CH 7 --Organising

L-7- ORGANISING

INTRODUCTION

Organizing is a fundamental function of management that involves arranging and structuring resources, tasks, and people within an organization to achieve its objectives efficiently and effectively. It is the process of designing a framework that enables the smooth execution of plans and facilitates coordination among various individuals and departments.

INTRODUCTION

Organizing plays a crucial role in the overall management process and is often considered the backbone of any successful organization. It encompasses various activities such as allocating resources, defining roles and responsibilities, establishing reporting relationships, creating communication channels, and designing workflows.

The primary goal of organizing is to create a coherent and logical structure that enables individuals and departments to work together harmoniously toward achieving organizational goals. By organizing resources and activities, organizations can optimize productivity, streamline operations, reduce duplication of efforts, and enhance coordination and collaboration.

KEY ASPECTS OF ORGANIZING

Division of Work: Organizing involves breaking down tasks and responsibilities into manageable units and assigning them to individuals or groups. This division of work ensures that each person knows their role and contributes to the overall objectives of the organization. It helps in specialization, improves efficiency, and minimizes confusion or overlap.

Establishing Relationships: Organizing establishes reporting relationships and defines the hierarchy and authority structure within an organization. It determines who reports to whom, the flow of information, and the decision-making processes. Clear lines of communication and well-defined relationships enable effective coordination and ensure that everyone is aware of their roles and responsibilities.

Creating Departments or Units: Organizing involves grouping individuals with similar skills, expertise, or functions into departments or units. This departmentalization allows for better coordination, efficient resource allocation, and specialized focus within each unit. Departments can be organized based on different criteria such as function, product, geography, or customer type.

Delegation of Authority: Organizing involves delegating authority and empowering individuals or teams to make decisions within their designated roles. Effective delegation ensures that decision-making is decentralized, promotes employee engagement, and facilitates faster responses to challenges and opportunities. It also helps in developing and nurturing future leaders within the organization.

Designing Workflows: Organizing includes designing workflows and establishing the sequence of activities required to complete tasks or projects. This involves identifying interdependencies, establishing processes, and setting up systems that ensure smooth coordination and minimize bottlenecks. Well-designed workflows optimize efficiency and enhance productivity.

CONCLUSION

Organizing is a critical management function that helps in structuring resources, establishing relationships, and creating an efficient framework within an organization. By effectively organizing, businesses can maximize productivity, optimize resource allocation, enhance coordination, and adapt to changing circumstances more efficiently. It provides the necessary foundation for the successful execution of plans and the achievement of organizational goals.

MEANING AND DEFINITION OF ORGANISING

Organizing, in the context of management, refers to the process of arranging resources, tasks, and people within an organization in a structured manner to achieve specific goals and objectives. It involves creating a coherent framework that outlines the relationships, roles, and responsibilities of individuals, departments, and functions within the organization.

Organizing encompasses various activities and decisions related to the allocation of resources, establishment of reporting relationships, creation of departments or units, delegation of authority, and design of workflows. These activities are aimed at achieving efficiency, coordination, and effectiveness in the organization's operations.

The purpose of organizing is to create an orderly structure that enables individuals to work together smoothly, eliminates redundancy and confusion, and facilitates the achievement of organizational goals. It provides clarity regarding roles and responsibilities, establishes communication channels, and ensures that tasks are carried out in a logical sequence.

In summary, organizing is the management function that involves structuring and arranging resources, tasks, and people within an organization to optimize efficiency, coordination, and effectiveness. It establishes the framework necessary for individuals and departments to work together towards achieving common objectives.

CHARACTERISTICS OF AN ORGANISATION

An organization, whether it is a business, nonprofit, government agency, or any other type, possesses several key characteristics that define its nature and functioning. Here are some common characteristics of an organization:

Goal Orientation: Organizations are created with specific goals and objectives in mind. These goals serve as a guiding force for the organization's activities and provide a sense of direction. All efforts and resources are focused on achieving these goals, and the organization's structure and processes are designed to support their attainment.

Structure and Hierarchy: An organization typically has a formal structure that outlines the relationships, roles, and reporting lines within the entity. It establishes the chain of command, authority levels, and the flow of information. Organizational structures can vary, such as hierarchical, matrix, flat, or networked, depending on the nature and size of the organization.

Division of Labor: Organizations divide tasks and responsibilities among individuals or groups to achieve efficiency and specialization. This division of labor allows people to focus on specific areas of expertise and contributes to increased productivity. Specialization can occur based on functions, departments, or specific roles within the organization.

Coordination and Communication: Effective coordination and communication are essential for the smooth functioning of an organization. They ensure that different parts of the organization work together harmoniously towards common goals. Communication channels, both formal and informal, facilitate the exchange of information, instructions, and feedback among individuals and departments.

Authority and Responsibility: Organizations have a system of authority and responsibility that defines decision-making powers and accountability. Authority is delegated to individuals or positions within the organization, empowering them to make decisions and take actions. With authority comes responsibility, where individuals are accountable for their actions and the outcomes of their decisions.

Resource Allocation: Organizations allocate and manage resources, including human resources, financial capital, technology, and physical assets, to support their operations. Efficient resource allocation involves determining priorities, optimizing utilization, and ensuring that resources are aligned with the organization's goals and strategies.

Adaptability and Change: Organizations operate in dynamic environments and must be adaptable to change. They need to respond to internal and external factors, such as market trends, technological advancements, and regulatory changes. Organizations that can adapt and innovate are more likely to thrive in a constantly evolving landscape.

Organizational Culture: Organizational culture refers to the shared values, beliefs, norms, and behaviors that define the organization's identity and shape its working environment. Culture influences how individuals interact, make decisions, and approach their work. A strong and positive organizational culture fosters employee engagement, collaboration, and a sense of belonging.

These characteristics collectively contribute to the identity, structure, and functioning of an organization. They shape how the organization operates, interacts with stakeholders, and pursues its goals.

STEPS IN THE PROCESS OF ORGANISING

The process of organizing involves several steps to create a structured framework within an organization. While the specific steps may vary depending on the organization and its needs, here is a general outline of the process of organizing:

Identify Goals and Objectives: Clearly define the goals and objectives of the organization. This provides a clear direction for the organizing process and helps determine the necessary structure and resources.

 

Determine Tasks and Activities: Identify the tasks and activities required to achieve the organizational goals. Break down the goals into specific actions and determine the necessary resources, skills, and responsibilities for each task.

Grouping and Departmentalization: Group tasks and activities into logical categories or departments. This could be based on functions (e.g., marketing, finance, (operations), products, customer segments, geographical regions, or a combination of factors. Departmentalization helps create focused units within the organization.

Establish Reporting Relationships: Define the reporting relationships and hierarchy within the organization. Determine the chain of command, decision-making authority, and communication flow. Clarify who reports to whom and establish clear lines of communication and accountability.

Delegate Authority and Assign Responsibilities: Delegate authority and assign responsibilities to individuals or positions within the organization. Clearly define the decision-making powers and empower individuals to take ownership of their assigned tasks. Ensure that the authority and responsibility align with each other.

Develop Job Descriptions: Create job descriptions that outline the roles, responsibilities, and required skills for each position within the organization. Clearly define the expectations, duties, and qualifications for each role to guide recruitment, selection, and performance evaluation processes.

Establish Communication Channels: Set up effective communication channels to facilitate information flow within the organization. This includes both formal channels such as meetings, reports, and emails, as well as informal channels that encourage collaboration and sharing of knowledge.

Allocate Resources: Determine the allocation of resources such as human resources, financial capital, technology, and physical assets to support the organizational activities. Ensure that resources are allocated effectively and efficiently to meet the needs of each department and task.

Design Workflows and Processes: Establish workflows and processes that define the sequence of tasks and activities required to achieve specific objectives. Determine how tasks will flow between departments or individuals, ensuring a logical and efficient progression.

Monitor and Adjust: Continuously monitor and evaluate the organizing structure and processes. Identify any gaps, inefficiencies, or areas for improvement and make necessary adjustments. Regularly review the organizational structure to ensure it remains aligned with the organization's goals and evolving needs.

It's important to note that organizing is an ongoing process that may require modifications as the organization grows, adapts to change, or encounters new challenges. Flexibility and continuous evaluation are key to maintaining an effective organizational structure.

PRINCIPLES OF ORGANISING

Organizing principles provide guidance and a framework for creating effective organizational structures and processes. They help in establishing a coherent and efficient system that supports the achievement of organizational goals. While different experts may emphasize different principles, here are some commonly recognized principles of organizing:

Unity of Objective: This principle states that all activities and efforts within an organization should be directed towards a common objective or set of objectives. It ensures that the organizing process aligns with the overall purpose of the organization and that all departments, teams, and individuals work in harmony towards shared goals.

Division of Work: The principle of division of work suggests that tasks and responsibilities should be divided and assigned to individuals or groups based on their skills, expertise, and specialization. By dividing the work, organizations can take advantage of specialization, which leads to increased efficiency and productivity.

Span of Control: The span of control principle emphasizes that each manager or supervisor should have a reasonable number of subordinates to effectively supervise and manage. It helps in maintaining clear lines of communication, efficient decision-making, and proper coordination. A manageable span of control allows for effective supervision and reduces the chances of overload or neglect.

Scalar Principle: The scalar principle, also known as the chain of command, establishes a clear hierarchy of authority within an organization. It defines the levels of management and the formal lines of communication and reporting. The scalar principle ensures that there is a clear flow of authority, accountability, and decision-making from top management down to the lowest levels.

Coordination: Coordination is a fundamental principle of organizing. It emphasizes the need to synchronize and harmonize the efforts of different individuals, departments, and functions within an organization. Effective coordination ensures that various parts of the organization work together towards common goals, minimizes duplication of efforts, and promotes synergy.

Balance and Flexibility: The principle of balance suggests that the organizing process should strive for a balance between centralization and decentralization, specialization and generalization, and formalization and flexibility. It recognizes the need for adaptability and the ability to respond to changing internal and external conditions.

Delegation of Authority: The principle of delegation of authority emphasizes empowering individuals at various levels within the organization to make decisions and take responsibility for their assigned tasks. Delegation enhances efficiency, employee engagement, and development, while relieving top-level managers from excessive decision-making burdens.

Unity of Command: The principle of unity of command states that each employee should have only one direct supervisor to avoid conflicting instructions and confusion. It helps maintain clear lines of authority, reduces conflicts, and ensures clarity in reporting relationships.

Efficiency and Effectiveness: Organizing principles should aim to achieve efficiency and effectiveness in the allocation and utilization of resources. The organization's structure and processes should optimize the use of resources to achieve desired outcomes and deliver value to stakeholders.

Continuity: Organizing principles should support the organization's long-term sustainability and continuity. They should allow for the organization to adapt to changes, manage transitions, and maintain stability and consistency over time.

These organizing principles provide a foundation for designing effective organizational structures, decision-making processes, and coordination mechanisms. Organizations can apply these principles while considering their specific goals, industry, culture, and other contextual factors to create a structure that best suits their needs.

IMPORTANCE\BENEFITS OF ORGANISING

Organizing is a critical function of management that brings numerous benefits and importance to an organization. Here are some key reasons why organizing is important:

Clarity and Direction: Organizing helps establish clarity and direction within an organization. It sets clear goals, defines roles and responsibilities, and creates a structured framework that guides employees' actions. This clarity ensures that everyone understands their tasks and how they contribute to the overall objectives, which reduces confusion and enhances productivity.

Efficiency and Productivity: Effective organizing enhances efficiency and productivity by optimizing the allocation and utilization of resources. It ensures that resources, including human resources, time, and finances, are allocated effectively to achieve the desired outcomes. Organized workflows, clear processes, and coordination mechanisms eliminate duplication of efforts and streamline operations.

 

Coordination and Collaboration: Organizing promotes coordination and collaboration among individuals, teams, and departments. By clearly defining reporting relationships, establishing communication channels, and designing workflows, organizing facilitates the flow of information and promotes effective collaboration. This coordination reduces conflicts, enhances synergy, and enables seamless teamwork.

Specialization and Expertise: Organizing allows for the division of work based on individuals' skills, knowledge, and expertise. By assigning tasks to individuals with specialized knowledge, organizations can benefit from increased efficiency, higher quality outcomes, and faster completion of tasks. Specialization enables employees to focus on their areas of expertise, leading to improved performance and productivity.

Effective Decision Making: Organizing establishes clear lines of authority and delegation of authority, which enables effective decision-making processes. It empowers individuals at various levels to make decisions within their roles and responsibilities, leading to faster responses to challenges and opportunities. Well-defined decision-making processes enhance organizational agility and responsiveness.

Adaptability and Change Management: Organizing helps organizations adapt to changes in the internal and external environment. By having a structured framework, organizations can quickly adjust roles, responsibilities, and processes to accommodate new challenges or opportunities. Flexibility and adaptability in organizing ensure that organizations can respond effectively to changing market conditions, technological advancements, and customer demands.

Growth and Scalability: Effective organizing supports organizational growth and scalability. As organizations expand, organizing helps in managing increased complexity, establishing new departments or functions, and ensuring efficient resource allocation. It enables organizations to scale their operations without losing efficiency or effectiveness.

Employee Engagement and Satisfaction: Organizing that provides clarity, well-defined roles, and opportunities for skill development enhances employee engagement and satisfaction. Clear organizational structures and career paths give employees a sense of purpose and direction, leading to higher motivation and job satisfaction. Employees are more likely to be productive and committed when they understand their roles and see opportunities for growth within the organization.

Effective Control and Monitoring: Organizing facilitates effective control and monitoring of organizational activities. Clear reporting relationships, accountability mechanisms, and performance measurement systems help managers monitor progress, identify deviations, and take corrective actions. Organizing supports effective monitoring, evaluation, and feedback processes that contribute to continuous improvement and goal attainment.

In summary, organizing is important for organizations as it brings clarity, efficiency, coordination, adaptability, and growth. It establishes a structured framework that enables organizations to utilize resources effectively, promote collaboration, and achieve their goals successfully.

STRUCTURE OF ORGANISATION

The structure of an organization refers to its formal framework that outlines the relationships, roles, and responsibilities of individuals, departments, and functions within the entity. It determines how tasks are divided, coordinated, and controlled to achieve organizational objectives. The structure provides clarity on reporting relationships, authority levels, communication channels, and decision-making processes. Here are some common types of organizational structures:

Functional Structure: This is the most traditional and common type of organizational structure. It groups employees based on their functional areas or specialized skills, such as marketing, finance, operations, human resources, etc. Each department is headed by a functional manager who oversees the activities and resources within that area. This structure allows for specialization, clear career paths, and expertise development.

Divisional Structure: In a divisional structure, the organization is divided into self-contained divisions or business units based on products, geographic regions, customer segments, or projects. Each division operates as a separate entity with its own functional areas, such as marketing, finance, and operations, and has its own management team responsible for decision-making. This structure allows for greater autonomy and flexibility in responding to unique market conditions.

Matrix Structure: A matrix structure combines functional and divisional structures, where employees are grouped by both function and project or product teams. It allows individuals to work on specific projects or products while still belonging to a functional department. This structure promotes cross-functional collaboration, information sharing, and efficient resource utilization. However, it can sometimes create complex reporting relationships and dual lines of authority.

Flat Structure: A flat structure has fewer hierarchical levels and a broader span of control. It promotes decentralized decision-making, open communication, and a flexible work environment. In a flat structure, there is less emphasis on formal titles and more on empowering employees to take ownership and collaborate. It is often found in small organizations or startup environments.

Hierarchical Structure: A hierarchical structure is characterized by multiple levels of management with clear lines of authority and control. It follows a top-down approach, where decisions and instructions flow from top-level management to lower levels. Each level of management has different roles and responsibilities, and employees report to their immediate superiors. This structure provides clear reporting relationships, facilitates control and coordination, but can sometimes be slow in decision-making and communication.

Network Structure: A network structure is a flexible and decentralized form of organization that relies on strategic alliances, partnerships, and outsourcing. It emphasizes collaboration with external entities to leverage specialized expertise and resources. This structure allows organizations to adapt quickly, access global talent, and focus on core competencies while relying on external partners for other functions.

It's important to note that organizations can have a combination of structures or tailor their structure to suit their specific needs. The chosen structure should align with the organization's goals, culture, industry, and size. The structure of an organization plays a crucial role in defining its operating model, communication flows, decision-making processes, and overall effectiveness in achieving its objectives.

TYPES OF ORGANISATONAL STRUCTURE

There are several types of organizational structures that organizations can adopt based on their needs, goals, and industry. Here are some common types of organizational structures:

Functional Structure: This structure groups employees based on their functional areas or specialized skills, such as marketing, finance, operations, human resources, etc. Each department operates independently, with a department head overseeing the activities and resources within that area. Functional structures promote specialization, clear career paths within functions, and efficient coordination within each department.

Divisional Structure: In a divisional structure, the organization is divided into self-contained divisions or business units based on products, geographic regions, customer segments, or projects. Each division operates as a separate entity with its own functional areas, such as marketing, finance, and operations. Divisional structures allow for greater autonomy, flexibility, and focus on specific market needs or product lines.

Matrix Structure: A matrix structure combines elements of both functional and divisional structures. It involves the formation of cross-functional teams or project teams that work on specific projects or products while still belonging to their respective functional departments. This structure promotes collaboration, information sharing, and efficient resource utilization. Employees have dual reporting relationships, both to their project manager and functional manager.

Team-Based Structure: In a team-based structure, the organization is organized around self-managed teams that have a high degree of autonomy and responsibility. These teams are responsible for a specific function, project, or customer segment and have decision-making authority. Team-based structures foster collaboration, innovation, and employee empowerment.

Network Structure: A network structure is a flexible and decentralized form of organization that relies on strategic alliances, partnerships, and outsourcing. It emphasizes collaboration with external entities to leverage specialized expertise and resources. Network structures allow organizations to adapt quickly, access global talent, and focus on core competencies while relying on external partners for other functions.

Flat Structure: A flat structure has fewer hierarchical levels and a broader span of control. It promotes decentralized decision-making, open communication, and a flexible work environment. In a flat structure, there is less emphasis on formal titles and more on empowering employees to take ownership and collaborate. Flat structures are often found in small organizations or startup environments.

Hybrid Structure: Hybrid structures are a combination of different types of organizational structures. Organizations may adopt a mix of functional, divisional, or matrix structures to suit their specific needs. Hybrid structures allow organizations to benefit from the advantages of multiple structures while managing their limitations.

It's important to note that organizations can choose and adapt their structure based on their unique circumstances. The chosen structure should align with the organization's goals, culture, industry, and size. The structure of an organization plays a crucial role in defining its operating model, communication flows, decision-making processes, and overall effectiveness in achieving its objectives.

Disadvantages of functional

While functional structures offer several advantages, they also have some potential disadvantages. Here are some common disadvantages of functional structures:

 

Communication Barriers: Functional structures can create communication barriers between departments or functional areas. Since employees are grouped based on their expertise, there can be a tendency for departments to work in silos and have limited interaction with other areas of the organization. This can hinder effective collaboration, information sharing, and coordination across functions.

Lack of Flexibility and Responsiveness: Functional structures can be less flexible and responsive to changes in the external environment. Decisions often need to go through multiple layers of management, which can slow down the decision-making process and inhibit quick responses to market changes or customer needs. Functional structures may struggle to adapt to rapidly changing industries or dynamic market conditions.

Difficulty in Cross-Functional Collaboration: In functional structures, employees may primarily identify with their functional department rather than the organization as a whole. This can create challenges in fostering cross-functional collaboration and cooperation. Different departments may have different priorities, goals, and approaches, which can lead to conflicts or difficulties in aligning efforts towards common objectives.

Limited Focus on Overall Organizational Goals: Functional structures tend to focus on functional goals and objectives rather than the broader organizational goals. Employees may prioritize their functional responsibilities over the overall success of the organization. This can result in a lack of alignment and coordination among different departments, potentially hindering the achievement of organizational objectives.

Duplication of Efforts: Functional structures can sometimes lead to duplication of efforts or redundant activities. Each functional department may have its own resources and capabilities, which can lead to inefficiencies and increased costs. Without proper coordination and communication, there may be a lack of sharing resources or knowledge across departments, resulting in duplication or overlap of work.

Limited Career Development Opportunities: In functional structures, career progression may be limited to vertical growth within the functional area. This can restrict employees' exposure to different aspects of the organization and limit their ability to develop a broader skill set. Employees may feel confined within their functional roles, which can lead to dissatisfaction and hinder overall talent development.

Slow Decision-Making: Due to the hierarchical nature of functional structures, decision-making processes can be slower and more bureaucratic. Decisions may need to go through multiple levels of management for approval, leading to delays and inefficiencies. This can be problematic in situations where quick decision-making is required or in fast-paced industries.

It's important to note that the disadvantages of functional structures can be mitigated or managed through effective communication, cross-functional collaboration mechanisms, and organizational culture that emphasizes the overall goals and objectives of the organization. Additionally, organizations can consider adopting hybrid structures or implementing strategies to overcome the limitations of functional structures while leveraging their advantages.

Divisional structure

The divisional structure is a type of organizational structure in which an organization is divided into self-contained divisions or business units based on products, geographic regions, customer segments, or projects. Each division operates as a separate entity within the organization, with its own functional areas, such as marketing, finance, operations, and human resources. Here are some potential disadvantages of a divisional structure:

Duplication of Efforts: In a divisional structure, each division may have its own set of functional departments. This can result in duplication of efforts and resources across divisions. For example, each division may have its own marketing, finance, and human resources departments, leading to redundant activities and increased costs.

 

Lack of Synergy and Coordination: Divisional structures can sometimes hinder coordination and collaboration between divisions. Each division operates independently and may have its own goals and priorities, which can create a lack of synergy and alignment with the overall objectives of the organization. Communication and coordination challenges may arise when divisions need to work together on cross-divisional projects or initiatives.

Reduced Economies of Scale: With each division operating as a separate entity, there may be a reduction in economies of scale. Shared resources, such as equipment, technology, or expertise, may not be fully utilized across divisions, resulting in higher costs or underutilization of resources. The lack of centralized control and coordination can lead to inefficiencies in resource allocation.

Potential for Internal Competition: In a divisional structure, divisions may compete with each other for resources, budgets, or market share. This internal competition can create conflicts, hinder collaboration, and divert focus from the overall goals of the organization. It can also lead to a silo mentality, where divisions prioritize their own success over the success of the organization as a whole.

Difficulties in Standardization and Consistency: In a divisional structure, there may be challenges in achieving standardization and consistency across divisions. Each division may have its own operating procedures, systems, or policies, which can make it difficult to ensure uniformity in processes or branding. This can affect the organization's ability to deliver consistent products or services to customers.

Potential for Inefficiencies in Support Functions: Certain support functions, such as human resources, finance, or IT, may need to be replicated in each division within a divisional structure. This can lead to inefficiencies and redundancies in these support functions. Coordinating and managing these functions across divisions may require additional resources and effort.

Difficulty in Strategic Alignment: Ensuring strategic alignment across divisions can be a challenge in a divisional structure. Each division may have its own strategic priorities and initiatives, making it important to establish mechanisms for coordinating and aligning divisional strategies with the overall strategic direction of the organization.

Despite these potential disadvantages, the divisional structure offers advantages such as increased focus on specific markets or products, improved responsiveness to local market conditions, and greater autonomy for divisions. The effectiveness of a divisional structure depends on factors such as the organization's industry, size, geographic scope, and the ability to establish effective communication and coordination mechanisms between divisions.

FORMAL AND INFORMAL ORGANISATION

Formal and informal organization are two distinct aspects of an organization's structure and communication patterns. Here's an explanation of each:

Formal Organization:

Formal organization refers to the official and planned structure of an organization. It is based on the formal authority, roles, and responsibilities defined by the management. The formal organization is typically depicted in organizational charts and documented in official policies, procedures, and job descriptions. Key features of the formal organization include:

Defined Structure: The formal organization establishes the hierarchy, reporting relationships, and division of work within the organization. It outlines the flow of authority and communication channels.

Clear Roles and Responsibilities: The formal organization defines the roles and responsibilities of individuals or departments within the organization. It clarifies the job functions, tasks, and reporting relationships to ensure smooth operations and coordination.

Formal Communication Channels: In a formal organization, communication follows predefined channels, such as through official memos, emails, meetings, or reports. It adheres to the established hierarchy and authority structure.

Formal Policies and Procedures: Formal organizations have written policies, procedures, and rules that guide the behavior, decision-making, and operations within the organization. These policies help maintain consistency and standardization.

The formal organization provides stability, clarity, and order to the functioning of the organization. It facilitates coordination, decision-making, and accountability.

Informal Organization:

The informal organization, on the other hand, represents the social structure and relationships that emerge within the formal organization but are not officially defined or documented. It is based on informal interactions, friendships, shared interests, and personal networks among employees. Key features of the informal organization include:

Social Networks: The informal organization is characterized by the informal social networks and relationships that develop among employees beyond the formal structure. These networks can span across departments, levels, and functions.

Informal Communication: Informal communication in the organization occurs through informal conversations, grapevine, social media, and personal interactions. It often bypasses the formal communication channels and can spread information quickly.

Emergent Roles and Leaders: In the informal organization, individuals may assume informal roles and become influential leaders based on their expertise, experience, or relationships. These roles may not be officially recognized but can have a significant impact on decision-making and influence within the organization.

Norms and Culture: The informal organization reflects the shared norms, values, and beliefs that emerge within the social fabric of the organization. It shapes the organization's culture and influences employee behavior and attitudes.

The informal organization plays a vital role in fostering collaboration, innovation, and employee engagement. It can complement or challenge the formal organization by providing alternative communication channels, support systems, and sources of influence.

Both formal and informal organizations coexist within an organization, and understanding their dynamics is crucial for effective management. While the formal organization provides structure and direction, the informal organization contributes to employee satisfaction, social cohesion, and informal problem-solving. Balancing and leveraging both aspects can enhance organizational effectiveness.

 

Multiple Choice Questions:

 

1. What is the primary goal of organizing in management?

a) Maximizing profits

b) Minimizing costs

c) Achieving organizational goals

d) Enhancing employee satisfaction

2. Which of the following activities is NOT part of the organizing function?

a) Allocating resources

b) Defining roles and responsibilities

c) Setting performance targets

d) Establishing reporting relationships

3. What does organizing help organizations achieve?

a) Efficient and effective execution of plans

b) Reduction of competition in the market

c) Increase in market share

d) Elimination of all risks

4. Which of the following is NOT a key aspect of organizing?

a) Division of work

b) Establishing relationships

c) Developing job descriptions

d) Allocating resources

5. The principle of division of work suggests that tasks and responsibilities should be divided based on:

a) Job titles

b) Geographical locations

c) Employee seniority

d) Skills and specialization

6. Which principle of organizing emphasizes the need to synchronize and harmonize efforts within an organization?

a) Unity of objective

b) Division of work

c) Coordination

d) Balance and flexibility

7. Which of the following is NOT a benefit of organizing?

a) Clarity and direction

b) Increased flexibility

c) Efficiency and productivity

d) Coordination and collaboration

8. Which type of organizational structure groups employees based on their functional areas or specialized skills?

a) Divisional structure

b) Matrix structure

c) Functional structure

d) Flat structure

9. What is the advantage of a flat organizational structure?

a) Clear reporting relationships

b) Greater autonomy and flexibility

c) Specialization and expertise

d) Improved coordination and collaboration

 

True-False Questions:

 

1.     Organizing involves arranging and structuring resources, tasks, and people within an organization. (True / False)

2.     The primary goal of organizing is to create a structure that enables individuals and departments to work together towards organizational goals.  (True / False)

3.     Organizing helps optimize productivity, streamline operations, and enhance coordination and collaboration within an organization. (True / False)

4.     Remember, these questions are based on the given paragraph, but you can modify or add more questions based on the specific learning objectives of your lesson. (True / False)

5.      Organizing involves breaking down tasks and responsibilities into manageable units and assigning them to individuals or groups (True / False)

6.     The scalar principle establishes a clear hierarchy of authority within an organization. (True / False)

7.     The principle of delegation of authority focuses on centralizing decision-making at the top level of management. (True / False)

8.     Organizing helps establish clarity and direction within an organization. (True/False)

9.     In a divisional structure, each division operates independently with its own functional areas. (True/False)

10.                        The formal organization is based on the formal authority, roles, and responsibilities defined by the management. (True/False)

 

VERY SHORT ANSWER QUESTIONS

Q.1.State the meaning of informal organisation?

Ans. Informal organization refers to the unofficial social structure and relationships that develop within an organization, influencing communication and interactions among individuals.

Q.2. Enumerate the steps in the process of organizing?

Ans. A.2. The steps in the process of organizing are:

1.     Setting objectives and goals.

2.     Identifying tasks and responsibilities.

3.     Creating a structure and hierarchy.

4.     Allocating resources.

5.     Establishing communication channels.

6.     Coordinating activities.

7.     Monitoring and evaluating progress.

Q.3.What type of relationships are shown by organisation structure?

Ans. The types of relationships shown by organization structure include hierarchical relationships, reporting relationships, functional relationships, and coordination relationships.

Q.4. Name the type of organisation in which-

(a)  Friendly relationships exist among the members

(b) Official relationships exist among the members

Ans. (a) An organization in which friendly relationships exist among the members is often referred to as an "informal organization" or "social organization."

(b) An organization in which official relationships exist among the members is typically called a "formal organization" or "structured organization."

Q.5.Name the organisation which come into existence by mutual relationship?

Ans. organization that comes into existence through mutual relationships is commonly referred to as a "voluntary organization" or "non-profit organization."

Q.6.Explain advantages of formal organisation?

Ans. The advantages of a formal organization include clear hierarchy and authority, defined roles and responsibilities, efficient coordination, effective communication channels, standardized processes, accountability, and easier monitoring and evaluation.

Q.7. Explain two advantages of informal organisation?

Ans. Two advantages of informal organization include enhanced employee morale and job satisfaction, as it fosters social connections and a sense of belonging. It also facilitates the flow of information and knowledge sharing outside of formal channels, leading to increased innovation and problem-solving capabilities.

Q.8. Enumerate two features of functional organisation?

Ans. Two features of functional organization are:

Division of work based on specialized functions: In a functional organization, tasks and responsibilities are grouped based on the functions or areas of expertise. This allows employees to focus on specific areas and develop specialized skills.

Hierarchical structure: Functional organizations typically have a hierarchical structure with clear lines of authority and reporting. Employees report to their respective functional managers, who oversee and coordinate the work within their specific function.

Q.9. Define ‘functional organisation?

Ans. Functional organization is a type of organizational structure where employees are grouped based on their specialized functions or areas of expertise. In this structure, tasks and responsibilities are divided according to different functions such as marketing, finance, operations, human resources, etc. Each function is headed by a functional manager who oversees the work within that specific area. This structure allows for specialization and efficiency within each function, as well as clear lines of authority and reporting.

Q.10. Why does the principle of unity of command not hold good in the case of functional organisation?

Ans. The principle of unity of command does not hold good in the case of functional organization because employees in a functional structure often report to multiple managers or supervisors within their respective functions. Since employees are grouped based on their specialized functions, they may receive instructions and guidance from different functional managers. This means that they may have to work under the authority of multiple supervisors, leading to a potential conflict of commands and confusion. As a result, the principle of unity of command, which states that an employee should have only one supervisor, is not applicable in a functional organization.

Q.11. Name the type of organisation in which

(a) There is a direct flow of authority to from the chief executive to subordinates.

(b) There is functional authority to individuals or departments.

Ans. (a) The type of organization with a direct flow of authority from the chief executive to subordinates is a Line Organization.

(b) The type of organization with functional authority to individuals or departments is a Functional Organization.

Q.12.What is meant by organisation?

Ans. Organization refers to the systematic arrangement of individuals and resources to accomplish specific goals or objectives. It involves establishing a formal structure, defining roles and responsibilities, coordinating activities, and creating a framework for decision-making and communication within a group or entity.

Q.13. Explain features of organisation?

Ans. Features of organization:

Structure: Organizations have a formal structure that defines roles, relationships, and hierarchy.

Goals: Organizations have specific objectives or goals they aim to achieve.

Division of Labor: Tasks and responsibilities are assigned based on specialization and expertise.

Coordination: Activities are synchronized to ensure smooth functioning and alignment.

Communication: Effective communication channels facilitate information sharing.

Authority: There is a clear distribution of power and decision-making.

Integration: Different functions and departments work together towards common objectives.

Adaptability: Organizations must be able to adapt to changes in the environment.

These features help organizations operate efficiently and effectively.

 

SHORT ANSWER QUESTIONS

 

Q.1. Distinguish between formal and informal organistion (Give three points only)?

Ans. Differences between formal and informal organization:

Structure and Hierarchy: Formal organizations have a defined structure and hierarchy with clear lines of authority and reporting relationships. In contrast, informal organizations lack a formal structure and operate based on personal relationships and informal networks.

Communication Channels: Formal organizations follow established channels of communication, such as official meetings, reports, and documentation. Informal organizations rely on informal and spontaneous communication, such as conversations, social interactions, and grapevine communication.

Rules and Procedures: Formal organizations have well-defined rules, policies, and procedures that govern the behavior and operations of individuals. Informal organizations operate based on social norms, personal understandings, and unwritten rules that emerge through interactions among members.

These distinctions highlight the contrasting characteristics and dynamics of formal and informal organizations.

Q.2. Give the meaning of informal organistion with the help of suitable example?

Ans. Informal organization refers to the unofficial and spontaneous relationships, interactions, and networks that develop among individuals within a formal organization. These relationships are not prescribed by the formal structure but emerge naturally based on personal connections, shared interests, and social dynamics.

An example of an informal organization can be seen within a workplace, where employees form friendships and social circles outside of their formal work roles. They may gather during lunch breaks, organize after-work activities, or engage in informal discussions and collaborations that transcend the official reporting lines. These informal interactions contribute to building a sense of camaraderie, trust, and support among employees, which can positively impact morale, teamwork, and overall organizational culture.

Q.3. Differentiate between of informal and informal organisation on the basis of formation, purpose, structure and communication?

Ans. Differentiation between Formal and Informal Organization:

Formation:

Formal Organization: It is intentionally created and established by management to achieve specific objectives and goals.

Informal Organization: It emerges spontaneously based on personal relationships, shared interests, and social interactions among individuals within the formal organization.

Purpose:

Formal Organization: It exists to accomplish defined tasks, responsibilities, and objectives as outlined in the organizational structure and job roles.

Informal Organization: It serves social and personal needs of individuals, such as building relationships, sharing information, and seeking support.

Structure:

Formal Organization: It has a predefined structure with clear hierarchies, reporting lines, and formal positions or roles.

Informal Organization: It has a fluid and flexible structure that evolves based on personal connections, interests, and social dynamics. It is not bound by formal roles or positions.

Communication:

Formal Organization: Communication in a formal organization follows predefined channels and protocols, such as official meetings, reports, and documentation.

Informal Organization: Communication in an informal organization is more spontaneous, informal, and often occurs through informal conversations, social gatherings, and informal networks.

Please note that while these points provide a general differentiation between formal and informal organization, it's important to consider that formal and informal aspects can coexist within an organization, and the degree of formality or informality can vary.

Q.4. Explain briefly the steps in the process of organisation?

Ans. The process of organization involves several steps that help in structuring and arranging the resources and activities of an organization. Here is a brief explanation of the steps involved:

Determining Objectives: The first step is to clearly define the objectives and goals of the organization. This provides a clear direction for organizing efforts and helps in setting priorities.

Division of Work: The next step is to divide the work into specific tasks and responsibilities. This involves breaking down the overall work requirements into smaller units and assigning them to individuals or teams.

 

Establishing Relationships: Once the work is divided, the next step is to establish relationships among individuals and groups. This includes defining reporting relationships, lines of authority, and communication channels.

Creating a Structure: Organizational structure refers to the arrangement of individuals, departments, and functions within the organization. This step involves creating a formal structure that defines positions, their roles, and how they are interconnected.

Delegation of Authority: Authority is the power to make decisions and take actions. In this step, authority is delegated to individuals or positions based on their roles and responsibilities. It clarifies who has the power to make decisions at different levels.

Establishing Communication Channels: Effective communication is essential for smooth functioning and coordination. This step involves establishing formal communication channels, such as reporting lines, meetings, and information-sharing systems.

Coordinating Activities: Coordination ensures that different individuals and departments work together towards common goals. This step involves establishing mechanisms for coordination, such as regular meetings, collaboration, and teamwork.

Monitoring and Control: The final step is to monitor and control the organizational structure and processes. This involves evaluating performance, identifying deviations from plans, and taking corrective actions when necessary.

By following these steps, organizations can create a well-organized structure, promote effective communication and coordination, and ensure that activities are aligned with the overall objectives of the organization.

Q.5. Give any three merits of organisation?

Ans. Three merits of organization are:

 

Efficient Resource Utilization: Organization helps in efficient utilization of resources by providing a clear structure and division of work. It ensures that tasks and responsibilities are assigned to the right people, eliminating duplication of efforts and reducing wastage of resources. This leads to improved productivity and cost-effectiveness.

Improved Coordination: A well-organized structure facilitates coordination among individuals and departments. It establishes clear lines of communication and reporting, making it easier to share information, collaborate on projects, and make decisions collectively. This enhances teamwork and synergy, leading to better overall performance.

Clear Roles and Responsibilities: Organization clarifies roles and responsibilities of individuals within the organization. It defines job descriptions, authority levels, and reporting relationships, ensuring that everyone understands their tasks and obligations. This reduces ambiguity and confusion, promotes accountability, and enables employees to focus on their specific areas of expertise.

These merits highlight the importance of organization in optimizing resources, enhancing coordination, and providing clarity in roles and responsibilities, leading to improved efficiency and effectiveness within an organization.

Q.6. Explain briefly meaning of, organistion structure?

Ans. Organizational structure refers to the framework or system that defines how an organization is designed, how tasks and responsibilities are divided, and how information flows within the organization. It establishes the hierarchy, relationships, and coordination mechanisms among various roles, departments, and functions.

An organization structure typically includes elements such as:

Hierarchical levels: It outlines the levels of authority and management within the organization, from top-level executives to middle management and frontline employees. This defines the chain of command and reporting relationships.

Departmentalization: It involves grouping individuals and functions into departments or divisions based on their similarities, such as by function (e.g., marketing, finance, operations) or by product/service lines.

Span of control: It refers to the number of subordinates that a manager directly supervises. It determines the extent of managerial authority and the level of decision-making power at different levels of the organization.

Centralization vs. decentralization: It defines the degree to which decision-making authority is concentrated at the top of the organization (centralized) or dispersed among lower-level employees (decentralized).

Formal reporting relationships: It specifies the lines of communication and authority, indicating who reports to whom and who is responsible for supervising and evaluating the performance of others.

Communication channels: It determines how information flows within the organization, including both formal channels (e.g., official memos, reports) and informal channels (e.g., conversations, email).

The organizational structure helps establish clarity, accountability, and efficiency within the organization by defining roles, responsibilities, and reporting mechanisms. It influences decision-making, coordination, and communication, and plays a crucial role in determining how work is organized and executed.

Q.7.What is informal organistion? How is it different from formal organisation on the basis of purpose and behavior of members?

Ans. Informal organization refers to the unofficial, spontaneous relationships and interactions that develop among individuals within a formal organization. It is based on social connections, personal relationships, and common interests of the members.

Informal organization differs from formal organization in terms of purpose and behavior of members in the following ways:

Purpose: The purpose of a formal organization is typically defined by its official goals, objectives, and tasks. It operates with a clear structure, hierarchy, and defined roles to achieve specific outcomes. In contrast, the purpose of an informal organization is not explicitly stated or defined. It emerges naturally as individuals form social connections, seek support, and fulfill their social and psychological needs within the formal organization.

Behavior of members: In a formal organization, members are expected to adhere to established rules, procedures, and codes of conduct. Their behavior is governed by authority, policies, and professional norms. On the other hand, in an informal organization, members' behavior is driven by social dynamics, personal relationships, and informal norms. They may develop their own unwritten rules, norms, and ways of interacting that may or may not align with the formal organization's expectations.

In an informal organization, members may engage in informal communication, share information, seek advice, form alliances, and provide support to each other. They may establish networks, develop friendships, and rely on informal leaders who may hold influence outside the formal hierarchical structure. The behavior within an informal organization is less formal, more flexible, and often driven by personal connections and trust.

While formal organization focuses on achieving specific objectives and tasks, informal organization serves as a social fabric that can enhance communication, collaboration, and morale among members. It can provide a sense of belonging, social support, and opportunities for informal learning and information sharing. However, informal organization can also create challenges in terms of maintaining consistency, coordination, and alignment with the formal structure and objectives of the organization.

Q.8. Describe the importance of an informal organistion?

Ans. The importance of an informal organization lies in its ability to complement and support the formal structure of an organization. Here are some key reasons why informal organization is important:

 

Communication and Information Flow: Informal organization facilitates the flow of information and communication among members. It provides channels outside the formal hierarchical structure for exchanging ideas, sharing knowledge, and disseminating information. Informal networks often reach across departments and levels, enabling faster and more effective communication that can enhance collaboration and decision-making.

Social Support and Morale: Informal organization helps create a sense of belonging and camaraderie among members. It fosters social interactions, friendships, and support networks that contribute to a positive work environment and employee morale. Informal relationships can provide emotional support, guidance, and mentorship, which can increase job satisfaction, motivation, and engagement.

Flexibility and Adaptability: The informal organization is often more flexible and adaptable than the formal structure. It can respond quickly to changing circumstances, emerging challenges, and new opportunities. Informal networks can facilitate informal problem-solving, innovation, and the sharing of best practices. They can also help individuals navigate the complexities of the organization and find solutions outside the formal channels.

Identification of Opinion Leaders: Informal organization helps identify opinion leaders or influencers within the organization. These individuals may not hold formal positions of authority but have a significant impact on others due to their expertise, experience, or personal qualities. Recognizing and leveraging these informal leaders can be valuable in driving change, influencing behaviors, and promoting initiatives within the organization.

Organizational Culture and Norms: Informal organization plays a role in shaping the organizational culture and establishing informal norms. The shared values, beliefs, and behaviors that emerge within informal networks can influence how work is done, how decisions are made, and how individuals interact with each other. Understanding and managing the informal organization can help align it with the desired organizational culture and promote positive norms and behaviors.

It is important for organizations to recognize and leverage the benefits of the informal organization while also ensuring that it aligns with the overall objectives and values of the formal structure. Balancing the formal and informal aspects of an organization can lead to a more cohesive, productive, and harmonious work environment.

Q.9.What is an organisation? Discuss its importance in management?

Ans. An organization is a structured and coordinated entity composed of individuals working together towards a common goal. It is a formal arrangement that outlines the roles, responsibilities, relationships, and processes necessary to achieve the objectives of the organization.

The importance of an organization in management can be understood through the following points:

Goal Achievement: An organization provides a framework for setting and achieving goals. It clarifies the purpose and direction of the entity and aligns the efforts of individuals towards a common objective. It helps in coordinating and integrating the activities of different departments and individuals, leading to improved efficiency and effectiveness in achieving goals.

Division of Work: Organizing involves dividing the work into specific tasks and assigning them to individuals or groups based on their skills and expertise. This division of work enables specialization, where individuals can focus on their areas of expertise, leading to higher productivity and quality of output. It helps in utilizing resources efficiently and optimizing the use of available talent.

Coordination: An organization facilitates coordination among different departments, teams, and individuals. It establishes clear lines of authority, responsibility, and communication channels to ensure smooth workflow and collaboration. Effective coordination minimizes conflicts, reduces duplication of efforts, and enhances the overall efficiency of the organization.

Resource Allocation: Organizing involves allocating resources such as human resources, finances, materials, and equipment to different areas of the organization. Proper allocation of resources ensures their optimal utilization and prevents wastage. It helps in identifying resource needs, budgeting, and making informed decisions regarding resource allocation.

Decision Making: An organization provides a framework for decision-making processes. It establishes hierarchies, decision-making authorities, and communication channels that enable timely and effective decision making at different levels of the organization. Organizational structures, such as centralized or decentralized decision making, influence the speed and quality of decision making.

Adaptability: Organizing helps organizations to adapt to changes in the internal and external environment. It allows for flexibility and agility in responding to market trends, technological advancements, and competitive pressures. Organizational structures can be modified to accommodate new strategies, initiatives, and changing business conditions, ensuring the organization's sustainability and growth.

Accountability and Control: An organization provides a framework for establishing accountability and control mechanisms. It sets clear responsibilities, defines performance expectations, and establishes systems for monitoring and evaluating performance. Organizational structures and processes help in identifying deviations, addressing issues, and ensuring compliance with organizational policies and standards.

In summary, organization is a fundamental function of management that plays a crucial role in achieving goals, optimizing resources, facilitating coordination, enabling decision making, and ensuring accountability. It provides the structure and framework for effective management and contributes to the overall success and growth of the organization.

Q.10.What is formal organisation structure? Describe features of formal organisation structure?

Ans. Formal organizational structure refers to the systematic arrangement of roles, responsibilities, and relationships within an organization. It provides a framework for organizing and coordinating activities to achieve the organization's goals. Here are some features of formal organizational structure:

Hierarchy: Formal organizational structure typically involves a hierarchical arrangement of positions or levels within the organization. It establishes a chain of command, where authority and responsibility flow from top to bottom. Each level has a designated role and specific responsibilities, and individuals report to their immediate superiors.

Division of Labor: Formal organizational structure involves the division of work into specialized tasks. Different departments or units are established based on functional areas or specific functions. Each department or unit focuses on a specific aspect of the organization's operations, such as marketing, finance, operations, or human resources. This division of labor enables specialization and expertise in specific areas.

Clear Lines of Authority and Communication: In a formal organizational structure, there are clear lines of authority and communication. Each position has a defined level of authority and responsibility, and individuals know whom they report to and who they are accountable to. Formal communication channels are established, ensuring the flow of information, instructions, and feedback in a structured manner.

Departmentalization: Formal organizational structure involves the grouping of individuals and tasks into departments or functional units. Departmentalization can be based on various factors such as function, product, geography, or customer segment. It helps in organizing similar activities together, promoting coordination within departments, and facilitating effective management of resources.

Rules and Procedures: Formal organizational structure is characterized by the establishment of rules, policies, and procedures. These guidelines provide a framework for standardizing operations, decision making, and behavior within the organization. Rules and procedures help in ensuring consistency, efficiency, and fairness in the organization's activities.

Centralization or Decentralization: Formal organizational structure can be centralized or decentralized based on the concentration of decision-making authority. In a centralized structure, decision-making authority is concentrated at the top levels of the hierarchy, while in a decentralized structure, decision-making authority is dispersed to lower levels or departments. The choice between centralization and decentralization depends on the organization's size, complexity, and strategic considerations.

Span of Control: The span of control refers to the number of subordinates or employees that a manager directly supervises. In a formal organizational structure, the span of control can be narrow or wide. A narrow span of control means fewer subordinates reporting to a manager, while a wide span of control means more subordinates. The span of control affects the level of supervision, coordination, and communication within the organization.

These features of formal organizational structure help establish clarity, accountability, coordination, and efficiency within the organization. They provide a framework for organizing work, assigning responsibilities, and facilitating effective management and decision making.

Q.11. State any three circumstances in which functional organisation is more suitable?

Ans. Functional organization is more suitable in the following circumstances:

Specialized Expertise: Functional organization is suitable when the organization's operations require specialized knowledge and expertise in different functional areas. For example, in a software development company, functional departments such as programming, quality assurance, and user experience design may exist. Each department focuses on its specific expertise, allowing employees to specialize and excel in their respective areas.

 

Clear Functional Roles: When there is a clear distinction between different functions or activities within the organization, functional organization is appropriate. This is common in industries where specific functions, such as manufacturing, marketing, finance, and human resources, need to be well-defined and coordinated. Each function can have its own department with a defined set of responsibilities and specialized skills.

Efficient Resource Utilization: Functional organization can be more suitable when the organization wants to optimize resource utilization. By grouping employees with similar skills and expertise into functional departments, the organization can maximize their utilization. This arrangement allows for economies of scale and efficient allocation of resources, as employees can focus on specific tasks and activities related to their functional area.

It's important to note that while functional organization has its advantages in certain situations, the choice of organizational structure should be based on the unique needs, goals, and context of the organization.

Q.12. Explain the nature and purpose of organisation?

Ans. The nature of an organization refers to its essential characteristics and qualities, while the purpose of an organization relates to its fundamental reason for existence and the goals it aims to achieve. Here's an explanation of the nature and purpose of an organization:

Nature of Organization:

Social Entity: An organization is a social entity composed of individuals who come together to achieve common goals and objectives. It involves the interaction and coordination of people within a structured framework.

Goal-oriented: Organizations are established with specific objectives in mind. These goals can be related to profit generation, service delivery, social impact, or any other desired outcomes. The structure, activities, and resources of the organization are aligned towards achieving these goals.

Structure and Hierarchy: Organizations have a formal structure that defines the relationships, roles, and responsibilities of individuals within the organization. This structure may vary depending on the type of organization, but it typically includes levels of authority, reporting relationships, and division of labor.

Purpose of Organization:

Achieving Objectives: The primary purpose of an organization is to achieve its predetermined objectives. This could involve delivering products or services, generating profits, advancing a cause, or meeting societal needs. The organization provides a framework for coordinating and aligning the efforts of individuals towards these goals.

Coordination and Collaboration: Organizations bring together individuals with diverse skills, knowledge, and expertise to work together towards common goals. They provide a platform for coordination, collaboration, and synergy among team members, enabling them to leverage their collective abilities and achieve outcomes that would be difficult to attain individually.

Stability and Sustainability: Organizations provide stability and continuity to their operations. They establish systems, processes, and structures that enable them to function efficiently over time. By planning, organizing, and managing resources effectively, organizations aim to achieve long-term sustainability and growth.

The nature and purpose of organizations can vary depending on factors such as their size, industry, ownership structure, and goals. However, the fundamental essence of an organization lies in its social nature, goal orientation, and its ability to bring people together to work towards shared objectives.

Q.13. Distinguish between’ formal and Informal organisation ’on the basis of the following:

(a) Origin                  (b) Authority                      (c) Leadership

Ans. (a) Origin:

 

Formal Organization: Formal organizations are deliberately created and established by management with a specific purpose in mind. They are planned and structured entities that follow a predetermined design and framework.

Informal Organization: Informal organizations emerge spontaneously among individuals based on their social interactions and personal relationships. They are not intentionally created or designed by management but develop naturally within the formal organization.

(b) Authority:

Formal Organization: In formal organizations, authority is formally defined and delegated through the hierarchical structure. It follows the principle of a formal chain of command, where authority flows from top to bottom. Roles, responsibilities, and decision-making powers are explicitly assigned to individuals based on their position in the organization's structure.

Informal Organization: In informal organizations, authority is not based on formal position or designation. It is derived from personal characteristics, expertise, experience, and informal influence. Individuals may hold informal authority or influence within their social networks, irrespective of their formal position in the organization.

(c) Leadership:

Formal Organization: In formal organizations, leadership is typically assigned to individuals based on their formal position or role. Leaders are appointed or designated to guide, direct, and make decisions for their respective areas or departments. The formal organization recognizes and empowers individuals with formal leadership roles.

Informal Organization: In informal organizations, leadership emerges naturally based on the influence, expertise, and respect earned by individuals within the informal network. Informal leaders may not hold any formal position or title but are recognized and followed by others due to their personal qualities, skills, or knowledge.

In summary, formal organizations are intentionally created, have formal authority structures, and assign leadership roles based on formal positions. On the other hand, informal organizations emerge spontaneously, authority is based on personal influence, and leadership is earned through informal relationships and recognition.

Q.14. Distinguish between ‘functional and divisional structure’ on the basis of the following:

(a) Coordination                (b) Managerial development                           (c) Cost

Ans. (a) Coordination:

Functional Structure: In a functional structure, coordination is achieved by grouping employees based on their specialized functions or areas of expertise. Each functional department focuses on its specific tasks and responsibilities, and coordination occurs vertically within each department. Communication and coordination between departments may be less direct, leading to potential coordination challenges.

Divisional Structure: In a divisional structure, coordination is achieved by grouping employees based on products, services, geographic regions, or customer segments. Each division operates as a separate entity, with its own functional departments such as marketing, finance, and operations. Coordination occurs horizontally between divisions, as each division has its own set of functions and responsibilities. This allows for better coordination within each division, but coordination between divisions may require additional efforts.

(b) Managerial Development:

Functional Structure: In a functional structure, managerial development tends to be focused on functional expertise. Managers are groomed and developed within their specific functional areas, gaining in-depth knowledge and skills related to their specialized functions. This may result in limited exposure to other functional areas or cross-functional experiences.

Divisional Structure: In a divisional structure, managerial development is more focused on general management skills. Managers are responsible for overseeing the operations of their divisions, which requires a broader understanding of various functions. They gain exposure to multiple functional areas and develop skills in managing diverse teams and resources.

(c) Cost:

Functional Structure: In a functional structure, there is potential for cost savings due to economies of scale. Resources and expertise can be shared among functional departments, leading to efficiencies and cost reductions. However, duplication of functions across different departments may also occur, resulting in some inefficiencies.

Divisional Structure: In a divisional structure, there may be higher costs due to duplication of functions across different divisions. Each division operates independently with its own set of resources and functions, which can result in higher costs compared to a centralized functional structure. However, divisional structures may also offer benefits in terms of better responsiveness to specific customer needs or market demands.

In summary, functional structures emphasize specialized functions and vertical coordination, while divisional structures focus on divisions based on products, regions, or customer segments and emphasize horizontal coordination. Managerial development differs in terms of functional expertise versus general management skills. Costs can vary due to economies of scale or duplication of functions.

Q.15. Differentiate between ‘formal and Informal organisation ‘on the basis of:

(a) Origin                  (b) Authority                      (c) flow of communication

Ans. (a) Origin:

 

Formal Organization: Formal organizations are deliberately created and established by individuals or groups with a specific purpose or objective in mind. They are intentionally structured and designed to achieve specific goals. Examples of formal organizations include corporations, government agencies, and non-profit organizations.

Informal Organization: Informal organizations emerge spontaneously without any deliberate planning or establishment. They are formed based on the natural social interactions and relationships among individuals within a formal organization or a social group. Informal organizations are not officially recognized or sanctioned by any authority.

(b) Authority:

Formal Organization: In a formal organization, authority is officially designated and defined through hierarchical structures. It follows a formal chain of command, where authority flows from top-level management down to lower-level employees. Authority is based on job positions and roles within the organization. It is established through formal mechanisms such as job descriptions, organizational charts, and official policies and procedures.

Informal Organization: In an informal organization, authority is not formally designated or assigned. It emerges based on personal influence, expertise, and social dynamics among individuals. Authority in informal organizations is derived from personal relationships, informal networks, and the recognition and respect individuals gain from their peers.

(c) Flow of Communication:

Formal Organization: In a formal organization, communication follows predefined channels and structures. It typically flows through official lines of authority and is governed by established protocols and procedures. Communication in formal organizations is often documented, formalized, and recorded. It may include formal meetings, reports, memos, emails, and other official communication channels.

Informal Organization: In an informal organization, communication is more spontaneous and flexible. It does not strictly follow predefined channels or formal protocols. Communication in informal organizations is often based on personal interactions, informal conversations, and social networks. It may occur through casual conversations, social gatherings, informal meetings, and informal communication channels like social media or informal networks within the organization.

In summary, formal organizations are deliberately created and structured, with authority flowing through defined hierarchical channels and communication following established protocols. Informal organizations, on the other hand, emerge naturally, with authority based on personal influence and communication occurring through informal networks and personal interactions.

Q.16. State any three limitations of Divisional structure of an organistion?

Ans. Three limitations of a divisional structure in an organization are:

Duplication of Resources: In a divisional structure, each division operates as a separate entity with its own resources and support functions. This can lead to duplication of resources such as personnel, equipment, and facilities. It can result in inefficiencies and increased costs as divisions may independently acquire and maintain their resources, which could have been shared or centralized in a functional structure.

Lack of Coordination: Divisional structures often lead to limited coordination and communication between divisions. Each division focuses on its own goals and objectives, which can result in a siloed approach to decision-making and operations. This lack of coordination may hinder the sharing of knowledge, best practices, and resources among divisions, leading to suboptimal outcomes and missed opportunities for synergy.

Difficulty in Standardization and Control: With each division operating independently, maintaining consistent standards and control across the organization can be challenging. Different divisions may develop their own processes, policies, and procedures, which can create inconsistencies and discrepancies in operations. It may also be difficult for top-level management to exercise centralized control and ensure uniformity in performance and adherence to organizational policies and standards.

It's important to note that while divisional structures have limitations, they also offer benefits such as increased flexibility, focus on specific markets or products, and better customer responsiveness. The choice of organizational structure should be based on the specific needs and goals of the organization, considering both the advantages and disadvantages.

Q.17.What is meant by informal organisation? State its any two advantages?

Ans. Informal organization refers to the network of social relationships, interactions, and unofficial channels that exist within a formal organization but are not formally defined or documented. It arises naturally among individuals based on their common interests, personal affiliations, and informal social interactions.

Two advantages of informal organization are:

Enhanced Communication: Informal organization facilitates informal communication channels that complement the formal communication channels within the organization. It allows for more open and spontaneous communication among employees, which can lead to better information sharing, problem-solving, and innovation. Informal networks often span across hierarchical levels, enabling information to flow more quickly and effectively.

Increased Social Cohesion: Informal organization fosters a sense of camaraderie, trust, and mutual support among employees. It creates an informal social structure that promotes positive relationships and a sense of belonging. This can enhance employee morale, job satisfaction, and overall organizational culture. Informal relationships also provide emotional support, collaboration, and informal mentoring opportunities.

It's important to note that while informal organization can have advantages, it can also have some drawbacks, such as the potential for spreading rumors or creating cliques. Organizations need to strike a balance between formal and informal structures to harness the benefits of informal organization while maintaining the overall effectiveness and cohesion of the formal structure.

Q.18. State any three limitations of informal organisation?

Ans. Three limitations of informal organization are:

Lack of Control: Informal organization operates outside the formal structure and management control of an organization. This can lead to a lack of control over the information flow, decision-making, and actions of individuals within the informal network. The organization may struggle to influence or direct the informal interactions, which can result in conflicts, resistance to change, or deviation from organizational goals.

Potential for Rumors and Misinformation: Informal organization relies on informal communication channels, which can be prone to rumors, gossip, and misinformation. Information may spread quickly through the informal network, leading to distorted or inaccurate messages. This can create confusion, misunderstandings, and negatively impact employee morale, productivity, and organizational cohesion.

Exclusivity and Fragmentation: Informal organization often forms around common interests, social groups, or personal relationships. While this can foster collaboration and support within the informal network, it can also lead to exclusivity and fragmentation within the organization. Cliques or subgroups may form, creating divisions or favoritism, and excluding others who are not part of the informal network. This can hinder effective communication, collaboration, and teamwork across the entire organization.

It's important for organizations to recognize and manage the limitations of informal organization while leveraging its potential benefits. This can be done through clear communication, fostering a positive organizational culture, and integrating formal and informal structures in a balanced manner.

Q.19.What is meant by’ formal organisation? State its any two advantages?

Ans. Formal organization refers to the deliberate and planned structure, roles, and processes established by an organization to achieve its objectives. It is characterized by clearly defined roles, hierarchical relationships, formal communication channels, and established rules and procedures.

Two advantages of formal organization are:

Clear Roles and Responsibilities: In a formal organization, roles and responsibilities are clearly defined and assigned to individuals. This clarity helps in avoiding confusion and overlapping of tasks. Employees know their specific roles and the expectations associated with them, which enhances efficiency and productivity. Clear accountability also facilitates effective performance evaluation and rewards systems.

Efficient Coordination and Communication: Formal organization provides a structured framework for coordination and communication within the organization. There are established channels of communication, such as organizational charts, reporting hierarchies, and official meetings. This facilitates the smooth flow of information, decision-making, and coordination among different departments and individuals. It helps in aligning efforts, resolving conflicts, and ensuring that organizational goals are effectively communicated and pursued.

These advantages of formal organization contribute to greater efficiency, clarity, and effectiveness in achieving organizational objectives. However, it's important for organizations to balance the formal structure with the need for flexibility, adaptability, and informal interactions to fully harness the potential of their workforce.

Q.20. State any three features of informal organisation?

Ans. Three features of informal organization are:

Emerges Spontaneously: Informal organization is not deliberately designed or established by the management. It emerges spontaneously among employees based on their interactions, shared interests, and social relationships. It develops organically over time as individuals form informal groups, alliances, and networks within the formal organizational structure.

Based on Social Relationships: Informal organization is primarily based on social relationships and personal connections among employees. It is formed through informal interactions, friendships, common interests, and shared values. These social relationships often transcend formal hierarchical boundaries and departmental divisions.

Influences Communication and Behavior: Informal organization has a significant influence on communication patterns and behaviors within the workplace. Informal communication channels, such as grapevine or informal networks, often coexist with formal channels and can be more efficient in transmitting information quickly. Informal organization also shapes employee attitudes, norms, and behaviors, leading to the development of informal norms, informal leaders, and group dynamics that may affect decision-making and work outcomes.

These features highlight the spontaneous, social, and influential nature of informal organization within the formal organizational structure. While informal organization can foster collaboration, innovation, and social support, it can also create challenges in terms of managing conflicts, aligning individual and organizational goals, and maintaining consistency in communication and decision-making.

Q.21.What is meant by’ functional structure? State its any two advantages?

Ans. Functional structure refers to an organizational structure where employees are grouped based on their common functions or specialized areas of expertise. In a functional structure, different departments or units are created for functions such as marketing, finance, human resources, operations, etc. Each department is responsible for carrying out specific tasks related to its function.

 

Two advantages of a functional structure are:

Specialization and Expertise: Functional structure allows employees to specialize in their respective functional areas. This promotes the development of specific skills and expertise within each department. Employees can focus on honing their skills and becoming proficient in their functional domain. This specialization can lead to increased efficiency, improved quality of work, and better decision-making within each department.

Clear Career Paths: Functional structure provides clear career paths for employees within each functional area. As employees work within a specific department, they have opportunities for career growth and advancement by taking on more challenging roles or positions with higher responsibilities. This promotes employee motivation and retention as they see a clear progression path within their area of expertise.

These advantages highlight the benefits of functional structure in terms of expertise development and career progression within specialized functional areas. However, functional structure also has limitations, such as potential coordination challenges between departments, siloed communication, and slower response to changes or customer needs that span multiple functions.

Q.22. Explain when and why the need is felt for having a framework, within which managerial and operating tasks are performed to accomplish desired goals. Name this framework also?

Ans. The need for having a framework within which managerial and operating tasks are performed arises when an organization aims to accomplish its desired goals efficiently and effectively. This framework is commonly known as "Organizational Structure."

Organizational structure provides a formal framework that defines how tasks, responsibilities, and authority are distributed within an organization. It establishes the relationships between different positions and departments, and it sets the overall hierarchy and reporting lines. The organizational structure helps in establishing clarity, coordination, and control within the organization.

 

The need for an organizational structure arises due to several reasons:

Division of Labor: As organizations grow in size and complexity, there is a need to divide tasks and responsibilities among employees. Organizational structure facilitates the division of labor, ensuring that each individual or department has specific roles and responsibilities.

Coordination and Communication: An organization's structure provides a framework for coordination and communication. It determines how different departments and individuals interact, collaborate, and share information. A well-designed structure promotes effective communication, reduces duplication of efforts, and ensures smooth coordination between various units.

Clear Authority and Decision-Making: Organizational structure establishes the chain of command and clarifies the authority levels within the organization. It defines reporting relationships and decision-making processes, ensuring that tasks and decisions are delegated appropriately. This clarity in authority helps in efficient decision-making, faster problem-solving, and effective utilization of resources.

Overall, the framework provided by the organizational structure helps in achieving organizational goals by providing clarity, coordination, and control. It establishes a framework within which managerial and operating tasks are performed, allowing the organization to function smoothly and efficiently.

Q.23. Explain by giving any three reasons why organizing is considered as an important function of management?

Ans. Organizing is considered an important function of management due to the following reasons:

Efficient Resource Allocation: Organizing involves identifying and arranging the necessary resources, such as human resources, materials, equipment, and finances, in a structured manner. By organizing these resources effectively, managers can ensure their optimal utilization and allocation. This leads to improved productivity, cost-efficiency, and overall organizational performance.

Clarity and Direction: Organizing provides a clear structure and framework within which work activities are carried out. It establishes roles, responsibilities, and reporting relationships, ensuring that every individual understands their tasks and knows how they fit into the larger organizational context. This clarity provides employees with a sense of direction, reduces ambiguity, and promotes smooth workflow.

Facilitates Specialization and Collaboration: Organizing allows for the division of labor and specialization within an organization. By grouping similar tasks and creating specialized departments or units, managers can tap into employees' skills and expertise, leading to increased efficiency and quality of work. Additionally, organizing enables effective collaboration and coordination between different individuals and departments, fostering teamwork and synergy.

Scalability and Growth: As organizations grow in size and complexity, organizing becomes crucial for managing the expansion. Through proper organizing, managers can create scalable structures, establish clear communication channels, and delegate authority appropriately. This enables the organization to adapt to changes, accommodate growth, and effectively manage increased workloads.

Overall, organizing is an important function of management because it facilitates efficient resource allocation, provides clarity and direction, enables specialization and collaboration, and supports the scalability and growth of the organization. By effectively organizing the resources and activities, managers can enhance organizational effectiveness, optimize performance, and achieve the desired goals.

LONG ANSWER QUESTIONS

Q.1.What is formal organisation how does formal organistion differ from informal organisation?

Ans. Formal organization refers to a structured and planned arrangement of individuals within an organization to achieve specific goals. It is characterized by established lines of authority, defined roles and responsibilities, and formal communication channels. Formal organization is typically documented through official documents, such as organizational charts, job descriptions, and policies.

On the other hand, informal organization refers to the network of relationships, interactions, and associations that develop spontaneously among individuals within an organization. It is based on personal connections, social interactions, and shared interests rather than formal designations or positions. Informal organization emerges naturally as employees interact and form social bonds in the workplace.

Differences between formal and informal organization:

Structure: Formal organization has a defined structure with hierarchical levels, reporting relationships, and job roles clearly outlined. In contrast, informal organization lacks a formal structure and operates based on personal relationships and social dynamics.

Communication: In formal organization, communication flows through official channels and follows prescribed routes. It is typically documented and follows a formal protocol. In informal organization, communication is more spontaneous, informal, and often occurs through informal conversations, social interactions, and informal networks.

Purpose: Formal organization is established to accomplish specific organizational goals and objectives. It focuses on achieving efficiency, coordination, and control within the organization. Informal organization, while not officially designed, serves to fulfill social and emotional needs of employees, fosters collaboration, and facilitates information sharing.

Recognition: Formal organization is officially recognized and acknowledged by the organization. It is governed by policies, rules, and procedures. In contrast, informal organization is not formally recognized or documented. It exists based on personal relationships and social dynamics, often outside the purview of official organizational structure.

Stability: Formal organization tends to be more stable and resistant to change due to its structured nature. Informal organization is more flexible and adaptable to changes as it is based on informal social connections that can evolve and change over time.

In summary, formal organization is a planned and structured arrangement of individuals within an organization, whereas informal organization emerges spontaneously through social interactions. Formal organization operates through established channels and structures, while informal organization operates through personal relationships and social dynamics.

Q.2. Organising involves a series of steps that need to be taken in order to achieve the desired goal explain these steps?

Ans. The process of organizing involves a series of steps that help in structuring and coordinating the resources and activities of an organization to achieve its goals effectively. The steps in the process of organizing are as follows:

Identification and Division of Work: The first step is to identify the tasks and activities that need to be accomplished to achieve the desired goals. The work is then divided into smaller, manageable tasks that can be assigned to individuals or groups based on their skills and expertise.

Departmentalization: Once the work is identified and divided, the next step is to group related tasks and activities into departments or units. Departmentalization can be done based on functions (functional departmentalization), products or services (product departmentalization), geographical locations (geographical departmentalization), or customer segments (customer departmentalization).

Assignment of Duties and Responsibilities: In this step, the duties and responsibilities associated with each task or position are clearly defined and assigned to individuals or groups. This includes determining the authority, accountability, and reporting relationships for each role within the organization.

Establishing Reporting Relationships: The next step is to establish a formal chain of command and reporting relationships within the organization. This includes determining who reports to whom, establishing levels of authority and decision-making, and creating a hierarchical structure.

Delegation of Authority: Delegation involves assigning decision-making authority and empowering individuals or teams to make decisions and take actions within their assigned roles. It is important to delegate authority appropriately to ensure effective decision-making, accountability, and efficient workflow.

Establishing Communication Channels: Effective communication is crucial for organizational success. This step involves establishing formal communication channels, both vertically (upward and downward) and horizontally (between departments or teams), to facilitate the flow of information, instructions, feedback, and coordination.

Coordination: Coordination ensures that the activities of different individuals, teams, and departments are synchronized and aligned towards the common goals of the organization. It involves establishing mechanisms for collaboration, resolving conflicts, and integrating the efforts of various units.

Establishing Organizational Structure: Finally, the organization structure is formally established, which includes the arrangement and interconnection of various departments, positions, and roles within the organization. This can be depicted through organizational charts or diagrams that show the hierarchy, reporting relationships, and coordination mechanisms.

By following these steps, the process of organizing helps create a clear structure, clarify roles and responsibilities, facilitate communication and coordination, and ultimately enable the organization to work towards its goals efficiently and effectively.

Q.3. “Sound organisation is the foundation of efficient management in the light of this statement, describe the importance of organisation?

Ans. The importance of organization in efficient management cannot be overstated. A sound organization serves as the foundation for effective and successful management. Here are some key reasons highlighting the importance of organization:

Clarifies Roles and Responsibilities: Organizing helps in defining and clarifying the roles, responsibilities, and authorities of individuals and teams within the organization. It ensures that everyone understands their tasks, knows whom to report to, and understands the scope of their authority. This clarity minimizes confusion, duplication of efforts, and conflicts, leading to increased productivity and efficiency.

Promotes Efficiency and Productivity: A well-organized structure allows for efficient allocation and utilization of resources, such as human resources, financial resources, and physical assets. It helps in optimizing workflow, reducing unnecessary delays and bottlenecks, and ensuring smooth coordination among different functions or departments. This streamlined approach enhances productivity and efficiency, as resources are utilized effectively to achieve organizational goals.

Facilitates Decision-Making and Communication: A sound organization provides clear channels of communication and decision-making processes. It ensures that information flows smoothly and timely between different levels and functions within the organization. Effective communication fosters better collaboration, coordination, and problem-solving. Additionally, a well-structured organization enables faster decision-making, as roles and responsibilities are defined, authority is delegated, and decision-making power is appropriately distributed.

Enables Growth and Adaptability: An organized structure allows for scalability and adaptability in the face of changing circumstances and growth opportunities. It provides a framework that can accommodate expansion, diversification, or restructuring of the organization. With clearly defined roles, flexible processes, and efficient coordination mechanisms, the organization can respond effectively to market changes, customer demands, and new business challenges.

Enhances Accountability and Control: Organization helps in establishing clear lines of accountability. Each individual or team is responsible for specific tasks and outcomes, and they can be held accountable for their performance. Well-defined reporting relationships and monitoring systems enable effective control and evaluation of progress towards goals. This accountability and control mechanisms promote discipline, commitment, and a sense of responsibility among employees.

In summary, organization is crucial for efficient management as it provides structure, clarity, and coordination within the organization. It promotes efficiency, productivity, effective communication, decision-making, adaptability, accountability, and control. By establishing a sound organization, managers can optimize the utilization of resources, align efforts towards common objectives, and ensure the overall success and growth of the organization.

Q.4. Discuss briefly the principles of organisation?

Ans. The principles of organization provide guidelines and frameworks for structuring and managing an organization effectively. These principles help in achieving coordination, efficiency, and clarity in roles and responsibilities. Here are some key principles of organization:

Principle of Specialization: This principle states that tasks and activities should be divided and assigned to individuals or groups based on their specialized skills, knowledge, and expertise. Specialization allows individuals to focus on specific areas, leading to higher efficiency and productivity. It also enables the development of expertise and promotes learning and improvement in specific domains.

Principle of Unity of Command: According to this principle, an individual should have only one direct supervisor or reporting authority. It ensures clarity in reporting relationships and prevents conflicts arising from multiple instructions or commands. Unity of command helps in maintaining discipline, accountability, and clear lines of communication within the organization.

Principle of Scalar Chain: The scalar chain principle emphasizes the importance of maintaining a formal chain of command or hierarchy within the organization. It establishes a clear line of authority and communication from the top management to the lower levels. The scalar chain ensures that information flows through the organization in a systematic manner and enables effective decision-making, coordination, and control.

Principle of Span of Control: This principle determines the number of subordinates or employees that a manager can effectively supervise and manage. It suggests that managers should have a reasonable and manageable number of subordinates to ensure effective supervision, communication, and coordination. The appropriate span of control varies depending on the complexity of tasks, skills required, and the capabilities of managers.

Principle of Unity of Direction: The principle of unity of direction emphasizes the importance of aligning and coordinating individual efforts towards common objectives. It states that there should be a single plan of action and direction for all individuals and groups within the organization. Unity of direction helps in avoiding conflicts, promoting synergy, and ensuring that everyone works towards the same goals.

Principle of Flexibility: This principle acknowledges the need for flexibility and adaptability in organizational structures and processes. It recognizes that organizations operate in dynamic and changing environments. The principle of flexibility encourages organizations to design structures and processes that can accommodate future changes, growth, and new opportunities.

These principles provide managers with a framework to design organizational structures, assign responsibilities, establish reporting relationships, and ensure effective coordination and communication. By applying these principles, organizations can enhance efficiency, effectiveness, and overall performance. It is important to note that the principles of organization should be tailored and adapted to the specific needs, context, and goals of the organization.

Q.5. Organising is the process of defining and grouping the activities of the enterprise and establishing the authority relationship among them in the light of this statement, explain the steps in the process of organizing?

Ans. The process of organizing involves a series of steps to define, group, and establish authority relationships among the activities within an enterprise. Here are the steps in the process of organizing:

Identification and Division of Work: The first step is to identify and define the various tasks and activities required to achieve the goals of the organization. This involves breaking down the work into manageable units and determining the specific responsibilities and roles associated with each task.

Departmentalization: Once the work is identified, the next step is to group similar activities and tasks together into departments or units. Departmentalization can be done based on various factors such as function, product, geography, customer type, or process. This step helps in creating logical units within the organization and facilitates coordination and specialization.

Assignment of Duties and Responsibilities: After departmentalization, duties and responsibilities are assigned to individuals or positions within each department. This step involves clarifying the roles, defining job descriptions, and allocating specific tasks to individuals based on their skills, qualifications, and expertise.

Establishing Authority Relationships: The next step is to establish authority relationships within the organization. This includes determining the hierarchy of authority, defining reporting relationships, and assigning decision-making powers to different positions or individuals. The formal chain of command is established to ensure clear lines of authority and accountability.

Delegation of Authority: Once the authority relationships are established, the process of delegation takes place. Delegation involves granting authority and empowering individuals or positions to make decisions and take responsibility for specific tasks or areas. It allows for the distribution of workload, promotes autonomy, and enhances efficiency.

Coordination: Coordination is an essential step in organizing to ensure that the activities of different departments and individuals work together harmoniously towards common goals. It involves establishing mechanisms for communication, cooperation, and collaboration among various units and individuals. Coordination ensures that work is synchronized, conflicts are resolved, and overall organizational objectives are achieved.

Establishing Reporting Relationships: The final step in the process of organizing is to establish reporting relationships. This includes determining the reporting structure, lines of communication, and channels for information flow within the organization. Reporting relationships facilitate the flow of information, feedback, and decision-making throughout the organizational hierarchy.

By following these steps, an organization can effectively organize its activities, establish clear roles and responsibilities, promote coordination and collaboration, and create a structure that supports the achievement of its goals. It is important to regularly review and adapt the organizational structure and processes to accommodate changes in the business environment and ensure ongoing effectiveness.

Q.6. Organisation is the harmonious adjustment of specialized parts for the accomplishment of some common purpose or purpose in the light of this statement explain any four points of importance of organizing?

Ans. Organizing plays a crucial role in achieving the harmonious adjustment of specialized parts within an organization for the accomplishment of common goals. Here are four points highlighting the importance of organizing:

Optimal Resource Utilization: Organizing helps in the efficient allocation and utilization of resources within an organization. By defining roles, responsibilities, and departmental structures, it ensures that resources such as human capital, materials, and equipment are allocated effectively. This leads to improved productivity, minimized wastage, and cost-effectiveness in operations.

Clarity in Roles and Responsibilities: Organizing provides clarity in roles and responsibilities by defining job descriptions, establishing reporting relationships, and assigning tasks. It eliminates confusion and ambiguity, ensuring that each individual knows their responsibilities and how they contribute to the overall objectives of the organization. Clear roles promote accountability, reduce duplication of efforts, and enhance overall coordination.

Facilitates Specialization and Expertise: Organizing enables the organization to structure its activities based on specialization and expertise. By grouping similar tasks and functions together, it allows individuals and departments to develop specific skills and knowledge in their respective areas. Specialization leads to increased efficiency, higher quality output, and innovation. It also promotes the development of expertise within the organization.

Promotes Effective Communication and Coordination: Organizing establishes formal lines of communication and coordination within the organization. It creates a framework for information flow, decision-making, and collaboration among individuals and departments. Clear reporting relationships and well-defined communication channels enable timely and accurate exchange of information, fostering effective teamwork and problem-solving. Effective coordination ensures that different parts of the organization work together cohesively towards common objectives.

Overall, organizing is essential for achieving a harmonious and purposeful functioning of an organization. It enables optimal resource utilization, clarifies roles and responsibilities, promotes specialization, and facilitates effective communication and coordination. By organizing effectively, an organization can enhance its efficiency, productivity, and ultimately achieve its desired outcomes.

Q.7. Give the meaning of Informal state it‘s any three advantages?

Ans. Informal organization refers to the unofficial and spontaneous social networks, relationships, and interactions that develop among individuals within a formal organization. It is based on personal connections, shared interests, and common goals that emerge naturally among employees. Here are three advantages of informal organization:

Enhanced Communication and Collaboration: Informal organization promotes informal communication channels that are not bound by formal hierarchical structures. It allows for open and free-flowing communication among employees at different levels, departments, and functions. This informal communication fosters collaboration, knowledge sharing, and problem-solving. It enables employees to connect, exchange ideas, and work together effectively, leading to improved teamwork and innovation.

Quick Dissemination of Information: Informal organization facilitates the rapid spread of information within the organization. Since employees in informal networks maintain close relationships and interact frequently, information and updates can be shared quickly and informally. This helps in disseminating important information, news, and changes more efficiently than relying solely on formal channels. It ensures that relevant information reaches employees in a timely manner, enabling them to adapt, make informed decisions, and respond effectively to organizational needs.

Social and Emotional Support: Informal organization provides a sense of community, social support, and camaraderie among employees. It creates a positive work environment where employees feel connected, valued, and supported by their peers. Informal networks often offer emotional support, mentoring, and guidance, particularly during challenging times or when facing work-related issues. This social support fosters employee morale, engagement, and job satisfaction, contributing to a positive organizational culture.

These advantages of informal organization highlight the importance of recognizing and leveraging informal networks within the formal organizational structure. While formal organization provides structure and clarity, informal organization brings social connections, collaboration, and support, enhancing overall organizational effectiveness.

Q.8.What is meant by divisional structure of an organisttion for which type of business is this structure most by four advantages of this form of organisation structure?

Ans. Divisional structure is an organizational structure in which the company is divided into separate divisions or units based on specific products, services, geographical locations, or customer segments. Each division operates as a self-contained entity with its own resources, functions, and decision-making authority. This structure is most suitable for large organizations that have diverse business lines or operate in multiple markets. Here are four advantages of divisional structure:

 

Focus on Specific Markets or Products: Divisional structure allows each division to focus on a specific market segment, product line, or geographic region. This specialization enables divisions to develop expertise and tailor their strategies, operations, and marketing efforts according to the unique needs and demands of their respective markets. It promotes a customer-centric approach and enhances the organization's ability to effectively serve diverse customer segments.

Decentralized Decision-Making: In divisional structure, decision-making authority is decentralized to the division level. Each division has its own management team responsible for decision-making related to their specific division. This decentralization empowers divisional managers to make decisions quickly, respond to market changes, and address specific customer needs without relying on lengthy approval processes. It enhances flexibility, agility, and responsiveness in decision-making, leading to faster problem-solving and improved customer satisfaction.

Accountability and Performance Measurement: Divisional structure facilitates clear accountability and performance measurement at the division level. Each division operates as a separate entity with its own set of objectives, targets, and performance indicators. This allows for better evaluation and assessment of divisional performance, as performance measures can be customized to suit the specific goals and metrics of each division. It promotes a sense of ownership and responsibility among divisional managers, driving performance and results.

Encourages Innovation and Entrepreneurship: Divisional structure fosters innovation and entrepreneurship within each division. Since divisions have autonomy and authority over their operations, they have the freedom to experiment, introduce new products or services, and pursue innovative strategies. This entrepreneurial environment encourages creativity, risk-taking, and a focus on continuous improvement. It enables divisions to adapt to market changes, seize new opportunities, and drive growth within their specific areas of operation.

Overall, the divisional structure allows large organizations to effectively manage diverse business lines, markets, or customer segments by providing focused attention, decentralized decision-making, clear accountability, and an environment conducive to innovation.

Q.9. State any four features of informal organisation?

Ans. Four features of informal organization are:

Emerges Spontaneously: Informal organization arises naturally within a formal organization. It is not intentionally designed or officially established by management. Instead, it emerges organically as employees develop social connections, form friendships, and establish informal networks based on common interests or shared objectives.

Based on Social Relationships: Informal organization is characterized by social relationships and personal interactions among employees. It is built on informal social networks, such as friendships, trust, and common interests, rather than formal hierarchical relationships. These social relationships often transcend formal lines of authority and influence communication, decision-making, and work dynamics.

Unofficial Communication Channels: Informal organization relies on informal communication channels that operate outside the official formal communication channels of the organization. Informal communication occurs through casual conversations, informal meetings, grapevine or rumor mill, and electronic communication tools like social media or instant messaging platforms. Information and knowledge often flow more quickly and freely through informal channels.

Dynamic and Flexible: Informal organization is dynamic and flexible, adapting to the changing needs and circumstances within the formal organization. It can bridge gaps in formal structures, fill communication voids, and facilitate the exchange of information and support among employees. Informal networks can also facilitate problem-solving, innovation, and collaboration, as they allow individuals to connect with colleagues who possess relevant knowledge or expertise.

Overall, informal organization complements the formal structure of an organization by fostering social relationships, informal communication, and flexibility. It can enhance employee satisfaction, facilitate collaboration, and contribute to the overall functioning and effectiveness of the organization.

Q.10. Explain any two advantages and any two disadvantages of informal organistion?

Ans. Two advantages of informal organization are:

Increased Communication and Information Flow: Informal organization encourages open and informal communication among employees. It creates a supportive and friendly work environment where employees feel comfortable sharing information, ideas, and concerns. This free flow of communication can lead to better coordination, problem-solving, and innovation within the organization.

Rapid Response to Change: Informal organization is flexible and adaptable to changes in the organizational environment. Informal networks can quickly disseminate information, react to challenges, and mobilize resources. In times of change or crisis, informal organization can be instrumental in facilitating quick decision-making and action, as employees rely on their social connections to collaborate and address emerging issues.

Two disadvantages of informal organization are:

Lack of Formal Structure and Accountability: Informal organization operates outside the formal structure and hierarchy of the organization. As a result, there may be a lack of clear roles, responsibilities, and accountability. Decisions made within informal networks may not align with the organizational goals or policies, leading to conflicts and confusion.

Formation of Cliques and Favoritism: In informal organization, there is a risk of forming cliques or exclusive groups based on personal relationships or interests. This can lead to favoritism, exclusion of certain individuals or departments, and the formation of informal power dynamics. It may undermine teamwork, fairness, and overall organizational cohesion.

While informal organization can have its advantages in promoting communication and adaptability, it is essential for management to strike a balance between formal and informal structures. Clear communication channels, strong leadership, and a supportive organizational culture can help harness the benefits of informal organization while minimizing its potential drawbacks.

Q.11. Explain:

(a) Benefits of specialization and

(b) Development of personnel as importance of organizing

Ans. (a) Benefits of Specialization:

Specialization refers to dividing tasks and responsibilities based on individual skills, expertise, and knowledge. It plays a crucial role in organizing and has several benefits:

Increased Efficiency and Productivity: Specialization allows individuals to focus on tasks that align with their skills and expertise. When employees specialize in specific areas, they become more proficient and efficient, leading to increased productivity. By concentrating on their strengths, employees can perform tasks more effectively and deliver higher-quality outputs.

Time and Cost Savings: Specialization enables employees to become experts in their specific roles, which can result in time and cost savings. When employees are specialized, they require less time to switch between tasks or acquire new skills, leading to improved efficiency and reduced training costs. The division of labor also allows for economies of scale, as processes can be streamlined and optimized.

Improved Quality and Expertise: Specialization allows individuals to develop deep knowledge and expertise in their specialized areas. This leads to better quality outcomes as specialized employees can apply their skills, experience, and knowledge to their work. Additionally, specialization enables organizations to access specialized talent and skills that may not be readily available in a generalist approach.

(b) Development of Personnel as Importance of Organizing:

Organizing is important for personnel development within an organization. It facilitates the following:

Career Growth and Advancement: Organizing provides a structured framework for defining roles, responsibilities, and career paths within the organization. It helps identify opportunities for employees to develop and progress in their careers. Clear job descriptions, reporting relationships, and hierarchical structures enable employees to understand their career trajectories and work towards their professional goals.

Skill Enhancement and Learning: Organizing involves identifying the skills and competencies required for different positions. It allows organizations to design training and development programs to enhance employees' skills and capabilities. By aligning the organization's goals with individual development needs, organizing promotes continuous learning and skill enhancement.

Succession Planning: Effective organizing ensures that there is a pipeline of talent ready to assume higher positions within the organization. It involves identifying and grooming potential leaders and successors for key roles. By providing opportunities for personnel development, organizing ensures a smooth transition of responsibilities and minimizes disruptions in case of retirements, promotions, or departures.

Overall, organizing plays a vital role in personnel development by creating a supportive and structured environment for career growth, skill enhancement, and succession planning. It enables employees to reach their full potential and contributes to the long-term success of the organization.

Q.12. Explain:

(a) Adaptation to change and

(b) Effective administration as importance of organizing

Ans. (a) Adaptation to Change:

Organizing is important for adaptation to change within an organization. It provides the necessary framework and structure to effectively respond to internal and external changes. Here's how organizing facilitates adaptation:

Flexibility and Agility: Organizing allows for the allocation and reallocation of resources, roles, and responsibilities based on changing circumstances. It enables the organization to quickly adapt to new market conditions, technological advancements, customer preferences, and other external factors. By having a well-structured and adaptable organizational framework, the organization can respond swiftly and efficiently to changes.

Coordination and Collaboration: Organizing establishes clear lines of communication, coordination, and collaboration within the organization. It ensures that different departments, teams, and individuals work together towards common goals. This collaborative environment enhances the organization's ability to respond to changes as information flows smoothly, decisions are made collectively, and resources are allocated effectively.

Innovation and Creativity: Organizing can foster a culture of innovation and creativity within the organization. By providing clear roles and responsibilities, it allows employees to focus on their core tasks while also encouraging them to explore new ideas and approaches. Effective organizing supports cross-functional collaboration and the sharing of diverse perspectives, leading to innovative solutions and adaptability in the face of change.

(b) Effective Administration:

Organizing is important for effective administration within an organization. It establishes the structure, roles, and processes necessary for efficient management and administration. Here's how organizing contributes to effective administration:

Clear Roles and Responsibilities: Organizing defines clear roles and responsibilities for each position within the organization. It ensures that there is clarity regarding who is accountable for specific tasks and decisions. This clarity helps avoid confusion, duplication of efforts, and conflicts. It enables effective delegation and empowers employees to take ownership of their roles.

Optimal Resource Allocation: Organizing involves determining resource requirements and allocating resources in an optimal manner. It ensures that resources such as human capital, finances, and equipment are allocated based on the organization's priorities and needs. Effective resource allocation maximizes productivity, minimizes wastage, and supports efficient administration.

Streamlined Processes: Organizing establishes efficient workflows and processes within the organization. It defines the sequence of tasks, interdependencies, and reporting relationships. Streamlined processes improve coordination, reduce bottlenecks, and enhance overall operational efficiency. Effective administration relies on well-designed processes that facilitate smooth and timely execution of tasks.

In summary, organizing enables an organization to adapt to change and ensures effective administration by fostering flexibility, coordination, innovation, clear roles, optimal resource allocation, and streamlined processes. It sets the foundation for efficient management and helps the organization navigate challenges and achieve its objectives.

Q.13. Explain:

(a) Expansion and growth and

(b) Optimum utilization of resources as importance of organizing

Ans. (a) Expansion and Growth:

Organizing plays a crucial role in the expansion and growth of an organization. It provides the necessary structure and framework to support the organization's growth objectives. Here's how organizing contributes to expansion and growth:

Scalability: Organizing allows the organization to scale its operations as it expands. It ensures that the organizational structure can accommodate an increasing number of employees, departments, and functions. By defining clear lines of authority, responsibilities, and reporting relationships, organizing enables the organization to effectively manage growth without losing control or efficiency.

Coordination and Integration: As the organization grows, the complexity of its operations increases. Organizing helps in coordinating and integrating various departments, teams, and functions. It ensures that different parts of the organization work together towards common goals, avoiding duplication of efforts and promoting synergy. Effective coordination supports smooth workflow, reduces conflicts, and facilitates collaboration.

Specialization and Efficiency: With growth, there is often a need for specialized roles and expertise. Organizing allows for the specialization of tasks and the development of specialized departments or teams. Specialization enhances efficiency as individuals can focus on their areas of expertise, leading to improved productivity and quality of work. It also enables the organization to leverage the skills and knowledge of its employees more effectively.

(b) Optimum Utilization of Resources:

Organizing is essential for the optimum utilization of resources within an organization. It ensures that resources are allocated efficiently to achieve maximum productivity and minimize waste. Here's how organizing contributes to the optimum utilization of resources:

Resource Allocation: Organizing involves determining the resource requirements of different functions and allocating resources accordingly. This includes human resources, financial resources, technology, and other assets. By aligning resources with organizational goals and priorities, organizing helps in avoiding resource shortages or excesses, leading to their optimal utilization.

Task Assignment and Coordination: Organizing assigns tasks and responsibilities to individuals or departments based on their skills, capabilities, and availability. It ensures that tasks are allocated to the most suitable resources, optimizing their utilization. Furthermore, organizing facilitates coordination among different tasks and functions, enabling efficient use of resources by minimizing conflicts and redundancies.

Elimination of Duplication and Waste: A well-organized structure ensures that there is no duplication of efforts or resources within the organization. By defining clear roles and responsibilities, organizing helps in identifying and eliminating redundancies. It promotes streamlined processes, reduces unnecessary costs, and minimizes resource wastage, thereby improving overall efficiency.

In summary, organizing is important for the expansion and growth of an organization as it facilitates scalability, coordination, and specialization. It also enables the optimum utilization of resources by ensuring efficient resource allocation, task assignment, and elimination of duplication and waste. By effectively organizing its resources and operations, an organization can achieve sustainable growth and maximize its potential.

Q.14. A steel manufacturing company has the following main jobs:

(A) Manufacturing                        (b) Finance              (c) Marketing

(d) Personnel                      (c) Research and development

Ans. To organize the steel manufacturing company, the following divisional structure can be considered based on the main jobs:

Manufacturing Division: This division would be responsible for the core manufacturing activities of the company. It would include departments such as production, operations, quality control, maintenance, and logistics. The manufacturing division would focus on efficiently producing steel products according to customer requirements and industry standards.

Finance Division: The finance division would handle all financial aspects of the company, including budgeting, accounting, financial planning, and analysis. It would ensure the proper management of financial resources, monitor costs, handle financial reporting, and support decision-making related to investments, funding, and financial strategies.

Marketing Division: The marketing division would be responsible for promoting the company's steel products, identifying market opportunities, conducting market research, and developing marketing strategies. It would handle activities such as branding, advertising, sales, customer relationship management, and market communication. The marketing division would work closely with customers to understand their needs and develop effective marketing campaigns.

Personnel Division (Human Resources): The personnel division would manage all aspects related to human resources. It would handle functions such as recruitment, training and development, performance management, employee relations, compensation and benefits, and organizational culture. The personnel division would focus on attracting and retaining talented employees, fostering a positive work environment, and ensuring compliance with labor laws and regulations.

Research and Development (R&D) Division: The R&D division would be responsible for innovation, product development, and technological advancements in the steel manufacturing company. It would conduct research, design new products, improve existing products, and explore new manufacturing processes or materials. The R&D division would collaborate with other divisions to identify market needs, develop competitive products, and stay ahead of industry trends.

Each division would have its own departmental heads and teams responsible for managing and executing the respective functions. This divisional structure allows for specialization, efficient coordination within each division, and clear accountability for specific areas of work. It enables the company to focus on the unique requirements of each main job while fostering collaboration and cross-functional integration when necessary.

Q.15. With the help of any four points explain the crucial role of organizing ‘function in an enterprise?

Ans. The organizing function plays a crucial role in an enterprise for effective management. Here are four points explaining its crucial role:

Clear Allocation of Tasks and Responsibilities: Organizing ensures that tasks and responsibilities are clearly defined and assigned to individuals or groups within the enterprise. This clarity helps in avoiding confusion and overlapping of work. Each person knows their roles and responsibilities, which leads to improved efficiency and productivity. It also promotes accountability as employees are aware of their specific duties and are held responsible for their performance.

Optimum Resource Utilization: Organizing involves identifying and allocating resources effectively to achieve the desired objectives. It ensures that resources such as human capital, finances, materials, and equipment are allocated in the most efficient and cost-effective manner. By aligning resources with the organizational goals, organizing helps in maximizing their utilization and minimizing wastage.

Coordination and Collaboration: Organizing establishes a framework for coordination and collaboration among different individuals, departments, and teams within the enterprise. It facilitates effective communication, cooperation, and teamwork, enabling the smooth flow of information and activities. Proper coordination ensures that various parts of the organization work together towards common goals, leading to better overall performance.

Adaptation to Change: Organizing provides the flexibility and adaptability necessary for an enterprise to respond to changes in the internal and external business environment. It allows for the reorganization of tasks, roles, and structures as per the evolving needs and circumstances. Through regular evaluation and adjustment, organizing ensures that the enterprise remains agile and capable of meeting new challenges and opportunities.

In summary, organizing plays a crucial role in an enterprise by establishing clear roles and responsibilities, optimizing resource utilization, facilitating coordination and collaboration, and enabling adaptation to change. It provides the structure and framework necessary for effective management and helps in achieving organizational objectives efficiently.

Q.16.Explain the steps in the process of organizing?

Ans. The process of organizing involves a series of steps to establish the structure, allocate resources, and define roles and responsibilities within an organization. Here are the steps in the process of organizing:

Determining Objectives: The first step is to identify and determine the objectives or goals of the organization. This provides a clear direction and purpose for the organizing process. Objectives can include increasing productivity, improving efficiency, expanding market share, or any other desired outcome.

Division of Work: In this step, the work is divided into specific tasks and activities. Each task is assigned to individuals or groups based on their skills, expertise, and job responsibilities. The division of work ensures that all tasks are covered and helps in establishing a systematic workflow.

Establishing Relationships: The next step is to establish relationships among individuals or groups within the organization. This includes defining the reporting hierarchy, establishing lines of authority and communication, and creating a formal structure. Relationships can be hierarchical, matrix-based, or project-based, depending on the organization's needs and objectives.

Allocation of Resources: Resources such as human resources, finances, materials, and equipment need to be allocated effectively. This step involves identifying the resources required for each task or activity and ensuring their availability and proper utilization. It also involves budgeting and resource allocation decisions to optimize the use of available resources.

Delegation of Authority: Delegation of authority is the process of assigning decision-making authority to individuals at various levels within the organization. This step involves granting authority to individuals to make decisions, take actions, and be accountable for their assigned tasks. Proper delegation empowers employees, encourages initiative, and improves organizational efficiency.

Establishing Communication Channels: Effective communication is essential for smooth coordination and collaboration within an organization. This step involves establishing formal and informal communication channels to facilitate the flow of information, feedback, and instructions. It can include meetings, reports, memos, emails, and other communication tools.

Coordination: Coordination ensures that all activities and efforts within the organization are aligned towards achieving the common objectives. This step involves establishing mechanisms for coordination, such as regular meetings, teamwork, and interdepartmental collaboration. It helps in avoiding conflicts, resolving issues, and ensuring that everyone is working together towards organizational goals.

Monitoring and Review: The final step is to monitor and review the organizing process. This involves evaluating the effectiveness of the established structure, identifying any gaps or areas for improvement, and making necessary adjustments. Regular monitoring and review help in maintaining an efficient and adaptive organizational structure.

Overall, the process of organizing involves determining objectives, dividing work, establishing relationships, allocating resources, delegating authority, establishing communication channels, coordinating activities, and monitoring progress. These steps ensure that the organization is structured, well-coordinated, and aligned towards achieving its goals effectively.

Q.17. Explain the concept of functional structure of an organisation Also explain any four disadvantages of functional structure?

Ans. The functional structure of an organization is a hierarchical arrangement where employees are grouped based on their specific functions or areas of expertise. Each functional department or unit is responsible for carrying out specific tasks related to their function. For example, departments such as finance, marketing, human resources, and operations are common functional units within an organization.

 

The concept of a functional structure offers several advantages, such as:

 

Specialization and Expertise: Functional structure allows employees to specialize in their respective functions and develop expertise in their specific areas. This specialization promotes efficiency and enhances the quality of work.

Clear Career Paths: Functional structure provides clear career paths for employees within their respective functional areas. It allows for vertical growth and advancement within a specific function, providing employees with opportunities to enhance their skills and knowledge.

Efficient Resource Allocation: Functional structure enables efficient allocation of resources by centralizing similar resources within a functional department. This facilitates better coordination and utilization of resources, leading to cost savings and improved resource management.

Focus on Core Competencies: By organizing the organization into functional units, the functional structure allows the organization to focus on its core competencies. Each functional unit can concentrate on its specific tasks and responsibilities, contributing to the overall success of the organization.

However, functional structure also has certain disadvantages, including:

Lack of Communication and Coordination: Functional structure can create communication and coordination challenges between different functional units. As each unit operates independently, there may be limited communication and collaboration between functions, leading to silos and information gaps.

Slow Decision-Making: In functional structure, decision-making can be slow and bureaucratic, especially when cross-functional decisions need to be made. The decision-making process may involve multiple levels of approval and coordination, leading to delays and inefficiencies.

Lack of Flexibility and Adaptability: Functional structure may hinder flexibility and adaptability in response to changing market conditions or organizational needs. As departments are organized around specific functions, it can be challenging to quickly reallocate resources or reconfigure the structure to address new opportunities or challenges.

Potential for Functional Bias: Functional structure can lead to a narrow perspective and functional bias, where employees prioritize their functional objectives over the overall organizational goals. This can hinder collaboration and the integration of different functions towards a common purpose.

It is important for organizations to carefully consider these advantages and disadvantages when deciding on their organizational structure and to find a balance that best suits their specific needs and objectives.

Q.18.What is meant by functional structure of an organisation? State any five advantages of this form of organistional structure?

Ans. The functional structure of an organization is a type of organizational structure where employees are grouped based on their specific functions or areas of expertise. In this structure, departments or units are created for different functions such as finance, marketing, human resources, operations, and so on. Each department is responsible for carrying out tasks related to their specific function.

Advantages of functional structure:

Specialization: Functional structure allows employees to specialize in their respective functions and develop expertise in their specific areas. This specialization leads to increased efficiency and effectiveness in performing tasks.

 

Clear Hierarchy: Functional structure provides a clear hierarchy within the organization. Employees know their reporting lines and have a clear understanding of their roles and responsibilities within their functional department.

Efficient Resource Allocation: Functional structure enables efficient allocation of resources by centralizing similar resources within each functional department. Resources such as equipment, technology, and expertise can be concentrated and utilized effectively.

Career Development: Functional structure offers clear career paths for employees within their respective functional areas. Employees can focus on developing their skills and knowledge in their specialized function, leading to vertical growth and advancement opportunities.

Expertise and Knowledge Sharing: Functional structure facilitates the sharing of expertise and knowledge within the same function. Employees can collaborate, learn from each other, and develop best practices that can benefit the entire organization.

Overall, the functional structure allows organizations to effectively organize their activities based on functions and take advantage of specialization and expertise within each functional area. It promotes efficiency, clear hierarchy, and focused development of employees' skills, contributing to the overall success of the organization.

Q.19. Differentiate between formal and informal organisation on the basis of the following:

(a) Meaning              (b) origin                (C) Authority                      (d) Behaviour

                                                   Or

Write any four differences between formal organistion and informal organistion.

Ans. Differences between formal organization and informal organization:

 

Meaning:

Formal Organization: It refers to the structured and planned arrangement of roles, responsibilities, and relationships within an organization. It follows established rules, procedures, and authority.

Informal Organization: It refers to the spontaneous and emergent social structure that develops within an organization based on personal relationships, interactions, and shared interests among employees.

Origin:

Formal Organization: It is intentionally created by the management or top-level authority of the organization to achieve specific goals and objectives.

Informal Organization: It arises naturally as a result of social interactions, shared interests, and personal relationships among individuals in the organization. It is not deliberately created or planned.

Authority:

Formal Organization: Authority in a formal organization is derived from the official hierarchical structure and is based on designated positions and roles. It is formalized through the chain of command.

Informal Organization: Authority in an informal organization is not based on formal positions or designations but on personal influence, expertise, and social relationships. It is derived from the trust and respect earned by individuals within the informal networks.

Behavior:

 

Formal Organization: Behavior in a formal organization is governed by rules, policies, and procedures. It is more task-oriented and follows the prescribed code of conduct.

Informal Organization: Behavior in an informal organization is driven by personal relationships, social norms, and shared values. It is more flexible, spontaneous, and influenced by personal preferences and informal social dynamics.

These differences highlight that formal and informal organizations differ in their structure, origin, authority, and behavior. Formal organizations are planned and structured, while informal organizations arise naturally based on social interactions. Authority in formal organizations is derived from positions, while in informal organizations, it is based on personal influence. Behavior in formal organizations is guided by rules, while in informal organizations, it is shaped by personal relationships.

Q.20. Give the meaning of informal organisation and state any five features of it?

Ans. Informal Organization:

Informal organization refers to the network of social relationships and interactions that emerge spontaneously among individuals within a formal organization. It is an unofficial and unplanned system that exists alongside the formal structure and has its own patterns of communication, influence, and social dynamics.

 

Features of Informal Organization:

Emergence: Informal organization arises naturally among employees based on personal relationships, shared interests, and social interactions. It is not deliberately created or planned by the management.

 

Social Networks: It is characterized by the formation of social networks and informal groups within the organization. These groups can be based on factors such as friendship, common interests, or shared experiences.

Informal Communication: Informal organization relies on informal channels of communication that operate outside the formal lines of authority. Informal communication includes informal conversations, grapevine communication, and social interactions among employees.

Influence and Power: Informal organization can have its own system of influence and power, which is based on personal relationships, expertise, and social connections. Individuals within informal networks can have significant influence and impact on decision-making and the overall functioning of the organization.

Flexibility and Adaptability: Informal organization provides flexibility and adaptability to the formal structure. It allows employees to collaborate, share information, and respond quickly to changes or challenges that may arise in the work environment.

These features highlight the informal aspects of an organization, which are based on the social relationships, interactions, and communication among employees. Informal organization plays a significant role in shaping the organizational culture, employee satisfaction, and overall effectiveness of the formal structure.

 

A. One Word or One line Questions

 

Q. 1. What is Organising?

 Ans. Organising refers to that function of management under which physical and human resources of the organisation are organised in an appropriate structure.

 

Q. 2. What is the other name of staff organisation?

Ans. Functional organisation.

 

Q. 3. What is Divisional Structure?

Ans. Under divisional structure, an organisation is divided in different divisions on the basis of the number of products being produced.

 

Q. 4. What is formal organisation?

Ans. Such an organisation which is established by the management after deliberate planning is known as formal organisation.

 

Q. 5. What is Informal Organisation?

Ans. Such an organisation which emerges automatically as a network of personal and social relations among employees is known as informal organisation.

 

 B. Fill in the Blanks

 

1. Formal organisation is very stable due to well defined structure.

2. Organisational structure establishes authority-responsibility relationship between various positions.

3. In functional organisation subordinates receive orders from many bosses.

4. In informal organisation, leader is usually chosen by the group members.

 5. Divisional structure is suitable to an organisation which produces several products.

6. Divisional structure is not suitable to small organisations.

 

 

 C. True or False

 

1. A formal leader is usually chosen by the group members. False

2. An informal organisation gets created within a formal organisation. True

 3. Delegation of authority does not reduce the work load of a manager. False

4. Divisional structure promotes specialization. True

 

 

D. MCQ

 

 1. In which respect, does formal organisation differ from informal organisation?

(a) Financial procedure                               (b) Structure

(c) Production process                                (d) None of above.

Ans. (b) Structure

2. In an organisation, organisational structure determines

(a) Level of authority                                  (b) Responsibility

(c) Hierarchy                                                 (d) All the above.

Ans. (d) All the above.

 

3. Which of the following is an officially created structure?

(a) Formal organisation                             (b) Informal organisation

(c) Both of these                                         (d) None of these.

Ans. (a) Formal organisation

 

4. Who among the following is not a shop specialist?

(a) Disciplinarian                                         (b) Inspector

(c) Gang boss                                                (d) Speed boss

(a) Disciplinarian

 

5. Functional structure is based on:

(a) Experience of persons                           (b) Specialisation

(c) Relations among persons                      (d) None of these

(b) Specialisation

 

6. Which of the following is a step in the process of organising?

(a) Division of work                           (b) Delegation of authority

(c) Both (a) and (b)                             (d) None of these.

(c) Both (a) and (b)

7. Which type of organisation has no written rules and regulations?

(a) Formal organisation                                (b) Informal organisation

(c) Both (a) and (b)                                         (d) None of these.

(b) Informal organisation

 

Two Marks Questions:-

 

Q. 1. Define organising.

Ans. Organising refers to that function of management under which physical and human resources of the organisation are organised in an appropriate structure and in a systematic manner so that plans may be implemented for achieving the objectives of the organisation.

 

Q. 2. What is meant by Functional Structure?

Ans. Such a structure in which all the functions of the organisation are classified into various functional departments, is known as functional structure. Under such a structure, all the related or uniform activities are grouped together under one department and an expert is appointed as head of each department. This head runs all the activities of the department and gets the entire work of the department done by his subordinates.

 

Q. 3. What is meant by Divisional Structure?

Ans. Divisional Structure: Under divisional structure, an organization is divided in different divisions on the basis of the number of products being produced. Hence, under divisional structure, an organization is a combination of many business units or divisions. Out of these, every division performs multiple roles. The structure of every division is organized on the pattern of functional structure.

Q. 4. What is formal organisation?

Ans. Such an organisation which is established by the management after deliberate planning so that objectives of the organisation may be achieved, is known as formal organisation.

 

Q. 5. State the meaning of informal organisation.

Ans. Such an organisation which emerges automatically as a network of personal and social relations among employees is known as informal organisation.

 

Four Marks Question:

 

Q. 1. Write any four features of organising.

Ans. 1. A System of Group of People: Any organisation is a unique system of a group of people. This group of people is organised in a specific structure under the process of organising so that objectives of the organisation may be achieved.

2. Basic Function of Management: Organising is also a basic function of management. In order to achieve the objectives of the organisation, management performs the function of organising.

3. Based on Division of Work: The process of organising is based on the division of work in the organisation. Under this process, the total work of the organisation is divided in various tasks and activities.

4. Goal of Achievement of Objectives: The goal of the process of organising is the achievement of the objectives of the organisation.

 

Q. 2. Explain any four points enumerating the importance of organising.

Ans. 1. Division of Work: Under the process of organising, the total work of the organisation is divided and the responsibility for every task is assigned to a specific employee. Hence, the process of organising improves the efficiency of the organisation.

2. Specialization: Under organising, every task is assigned to a specific employee after division of work. Hence, organising promotes specialization in the organisation.

3. Optimum Utilization of Resources: Under the process of organising, an ideal structure of the organisation is created for the optimum utilization of physical resources, financial resources and human resources.

4. Determination of Well Defined Functional Relations: Under the process of organising, it is clearly determined in the organisation that from whom an employee will get orders and directions, and to which superior that employee will be accountable. This helps to clearly determine the functional relations in the organisation.

 

Q. 3. Explain any four objectives of Organising.

Ans. 1. To Help Management: The primary objective of organising is to help the management in the achievement of organisational objectives. In order to do so, proper division of work, delegation of authority and determination of responsibility are done under the process of organising.

2. To Facilitate Growth and Diversification: Proper division of work under organising results in the improvement of the efficiency which helps in the growth and diversification of the organisation in the long run.

3. To Increase Production: According to the principle of division of labour, the responsibility for every task is assigned to an efficient and expert employee. As a result, there is increase in production and reduction in cost. These are also the objectives of organising.

4. To Optimise Use of Resources: The process of organizing aims to ensure optimum use of labour through division of labour. Likewise, it also helps to ensure the optimum use of other resources.

Q. 4. Discuss any four principles of organising.

Ans. 1. Principle of Objective: Under organising, in order to create a suitable structure for the organisation, a common objective must be determined for the whole organisation. All the activities of the organisation must be focussed on the achievement of that objective.

2. Principle of Division of Work and Specialization: According to this principle, all the functions of the organisation must be divided among various employees in such a way that every employee gets functions in accordance with his ability and skill. This helps to bring specialization in the organisational functions.

3. Principle of Unity of Command: According to this principle, organisational structure should be such that an employee must get orders from one superior only. If there are more than one superior of any one employee, then it becomes difficult for the employee to follow the orders.

4. Principle of Unity of Direction: According to this principle, there should be 'One Head and One Plan' for all the activities of the organisation having same objectives. If there are more than one head or more than one plan, then the organisation has to face many difficulties.