1. What do you mean by Organising ? What are its features ?
Ans- Organising can be defined as "identifying and grouping different activities in the organisation and bringing together the physical , financial and human resources to establish most productive relations for the achievement of specific goal of organisation ".
The features of Organising are as follows -
1. Group of persons - Every business requires the services of people . So an organisation exists with a number of persons .
2. Common objectives - There are common objective to be achieved in an organisation . The working in a common direction is an essence of an organisation .
3. Coordination - Their is a need to coordinate the activities of various persons so that their efforts lead to the main goals .
4. Communication- An organisation works with an effective communication system . Every order passes on from upward to downward and reactions to such communications go upward .
2. What do you mean by Formal Organisation and what are its features ?
Ans - It is the structure of relationships created by management for achieving organisational goals. It is an official framework for taking activity . Formal organisation clearly defines the Authority , Responsibility relationships among various people working in an enterprise.
Features -
1. It is officially created structure for the smooth working of the enterprise .
2. Specific rules and procedures are prepared for guiding various actions .
3. It is based on proper division of works .
4. For the guidance of employees an organisation chart is prepared .
5. There is always a balance between Authority and Responsibility .
3. What do you mean by Informal Organisation ? What are its features ?
Ans - It refers to the relationship between people in an organisation based not on formal hierarchy but on personal attitudes , likes and so on . It refers to what people actually do based not on regulations but on some test , choice etc.
Features-
1. As the name suggests , informal organisations is not planned .
2. There are no written rules and regulations in informal organisation .
3. It is formed when people have common interest , similar thinking , same language etc.
4. The membership of formal organisation is voluntary .
5. Informal groups are not generally stable .
4. Difference between Formal and Informal Organisation ?
Ans - 1. Objective - A formal organisation is created to achieve predetermined objectives .
An informal organisation has no predetermined objectives.
2. Stability - Formal organisations are normally stable .
Informal organisations doesn't last long .
3. Flexibility - In formal organisation a rigid structure is followed .
In informal organisation it is highly flexible .
4. Structure - A formal organisation clearly defines a well defined authority , responsibility relationship.
In informal organisation it clearly defines that it is based on human relations.
5. Formation - Formal relations are well planned .
Informal relations originate automatically .
6. Communication - There is a prescribed chain of communication in formal organisation .
There is no specific chain of communication in informal organisation .
5. What are the importance / benefits of Organising ?
Ans - 1. Benefit of specialisation - In organising , the work is divided into different parts and different persons are assigned different activities by doing the same task repeatedly . This will improve his efficiency in productivity .
2. Optimum utilisation of resources - The work of every person is clearly defined and their is no scope for overlapping and duplication of activities . This will help in avoiding waste of resources .
3. Adaptation in change - Organising helps in adaptation to change when business environment changes .
4. Easy coordination - In any enterprise there is a need for coordination the working of various departments . This will bring an automatic coordination in the business .
5. Encourage initiative - A good organisational structure will provide sufficient scope for taking initiative .
6. What are the principles of Organisation ?
Ans - 1. Principles of objective - The enterprise should set up certain aims for the achievement of which various departments should work . So , their must be an objective for the organisation .
2. Principle of Coordination - The coordination of different activities is an important principle of the organisation . Their should be some agency to coordinate the activities of various departments.
3. Principle of Unity of Command- Their should be an unity of command in the organisation . The command should be from top to bottom for making the organisation sound and clear .
4. Principle of Continuity - The organisation should be dynamic and not stable . Their should be always a possibility of making necessary adjustments .
5. Principle of Authority and Responsibility - The Authority flows downward in the line. Though Authority can be delegated yet Responsibility cannot be delegated under any circumstances .
6. Principle of Simplicity -The organisational structure should be simple so their it is easily understood by each and every person .
7. What do you mean by Organisational Structure ?
Ans - Organisational Structure is the established pattern of relationship among components or parts of the organisation . It prescribes the relationship among various positions and activities in the business .
8. What are the different types of Organisational Structure ?
Ans - There are two types of Organisational Structure -
(a) Functional Structure
(b) Divisional Structure .
(a) Functional Structure - It is formed by grouping together the entire work to be done into major functional departments. Each major function of business is organised as a separate department . Here the major function may be further divided into sub- functions . For Example - a manufacturing enterprise has production , marketing , finance etc. departments as a major functions .
Merits - 1. This type of organisation has the benefit of having specialist in each area .
2. The functional organisation provides wide scope for growth and mass production .
3. Functional organisation allows changes in organisation without disturbing the whole work . There is an easy coordination among different departments since they are interdepended on each other .
Demerits - 1. The involvement of more than one person in decision making process slows down it , so much time is taken in taking decision .
2. Multiplicity of experts increases overhead expenses of the organisation .
3. The principle of unity of command is violated here . A subordinate is answerable to many bosses .
(b) Divisional Structure - When a business starts producing diversified products or it starts setting branches at different then the divisional structure is the most suitable form of organisational structure . Under divisional structure , the enterprise is divided into 2 or more divisions depending upon the number of product produced . For example - An enterprise deals in textile products and electronic goods, then their will be two separate divisions for the products .
Merits - 1. Each division works independently therefore decision making is quick .
2. Divisional structure helps top management in expansion and diversification of plans .
3. All activities related to one type of product are grouped under one department , it brings integration and coordination in the activities .
4. Each departments operate independently , hence divisional structure promotes flexibility and initiative .
Demerits - 1. Divisional Structure is expensive since every activity has to be undertaken separately .
2. Their is a tendency to gain autonomy by different divisions , such a tendency may create problems for the top management .
3. Their is sometimes unhealthy competitions among different divisions .
8. What do you mean by Delegation ? What are the elements of Delegation ?
Ans - Delegation is an administrative process of getting things done by others by giving them responsibility . In an organisation , decisions are taken at the top level and the execution is entrusted to Chief Executive . The chief executive assigns the work to departmental managers who in turn delegate the authority for getting a particular work done .
Elements - 1. Assignment of Responsibility - The first step in delegation is the assignment of work to the subordinate i.e. delegation of Authority .
2. Grant of Authority - It is the second element of delegation . The delegator grants authority to the subordinate so that the assigned task is accomplished .
3. Creation of Accountability - Accountability is the obligation of a subordinate to perform the duties assigned to him . Authority flows downward whereas accountability flows upward .
9. What are the principles of Delegation ?
Ans - 1. Principles of Unity of Command - The principle states that a subordinate should report only to a single superior . This will give a sense of personal responsibility .
2. Principle of Parity of Authority and Responsibility - Since authority is the right to carry out assignments and responsibility is the obligations to accomplish it , there should be a balance between the both .
3. Principle of functional defination - The similar activities should be grouped according to enterprise function .
4. Principle of Absoluteness of Responsibility - The responsibility of a subordinate , once he has accepted, the work is absolute to his superior .
5. Principle of Delegation by Result Expected - The Delegation of authority should be based on the basis of results expected . The authority should be sufficient to achieve the desired result .
10. What are the different types of Delegation ?
Ans - 1. General and Specific Delegation - When authority is given to perform general managerial functions like planning , organising , directing , etc., is called General Delegation .
The Specific Delegation may be relate in a particular function or an assigned task .
2. Formal and Informal Delegation - Formal delegation of authority is an part of organisational structure . This type of delegation is part of the normal functioning of the organisation. Informal delegation doesn't arise due to position but according to circumstances .
3. Written or Unwritten Delegation - Written delegation is through letters, circular etc.
Unwritten delegation is through customs, conventions etc.
4. Downward and Upward Delegation - In downward delegation , a superior delegates authority to his immediate sub-ordinate .
Upward delegation takes place when a subordinate assigns some of his task to his superior .
11. What do you mean by Authority , Responsibility and Accountability ?
Ans - (A). Authority - Authority has defined as the rights to command . It is the power to give order and make sure that the order are obeyed . In a business enterprise, authority is in the hands of top management and from their trickle down to lower level .
Features - 1. It is delegated downward .
2. It is the right to command and control subordinate .
3. It is granted to achieve organisational goals .
(B) Responsibility - It is the obligation of an individual to perform certain activities which are assigned to him . When a subordinate is assigned a task then it is his duty to perform it to the best of his ability .
Features - 1. Responsibility is the result of duty assigned .
2. It faces upwards .
3. Responsibility cannot be delegated further .
(C) Accountability - Accountability is the obligation of a subordinate to complete the task entrusted to him . It creates the obligation for the maintenance of responsibility by the superior and an accompanying insistence that the work performed must meet his expectations .
Features - 1. It always moves upward .
2. It cannot be delegated .
3. It is the obligation to carry out responsibility .
12. Difference between Authority and Responsibility ?
Ans - 1. Meaning -In Authority it is a legal right to command subordinates .
In Responsibility it is the obligation of a subordinate to perform the work assigned by his superior .
2. Flow - Authority always flows downward .
Responsibility always flows upward .
3. Delegation - Authority can be delegated .
Responsibility cannot be delegated .
4. Termination - Authority can be terminated by giving a notice.
Responsibility cannot be terminated so easily .
13. What do you mean by Centralisation (Delegation ) ? What are its merits and demerits ?
Ans - Centralisation is a common occurrence in small enterprises . The success of a small enterprise depends upon the dynamic manager who single-handedly commands the running of the enterprise . He takes all the decisions himself and entrusts only implementation to the subordinates . Their is a direct link between the proprietor and his employees .
Merits - 1. Coordination of activities - In the absence of centralisation different segments may pursue their independent policies . This may result in disunity . Coordination of activities of various segments is only facilitated by centralised management .
2. Economies- Centralization of management will bring in economies of large scale. There will be an economy in managerial expenses also .
3. Standardisation of Procedures and systems - Centralisation of Procedures and systems - Centralisation enables standardisation of procedures and systems . It facilitates smooth working in the organisation .
4. Facilitates Evaluation - When same policies are used for all segments of the enterprise , their performance can easily be evaluated and the overall performance will improve .
Demerits - 1. Overburden on few - This system gives all responsibilities to few persons in the organisation . Thus they remain overburdened with routine work.
2. Destroys individual initiative - Centralisation revolves around one person only . Thus it destroys initiative of subordinates .
3. No scope for specialisation - Centralisation doesn't offer any scope for specialisation since all the decisions are taken by only one person .
14. What do you mean by Decentralisation ? What are its merits and demerits ?
Ans - Decentralisation implies the dispersal of decision making power at lower levels of management . When the power to take decisions and formulate policies doesn't lie with one person at the top but is passed on to different persons at various levels, it will be a case of decentralisation .
Merits - 1. Reduces burden to top level - In decentralisation decision making power is deligated to the lower levels relieving top executives of some of their burdens .
2. Quick decisions - Under this system decision making powers are delegated to the level of actual execution . So it quickens the process of decision making .
3. Motivation of subordinates - Under this system subordinates get opportunity for taking decisions independently . Thus they feel motivated under decentralised setup.
4. Sense of Competition - Under this system , the employees of different departments will compete with each other to show better results .
5. Division of Risk - Under this system management can experiment new ideas at one department without disturbing others. This will reduce the risk if things go adverse .
Demerits - 1. Lack of coordination - Under this system, each department enjoys substantial powers . It becomes difficult to coordinate the activities of various segments.
2. Costly - Decentralised system involves heavy overhead expenses. Small scale business units cannot afford to spend higher overhead expenses .
3. Lack of Able managers- Under this system competent persons are not sometimes available as per the requirements . The system will fail if competent employees are not available.
4. Difficulty in Control- Since different units works independently , it becomes difficult to control their activities.
15. What are the differences between Delegation and Decentralisation ?
Ans - 1. Nature - Delegation is individualistic . It involves superiors and subordinates .
Decentralisation is totalistic in nature . It involves delegation from top management to the divisional level .
2. Control - In delegation control rests with the superior .
In decentralisation all the powers are give to concerned departments .
3. Responsibility - In delegation responsibility remains with the delegator . He can delegate authority and not responsibility .
In Decentralisation head of the department is responsible for all activities under him
4. Need - Delegation is essential to get things done by others .
Decentralisation is optional because it is the philosophy of management .
5. Dependence - Decentralisation is not essential for delegation .
Delegation is essential for decentralisation .
6. Feature - An organisation cannot be functional without delegation .
An organisation may be working without decentralisation .
