NCERT Solutions for Class 12 Business Studies Principles and Functions of Management Chapter 5

Organising Class 12

Chapter 5 Organising Exercise Solutions

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Multiple choice questions : Solutions of Questions on Page Number : 142

Q1 :  

Which of the following is not an element of delegation?

(a) Accountability

(b) Authority

(c) Responsibility

(d) Informal Organisation


Answer :

Informal Organisation is not an element of delegation. Delegation refers to the transfer of authority to subordinates. Accountability, responsibility and authority are the major elements of delegation. On the other hand, informal organisation refers to the relationship which arises out of informal communication among the employees in an organisation. Such communication is purely informal in nature and does not involve any formal communication such as that in delegation. 

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Q2 :  

A network of social relationship that arise spontaneously due to interaction at work is called:

(a) Formal Organisation

(b) Informal Organisation

(c) Decentralisation

(d) Delegation


Answer :

A network of social relationship that arise spontaneously due to interaction at work is called informal organisation. It emerges from social interaction and free flow of communication among the employees of an organisation. On the other hand, formal organisation refers to a formal system based on superior-subordinate relationship. Whereas, delegation and decentralisation are concerned with the transfer of authority and responsibility to the subordinates.

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Q3 :  

Which of the following does not follow the scalar chain?

(a) Functional structure

(b) Divisional Structure

(c) Formal organisation

(d) Informal organisation


Answer :

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Q4 :  

A tall structure has a

(a) Narrow span of management

(b) Wide span of management

(c) No span of management

(d) Less levels of management


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Q5 :  

Centralisation refers to

(a) Retention of decision making authority

(b) Dispersal of decision making authority

(c) Creating divisions as profit centers

(d) Opening new centers or branches


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Q6 :  

For delegation to be effective it is necessary that responsibility be accompanied with necessary

(a) Authority

(b) Manpower

(c) Incentives

(d) Promotions


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Q7 :  

Span of management refers to

(a) Number of managers

(b) Length of term for which a manager is appointed

(c) Number of subordinates under a superior

(d) Number of members in top management


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Short answerslong answersmultiple choice questions : Solutions of Questions on Page Number : 143

Q1 :  

Define 'Organising'?


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Q2 :  

Why is delegation considered essential for effective organising?


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Q3 :  

What are the steps in the process of organising?


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Q4 :  

What is divisional structure? Discuss its advantages and limitations.


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Q5 :  

Discuss the elements of delegation.


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Q6 :  

Decentralisation is an optional policy. Explain why an organisation would choose to be decentralised.


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Q7 :  

What does the term 'span of management' refer to?


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Q8 :  

How does informal organisation support the formal organisation?


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Q9 :  

Under what circumstances would functional structure prove to be an appropriate choice?


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Q10 :  

Distinguish between centralisation and decentralisation.


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Q11 :  

Draw a diagram depicting a divisional structure.


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Q12 :  

Can a large sized organisation be totally centralised or decentralised? Give your opinion.


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Q13 :  

Decentralisation is extending delegation to the lowest level. Comment.


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Q14 :  

The form of organisation known for giving rise to rumours is called

(a) Centralised organisation

(b) Decentralised organisation

(c) Informal organisation

(d) Formal organisation


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Q15 :  

Grouping of activities on the basis of product lines is a part of

(a) Delegated organisation

(b) Divisional organisation

(c) Functional organisation

(d) Autonomous organisation


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Q16 :  

Grouping of activities on the basis of functions is a part of

(a) Decentralised organisation

(b) Divisional organisation

(c) Functional organisation

(d) Centralised organisation


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Long answers : Solutions of Questions on Page Number : 144

Q1 :  

How is functional structure different from a divisional structure?


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Principles and Functions of Management - Business Studies : CBSE NCERT Exercise Solutions for Class 12th for Organising will be available online in PDF book form soon. The solutions are absolutely Free. Soon you will be able to download the solutions.

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