Business Studies 4 Marks Question

Advantages of divisional structure are as follows :
(i) Product specialisation helps in the development of varied skills.
(ii) It helps in the fixation of responsibility as divisional heads are accountable for profits, revenues and costs related to their departments.
(iii) It promotes flexibility and initiative because each division functions as an autonomous unit which leads to faster decision-making.
(iv) It facilitates expansion and growth as a new division can be added without interrupting the existing -operations.

NOTE : Under the divisional structure, an organisation is divided into different divisions or units on the basis of products or geographical area.

1. Benefits of specialisation: Organising leads to a systematic allocation of jobs amongst the work force. This reduces the workload as well as enhances productivity because of the specific workers performing a specific job on a regular basis.
2. Clarity in working relationships: The establishment of working relationships clarifies lines of communication and specifies who is to report to whom. This removes ambiguity in transfer of information and instructions.
3. Optimum utilization of resources: Organising leads to the proper usage of all material, financial and human resources. The proper assignment of jobs avoids overlapping of work and also makes possible the best use of resources. Avoidance of duplication of work helps in preventing confusion and minimising the wastage of resources and efforts.
4. Effective administration: Organising provides a clear description of jobs and related duties. This helps to avoid confusion and duplication. Clarity in working relationships enables proper execution of work. Management of an enterprise thereby becomes easy and this brings effectiveness in administration.

1. It leads to faster spread of information as well a quick feedback.
2. It fulfills the social needs of the members.
3. It contributes towards fulfillment of organisational objectives by compensating for inadequacies in the formal organisation.

1. It leads to spread of rumours.
2. It may lead to resistance to change.
3. It pressurizes members to conform to group expectations which may be against organisational interest.

1. Organising
2. Any one of the following lines:

1. “They identified the following main activities which they have to perform”.

2. “In order to facilitate the work they thought that four managers should be appointed to look after.

3. Steps in the process of organising:

1. Identifying and dividing the work into manageable activities.
2. Departmentalisation/ departmentation where activities of a similar nature are grouped together.
3. Assignment of duties to job positions.
4. Establishing reporting relationships so that each individual knows who he has to take orders from and to whom he is accountable.

1. Identification and Division of Work: First step in organising is to identify and divide the total work to be done into specific activities. The activities are then grouped into jobs such that each job consists of certain similar tasks, which can be carried out by an individual. Such division of work facilities specialisation of work and skills.
2. Grouping Jobs and Departmentation: The second step in organising is to combine or group similar or related jobs into large units called departments, divisions or sections. This grouping process is called departments, division or sections. This grouping process is called departmentation.
3. Assignment of Duties: It is necessary to allocate work to various employees. Once departments have been formed, each of them is placed under the change of an individual. Jobs are then allocated to the member of each department according to their skills and competences.
4. Establishing Authority Relationship: The last step of organising process is creating authority relationship among the job holders. Various members are linked by authority responsibility relations through the process of organising an authority structure is created.

1. Identification and division of work: The first step in the process of organising involves identifying and dividing the work that has to be done in accordance with previously determined plans.
2. Departmentalisation: Once work has been divided into small and manageable activities then those activities which are similar in nature are grouped together. Such sets facilitate specialisation. This grouping process is called departmentalisation.
3. Assignment of duties: It is necessary to define the work of different job positions and accordingly allocate work to various employees. Once departments have been formed, each of them is placed under the charge of an individual.
4. Establishing reporting relationships: Merely allocating work is not enough. Each individual should also know who he has to take orders from and to whom he is accountable. The establishment of such clear relationships helps to create a hierarchal structure and helps in coordination amongst various departments.

1. Decentralisation is delegation of authority throughout the organization.
2. Importance of decentralization:

1. Develops initiative among subordinates: Decentralisation helps to promote self-reliance and confidence amongst the subordinates. A decentralisation policy helps to identify those executives who have the necessary potential to become dynamic leaders.
2. Develops managerial talent for the future: Formal training plays an important part in equipping subordinates with skills that help them rise in the organisation but equally important is the experience gained by handling assignments independently.
3. Facilitates growth: Decentralisation awards greater autonomy to the lower levels of management as well as divisional or departmental heads. This allows them to function in a manner best suited to their department and fosters a sense of competition amongst the departments.

1. It is easier to fix responsibility since mutual relationships are clearly defined.
2. There is no ambiguity in the role that each member has to play as duties are specified. This also helps in avoiding duplication of effort.
3. Unity of command is maintained through an established chain of command.
4. It leads to effective accomplishment of goals by providing a framework for the operations to be performed and ensuring that each employee knows the role he has to play.
5. It provides stability to the organisation. This is because behavior of employees can be fairly predicted since there are specific rules to guide them.

1. Organising.
2. Any one of the following lines.

3. Steps in the process of organising:

1. Identifying and dividing the work into manageable activities.
2. Departmentalisation/ departmentation where activities of a similar nature are grouped together.
3. Assignment of duties to job positions.
4. Establishing reporting relationships so that each individual knows who he has to take orders from and to whom he is accountable.

1. Deliberately and consciously entrusting the task that leads to responsibility.
2. Granting of sufficient powers which lead to authority.
3. Developing a mechanism to see that the work is done as per expectation which leads to accountability.

1. Occupational specialisation: Activities of a similar nature are grouped together in departments. Employees perform the same functions repeatedly. Thus, it leads to occupational specialisation.
2. Easy training: It is easy to train employees as the focus is on a limited range of skills.
3. Better control and coordination: There is better control and coordination within a department as similar tasks are performed within the department.

1. Identifying and dividing the work: As a first step, various activities in the organisation are identified and divided as per the pre-defined plans and objectives.
2. Creating departments: Next, the activities of a similar nature are grouped together in different departments. This is done to promote specialisation.
3. Assigning duties: Once, the departments are created, the next step is to assign the roles and responsibilities to the personnel as per their skills and abilities.
4. Establishing relationships: In this step, a clear hierarchical structure is established such that every individual clearly knows the various superior-subordinate relationships in the organisation.

1. Clear definition of working relationships: Under organising, the hierarchical structure in the organisation is clearly established, thereby avoiding any ambiguity in the transfer of instructions.
2. Less duplication of work: As various activities are properly assigned to different personnel, duplication of work is minimised.
3. Better coordination: Under organising, activities of a similar nature are grouped together in different departments. This ensures better coordination and harmony.
4. ncreased growth and expansion: Through proper organising, an enterprise can expand its business operations and deviate from the traditional norms in a smooth and better manner.

1. The Planning and Organising functions of management are being discussed.
   Planning is deciding in advance what to do, how to do, when to do and who has to do it. It is one of the basic managerial functions. Thus, it involves setting objectives and developing an appropriate course of action to achieve these objectives. Organising is the process of defining and grouping the activities of the enterprise and establishing authority relationships among them.
2. The importance of the planning function of management is described below:
   • Planning provides directions: The well defined plans act as a guide for deciding what course of action should be taken to attain the organisational goals.
   • Planning reduces the risk of uncertainty: Planning helps to reduce the risk of uncertainty arising due to the dynamic nature of business environment as it enables a manager to anticipate and meet changes effectively.
     The importance of the organizing function of management is described below:
   • Benefits of specialisation: Organising leads to a systematic allocation of jobs amongst the work force. This not only helps to reduce the workload of the employees but also leads to increased productivity. This is because of the fact that specific employees are assigned specific job on a regular basis which leads to specialisation.
   • Clarity in working relationships: The process of organising leads to establishment of clear cut reporting relationships. This helps in developing a hierarchical order thereby enabling the fixation of responsibility and specification of the extent of authority to be exercised by an individual.
3. The two values that Trakashay Public School’ wants to communicate to society are:
   • Trust
   • Participation

1. Job design: Manager must specify what activities and related tasks are contained in each of these jobs.
2. Departmentation: Jobs are to be grouped together to form a department. There may be production, finance and marketing departments.
3. Span of control: The manager is made responsible for coordinating a particular number of jobs, which is called span of control. This also clarifies the chain of command and establishes who will report to whom.
4. Delegation of authority: As jobs have been assigned, then some degree of authority is required to get the job completed.

1. Based on Formal Organisation: This is based on formal organisation where people also have informal relations. (It means first of all the formal organisation is established and then informal organisation is created out of it).
2. It has no Written Rules and Procedures: In this organisation, there are no written rules and procedures to govern inter-relationship. But there are group norms which have to be observed.
3. Independent Channels of Communication: In this organisation relations among different people are not defined because a person at the lowest rank can have direct contact with the person at the highest level. The flow of communication cannot be specified.