback of this organization is that all the orders and information run from top to bottom. If ever a wrong decision is taken from above, the officers below will never be able to amend it. Sometimes the suggestions given by the lower officers are also very important.

4. Importance of Foreman – Absence of foreman is harmful for the organization because in his absence the entire work becomes disorganized. 

5. Dictatorship – In this system the senior officer is the supreme authority. Is. Thus, superiors and foremen sometimes have orders to follow. Becomes mandatory for workers.

Suitability: Many small business organizations are organized in this manner. This format is also used exclusively in sub-departments of large organizations. 

It is considered suitable in the following areas-

1. When the work area is limited,

2. The number of employees should be limited; 

3. Where specification is not required; 

4. Where employees are disciplined.

Q. 10. Explain line and staff organization. Why is it considered better than line organization? (Describe the Line and Staff Organization. Why is it

considered better than Line Organization?) Ans. Line and Staff Organization: Due to increasing business complexities, Line Organization proved unsuitable. And to remove the defects of line organisation, ‘Line and Staff Organisation’ was born. 

In this format of organization there would be some special staff to advise the officers. Are. In this organization also, the authority flows in a straight line from top to bottom, but for each work a specific person is appointed who gives special advice to the officers in their work. 

But keep in mind that accepting or not accepting the advice of a specific staff depends entirely on the wish of the officer.

Whether he accepts it or not. Mooney has divided the services provided by the staff into three parts –

1, informative; 

2, Advisory: 

3. Supervisory.

Characteristics – It has the following symptoms-

1. In this, rights and responsibilities flow in a straight line, 

2. In this, the workload of line officers becomes lighter, 

3. Decisions are more concrete, 

4. In this, the line officer is not bound to accept the opinion of the staff employees.

Advantages – Its benefits or properties are as follows-

1. Expert advice – This is a very important advantage of line and staff organization. In such an organization, advice from experts is always available and in times of any crisis or confusion, special benefit can be taken from the important advice of experts.

 2. Encouragement to research – Experts do not need to pay attention to every aspect. They keep doing research on their subject. When important research is done, it is told to the line managers in the form of advice, which benefits the organization and due to more profit to the organization, it encourages research work and new research keeps happening every day.

3. Economic production – Saving method develops. After research some method of saving will be found. For example, if an organization does production work, then its experts will always keep researching on how the production cost of the product can be reduced so that savings can be achieved in production. 

4. Benefits of specialization- In this, the work of doing and thinking is separate. Line officers do the work and staff officers do the thinking and get specialization in their respective fields due to which they get the benefits of specialization.

Disadvantages – Line and staff organization also has some disadvantages, which are as follows-

1. Discord between the two – There is always a fight between line and staff officers. Because first of all their rights are unclear, then every staff officer wants that his advice must be followed, otherwise what is the importance of it, which leads to jealousy and discord among them.

2. Artificial decisions – Staff officers are not aware of the actual condition of the factory and office and give suggestions only after listening to the facts related to the problem, which is not completely correct. The decisions given by them are far from reality. 

3. Excessive dependence on experts: The managers of the organization take every task on the advice of experts and

They become accustomed to getting things done through service due to which, during their absence, the managers of the organization find it difficult to take appropriate decisions and the organization is not efficient. 

4. Lack of direct responsibility – The experts of the organization do not have direct responsibility, due to which they do not take special care in giving advice and if any manager comes to ask for their opinion, then they give advice, otherwise they do not try to find and solve the problems themselves. Do. 

5. Expensive – There is huge expenditure on the services of experts. The experts appointed by the organization get huge salaries and other allowances, due to which the organization has to spend heavily on them and if they are not used properly then they become an unnecessary burden on the organization.

FAQs

Q.Define rights. (Define Authority) 

Ans. Authority is the key to managerial work. If there is no authority then the manager ceases to be a manager. According to Koontz and O’Donnell, “Rights refer to legal or proprietary powers.” In other words, “it is the right to give orders or to act.”

Q. Give the meaning and definition of responsibility.

Ans. Responsibility: Responsibility means the performance of one’s duty by a person. When a higher authority gives orders to do work, then doing the work as per his orders is called responsibility. George R. According to Terry, “Responsibility is the obligation of a person under which he should complete the tasks assigned to him to the best of his ability.” Responsibilities cannot be transferred.

NCERT Solutions for Class 12 Commerce Stream


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