436 + Interview Questions in ORGANISING IN GENERAL AWARENESS Page 9 InterviewSolution

401.	Distinguish between functional structure and divisional structure on the basis of 'Formation'.
Answer» Functional structure is formed on the basis of functions while divisional structure is formed on the basis of product lines supported by functions.

Discussion

402.	Why does informal oranisation exist within the framework of formal organisation ? Give any three reasons for the emergenece of informal organisations.
Answer» Informal organisations are said to emerge from the formal organisations in the sense that they are created when people working at different profiles and positions in a formal organisation interact with each other outside their purview. 1. Psychological fatigue of routine tasks: Simple and routine tasks in the office and in the factory can have an undesirable influence on the workers. Under such conditions personnel can become bored by their tasks and indifferent to their work an may experience psychological fatigue. Unable to relate their jobs to final output, workers suffer from feelings of meaninglessness, workers also feel powerless to control factors within the environmental. Under such distasteful conditions informal relations in the organization server to preserve the organization from the self destruction that would result from literal obedience to formal polices, rules, regulations and procedures. Informal organizations fill the psychological void I vacuum created by dull, boring and monotonous jobs. It has the capacity to overcome deficiencies built into the formal structure. 2. Desire to socialize with others: Most people like to socialize in order to satisfymore of their social and ego needs on the jobs. “Formal organizations are systems of medieval torture which suppress and subjugate their victim – the individual. He lives in helpless conformity, stripped of his self-esteem in a phony and artificial environment. There is no challenge and chance for psychological fulfillment. Informal organizations provide social satisfaction. Affiliation with the informal groups is more than just friendship; it is a sense of belonging. It gives a man recognition, status and future opportunity to relate too others. Informal organization acts like a ‘safety valve’ to release daily tensions and frustrations on their troubles and will give an opportunity to ventilate their grievances. 3. Source of Protection: Informal organization offers a powerful protection against threatening and oppressive forces. Informal organization increases the feeling of security; it restores some internal and external human values lost because of efforts of achieve efficiency by oversimplifying work. Informal organization serves as a balancing function by giving satisfaction to individual members that the formal structure cannot give. It also assures members a reasonable degree of stability in their interpersonal relationships. In an informal organization the rules for behavior are set by the members not by the management.

Discussion

403.

Explain the differences between Formal Organisation and informal Organisation.

Answer»

Formal organisation	Informal organisation
(1) It is deliberately created by top-level management.	(1) It arises automatically as a result of social interaction among the employees.
(2) It has a predetermined purpose.	(2) It has no pre - determined purpose.
(3) It is highly rigid.	(3) It is more flexible.
(4) Communication is allowed through the scalar chain.	(4) Communication is allowed through all channels networks.
(5) Managers are leaders.	(5) Leaders are chosen voluntarily by the members.
(6) It is based on authority and responsibility.	(6) There is no authority and responsibility relationship.

Discussion

404.	Why does informal organisation exist within the framework of formal organisation? Give any two reasons for the emergence of informal organization
Answer» 1. To full the social needs of the members. 2. To make the communication easy. Advantages There can be faster spread of communication. It helps to full the social needs of the members and this enhances their job satisfaction. Top level managers can know the real feedback of employees on various policies and plans.

404.

Why does informal organisation exist within the framework of formal organisation? Give any two reasons for the emergence of informal organization

Answer»

1. To full the social needs of the members.

2. To make the communication easy.

Advantages

There can be faster spread of communication.
It helps to full the social needs of the members and this enhances their job satisfaction.
Top level managers can know the real feedback of employees on various policies and plans.

Discussion

405.

Hashik studying in your class has opined that there is no difference between formal and informal organisation. Do you agree? Justify your answer.

Answer»

Formal organisation	Informal organisation
1. It is deliberately created by top level management.	1. It arises automatically as a result of social interaction among the employees.
2. it has predetermined purpose	2. It has no predetermined purposes.
3. It id highly rigid.	3. It is more flexible.
4. Communication is allowed through the scalar chain.	4. Communication is allowed through all channels networks.
5. managers are leaders.	5. Leaders are chosen voluntarily by the members
6. It is based on authority and responsibility.	6. There is no authority and responsibility relationship.

Discussion

406.	Which level of managers are responsible for determining formal organisation?
Answer» Top level management

Discussion

407.

Differentiate between formal organisation and informal organisation.

Answer»

Formal organisation	Informal organisation
1. It is deliberately created by top level management.	1. It arises automatically as a result of social interaction among the employees.
2. it has predetermined purpose	2. It has no predetermined purposes.
3. It id highly rigid.	3. It is more flexible.
4. Communication is allowed through the scalar chain.	4. Communication is allowed through all channels networks.
5. managers are leaders.	5. Leaders are chosen voluntarily by the members.
6. It is based on authority and responsibility.	6. There is no authority and responsibility relationship.

Discussion

408.

Distinguish between functional organisation and divisional organisation.

Answer»

Functional Structure	Divisional Structure
1. Formation is based on functions	1. Formation is based on product lines.
2. Functional specialisation	2. Product specialisation
3. Difficult to x responsibility on a department	3. Easy to x responsibility for performance
4. It is economical	4. It is costly.
5. Suitable for small organisation	5. Suitable for big organisation

Discussion

409.	Identify the organisation structure of a transport company having operations throughout India. Explain.
Answer» It is divisional structure. Types of Organisation Structures: The organisational structure can be classified as under two categories. 1. Functional Organisation 2. Divisional Organisation

409.

Identify the organisation structure of a transport company having operations throughout India. Explain.

Answer»

It is divisional structure.

Types of Organisation Structures:

The organisational structure can be classified as under two categories.

1. Functional Organisation

2. Divisional Organisation

Discussion

410.	“Formal organisation when blends with informal organisation result in organisational success.” Comment.
Answer» Formal organisation refers to intentional structure of well defined jobs informally organised enterprises. Such jobs are well defined in terms of authority, responsibility and accountability. It is based on division of labour and specialisation. But informal organisation refers to relationship between individuals in the organisation based on interest, personal attitude, emotions, likes, dislikes etc. The informal organisation is a part of the formal organisation; it cannot be separated. They are the two aspects of the same organisation and are linked to each other. Both are required for the success of an organisation.

410.

“Formal organisation when blends with informal organisation result in organisational success.” Comment.

Answer»

Formal organisation refers to intentional structure of well defined jobs informally organised enterprises. Such jobs are well defined in terms of authority, responsibility and accountability. It is based on division of labour and specialisation.

But informal organisation refers to relationship between individuals in the organisation based on interest, personal attitude, emotions, likes, dislikes etc.

The informal organisation is a part of the formal organisation; it cannot be separated. They are the two aspects of the same organisation and are linked to each other.

Both are required for the success of an organisation.

Discussion

411.	For delegation to be effective it is essential that response be accompanied with necessary.A. AuthorityB. ManpowerC. IncentivesD. Promotions
Answer» Correct Answer - (a) Authority means power to take decision. To carry on the responsibilities , every employee need to have some authority. So, when managers are passing their responsibilities to the subordinates, they also pass some of the authority to the subordinates. Therefore we choose option(a)

Discussion

412.	This structure is followed by large scale service organisation whose activities are geographically spread. Identify the type of organisation structure
Answer» Divisional organisation

Discussion

413.	In an organisation, the network of small social groups based on friendship is called
Answer» Informal organisation

Discussion

414.	Span of management refers toA. Number of managersB. Length of term for which a manager is appointedC. Number of subordinates under a superiorD. Number of members in top management
Answer» Correct Answer - (d) The Span of Management refers to the number of subordinates who can be managed efficiently by a superior. Simply, the manager having the group of subordinates who report him directly is called as the span of management.Therefore option d is correct .

Discussion

415.	Grouping of activities on the basis of product lines is a part ofA. Delegated organisationB. Divisional organisationC. Functional organisationD. Autonomous organisation
Answer» Correct Answer - (b) When activities are grouped together on the basis of different products produced by company then it is known as divisional structure. therefore we choose option (B)

Discussion

416.	The form of organisation known for giving rise to rumours is calledA. Centralised organisationB. Decentralised organisationC. Informal organisationD. Formal organisation
Answer» Correct Answer - (c) Informal organization means - 1. Gets created automatically. 2.Does not follow scalar chain. 3. Include all recreational activities. 4. cut across official lines of communication. 5. For psychological satisfaction and social need of employees . therefore we choose option (c) .

Discussion

417.	The form of organisation known for giving rise to rumours is called
Answer» Informal organisation

Discussion

418.	The form of organisation known for giving rise to rumours is called (a) centralised organisation (b) decentralised organisation (c) informal organisation (d) formal organisation
Answer» (c) As in informal organisation, excess of interactions among people giving rise to rumours.

Discussion

419.	Formal organisation leads toA. freedom and independenceB. procedural delays and delayed decision-makingC. more emphasis on the interpersonal relationsD. faster spreading of information
Answer» Correct Answer - B The formal organisation is a system of well-defined jobs, each bearing a definite measure of authority, responsibility and accountability. Such stringent rules and policies lead to delays in the process.

Discussion

420.	Explain the steps in the process of Organising.
Answer» Organising as a process involves following steps: (i) Identification and Division of Work: The first step in the organising process is identifying and dividing the whole work into manageable activities, so that duplication of work can be avoided and the burden of work can be reduced. (ii) Departmentation: Departmentation refers to the process of grouping the activities of similar nature under the same department. Departmentalisation can be done on the basis of function, type of product, territory etc. It facilitates specialization in an organisation. (iii) Assignment of Duties: This implies assigning duties to the workers according to their abilities and competencies. For getting best results, a proper match should exist between the nature of work and ability of the individual. (iv) Establishing Reporting Relationships: Next step is to allocate authority and responsibility among employees in such a way that each person knows who is reposting to whom and for what, etc.

420.

Explain the steps in the process of Organising.

Answer»

Organising as a process involves following steps:

(i) Identification and Division of Work: The first step in the organising process is identifying and dividing the whole work into manageable activities, so that duplication of work can be avoided and the burden of work can be reduced.

(ii) Departmentation: Departmentation refers to the process of grouping the activities of similar nature under the same department. Departmentalisation can be done on the basis of function, type of product, territory etc. It facilitates specialization in an organisation.

(iii) Assignment of Duties: This implies assigning duties to the workers according to their abilities and competencies. For getting best results, a proper match should exist between the nature of work and ability of the individual.

(iv) Establishing Reporting Relationships: Next step is to allocate authority and responsibility among employees in such a way that each person knows who is reposting to whom and for what, etc.

Discussion

421.	'Organising involves a series of steps in order to achieve the desired goals.' Explain these steps.
Answer» Organising as a process involves following steps: (i) Identification and Division of Work: The first step in the organising process is identifying and dividing the whole work into manageable activities, so that duplication of work can be avoided and the burden of work can be reduced. (ii) Departmentation: Departmentation refers to the process of grouping the activities of similar nature under the same department. Departmentalisation can be done on the basis of function, type of product, territory etc. It facilitates specialization in an organisation. (iii) Assignment of Duties: This implies assigning duties to the workers according to their abilities and competencies. For getting best results, a proper match should exist between the nature of work and ability of the individual. (iv) Establishing Reporting Relationships: Next step is to allocate authority and responsibility among employees in such a way that each person knows who is reposting to whom and for what, etc.

421.

'Organising involves a series of steps in order to achieve the desired goals.' Explain these steps.

Answer»

Organising as a process involves following steps:

(i) Identification and Division of Work: The first step in the organising process is identifying and dividing the whole work into manageable activities, so that duplication of work can be avoided and the burden of work can be reduced.

(ii) Departmentation: Departmentation refers to the process of grouping the activities of similar nature under the same department. Departmentalisation can be done on the basis of function, type of product, territory etc. It facilitates specialization in an organisation.

(iii) Assignment of Duties: This implies assigning duties to the workers according to their abilities and competencies. For getting best results, a proper match should exist between the nature of work and ability of the individual.

(iv) Establishing Reporting Relationships: Next step is to allocate authority and responsibility among employees in such a way that each person knows who is reposting to whom and for what, etc.

Discussion

422.	Which form of organisation focuses on work and achievement of goals? State three features of such organisation.
Answer» Formal organisation focuses on work and achievement of goals. Meaning: It refers to the organisation structure which is designed by the management to accomplish aparticular task. Features: (i) It has Defined Inter-relationship: Formal organisation is a sort of arrangement which clearly defines mutualrelationship. Everybody knows their authority and responsibilities. This clearly shows who will be reporting towhom. (ii) It is Based on Rules and Procedures: It is important to observe all the pre-determined rules and proceduresin the formal organisation. The objectives laid down under planning are thus achieved. (iii) It is Deliberately Created: It is deliberately created in order to achieve the objectives of the organisation inan easy manner.

Discussion

423.	What is functional structure? Under what circumstances it would be appropriate?
Answer» A functional organizational structure is a structure used to organize workers. They are grouped based on their specific skills and knowledge. It vertically structures each department with roles from president to finance and sales departments, to customer service, to employees assigned to one product or service. Functional structure would prove to be most suitable when the size of the organisation is large, has diversified activities and operations require high degree of specialisation. It promotes control and Co-ordination within a department, increased managerial and operational efficiency, results in increased profits.

Discussion

424.	Organisation leads to optimal utilisation of resources which helps inA. prevention of confusionB. minimisation of wastageC. increased project timelineD. Both (a) and (b)
Answer» Correct Answer - D Organising leads to proper assignment of jobs which resures proper usage of materials, financial and human resources, which reduces confusion and wastage of resources.

Discussion

425.	Which of the following is/are true about functional structure?A. It is economical as there is minimal duplication or resourcesB. It is costlier as there is duplication of resourcesC. It is easier to fix responsibility on each divisionD. (b) and (d)
Answer» Correct Answer - A A functional structure is one of the most common organizational structures. Under this structure, the organization groups employees according to a specialized or similar set of roles or tasks. It is economical as there is minimal duplication or resources

Discussion

426.	Once departments are created, each department is placed under the charge of a ………….A. Branch ManagerB. Departmental headC. HR ManagerD. Marketing head
Answer» Correct Answer - B Once departments are created, each department is placed under the charge of a Departmental head

Discussion

427.	Delegation is the administrative process of getting things done through others and sharing authority with them. List out the importance and steps in the process of delegation.
Answer» Importance of Delegation of Authority (1) Reduces the work load of managers : The managers are able to function more efficiently as they get more time to concentrate on important matters. (2) Employee development: Delegation empowers the employees by providing them the chance to use their skills,’gain experience and develop themselves for higher positions. (3) Motivation of employees : Responsibility for work builds the self-esteem of an employee and improves his confidence. He feels encouraged and tries to improvers performance. (4) Facilitation of growth : Delegation helps in the expansion of an organisation by providing a ready workforce to take up leading positions in new ventures. (5) Superior-subordinate relations: Delegation of authority establishes superior subordinate relationships, which are the basis of hierarchy of management. (6) Better co-ordination: The elements of delegation – authority, responsibility and accountability help to avoid overlapping of duties and duplication of effort.

427.

Delegation is the administrative process of getting things done through others and sharing authority with them. List out the importance and steps in the process of delegation.

Answer»

Importance of Delegation of Authority

(1) Reduces the work load of managers :

The managers are able to function more efficiently as they get more time to concentrate on important matters.

(2) Employee development:

Delegation empowers the employees by providing them the chance to use their skills,’gain experience and develop themselves for higher positions.

(3) Motivation of employees :

Responsibility for work builds the self-esteem of an employee and improves his confidence. He feels encouraged and tries to improvers performance.

(4) Facilitation of growth :

Delegation helps in the expansion of an organisation by providing a ready workforce to take up leading positions in new ventures.

(5) Superior-subordinate relations:

Delegation of authority establishes superior subordinate relationships, which are the basis of hierarchy of management.

(6) Better co-ordination:

The elements of delegation – authority, responsibility and accountability help to avoid overlapping of duties and duplication of effort.

Discussion

428.	What is ‘Delegation of Authority’ ? Explain its importance.
Answer» Delegation of Authority : Delegation means the granting of authority to subordinates to operate within the prescribed limits. It enables the manager to distribute his workload to others so that he can concentrate on important matters. Importance of Delegation of Authority (1) Reduces the work load of managers : The managers are able to function more efficiently as they get more time to concentrate on important matters. (2) Employee development: Delegation empowers the employees by providing them the chance to use their skills,’gain experience and develop themselves for higher positions. (3) Motivation of employees : Responsibility for work builds the self-esteem of an employee and improves his confidence. He feels encouraged and tries to improvers performance. (4) Facilitation of.growth : Delegation helps in the expansion of an organisation by providing a ready workforce to take up leading positions in new ventures. (5) Superior subordinate relations: Delegation of authority establishes superior subordinate relationships, which are the basis of hierarchy of management. (6) Better co-ordination: The elements of delegation – authority, responsibility and accountability help to avoid overlapping of duties and duplication of effort.

428.

What is ‘Delegation of Authority’ ? Explain its importance.

Answer»

Delegation of Authority :

Delegation means the granting of authority to subordinates to operate within the prescribed limits. It enables the manager to distribute his workload to others so that he can concentrate on important matters.

Importance of Delegation of Authority

(1) Reduces the work load of managers :

The managers are able to function more efficiently as they get more time to concentrate on important matters.

(2) Employee development:

Delegation empowers the employees by providing them the chance to use their skills,’gain experience and develop themselves for higher positions.

(3) Motivation of employees :

Responsibility for work builds the self-esteem of an employee and improves his confidence. He feels encouraged and tries to improvers performance.

(4) Facilitation of.growth :

Delegation helps in the expansion of an organisation by providing a ready workforce to take up leading positions in new ventures.

(5) Superior subordinate relations:

Delegation of authority establishes superior subordinate relationships, which are the basis of hierarchy of management.

(6) Better co-ordination:

The elements of delegation – authority, responsibility and accountability help to avoid overlapping of duties and duplication of effort.

Discussion

429.	Differntiate between formal and informal organisatin on the basis of orgin.
Answer» Basis of DifferenceMeaning Formal organisation It is an officially defined system of roles and authority (superior subordinate relationship) in an organisation informal organisation It refers to a network of relationships that arise out of informal communication among the employees of an organisationFormation fromal organisation It is deliberately created by the managers. informal organisation They arise spontaneously and are not deliberately created by the managers. Flow communication formal organisationThe flow of communication in a formal organisation is as per the scalar-chain. infromal organisation In an informal organisation communication does not follow a pre-defined path and flows freely.

Discussion

430.	Explain any five benefits of organizing.
Answer» The benefits of organizing are: 1. Benefit of specialization: The total work of an organization is divided into different departments and responsibilities are assigned to different people. This leads to the specialization of work. Right man is placed for right job increase the efficiency of the organization. 2. Clarity in work relationship: Organising helps in establishing working relationship & clearly defines lines of communication and also’ specifies who need to report to whom. This further helps in responsibility of authority which an individual can exercise. 3.Optimum utilization of resources: Organising leads to proper use of materials, financial & human resources. Proper allocation of Jobs helps in avoiding over lapping of work & minimizing use of resources without any wastage. 4.Adaption to changes: Organizing helps in adopting & adjusting to the activities in response to the changes in the external environment. It brings stability & growth to the organization. 5. Effective administration: This helps to avoid confusion & duplication. Clarity in working relationships enables proper extraction of work. Thus management of an enterprise becomes easy & brings effectiveness in administration.

430.

Explain any five benefits of organizing.

Answer»

The benefits of organizing are:

1. Benefit of specialization: The total work of an organization is divided into different departments and responsibilities are assigned to different people. This leads to the specialization of work. Right man is placed for right job increase the efficiency of the organization.

2. Clarity in work relationship: Organising helps in establishing working relationship & clearly defines lines of communication and also’ specifies who need to report to whom. This further helps in responsibility of authority which an individual can exercise.

3.Optimum utilization of resources: Organising leads to proper use of materials, financial & human resources. Proper allocation of Jobs helps in avoiding over lapping of work & minimizing use of resources without any wastage.

4.Adaption to changes: Organizing helps in adopting & adjusting to the activities in response to the changes in the external environment. It brings stability & growth to the organization.

5. Effective administration: This helps to avoid confusion & duplication. Clarity in working relationships enables proper extraction of work. Thus management of an enterprise becomes easy & brings effectiveness in administration.

Discussion

431.	Define organizing. Explain the importance of organizing?
Answer» Organizing is the process of identifying, grouping the work to be performed, delegating authority & responsibility, establishing a relationship & purpose for the people to work most efficiently together to achieve the objectives. The importance of organizing are: 1. Benefit of specialization: The total work of an organization is divided into different departments and responsibilities are assigned to different people. This leads to the specialization of work. Right man placed in right job increase the efficiency of the organization. 2. Clarity in work relationship: Organising helps in establishing working relationship & clearly defines lines of communication and also specifies who need to report to whom. This further helps in responsibility of authority which an individual can exercise. 3. Optimum utilization of resources: Organising leads to proper use of materials, financial & human resources. Proper allocation of Jobs helps in avoiding over lapping of work & minimizing use of resources without any wastage. Adaption to changes: Organizing helps in adopting & adjusting to the activities in response to the changes in the external environment. It brings stability & growth to the organization. 4. Effective administration: This helps to avoid confusion & duplication. Clarity in working relationships enables proper extraction of work. Thus management of an enterprise becomes easy & brings effectiveness in administration. 5. Development of personnel: Sound organizing ensures that every individual is placed on the job for which he is best suited. Such matching of jobs and individuals helps in better use of human talent. It also provides the benefits, which results in economy of organizations & reduction in cost. 6. Expansion & Growth: Organizing promotes growth & diversification of an enterprise. It enables the enterprise to take up new challenges. Organising can easily add more job positions & new product lines, this leads to increase in sales & profit.

431.

Define organizing. Explain the importance of organizing?

Answer»

Organizing is the process of identifying, grouping the work to be performed, delegating authority & responsibility, establishing a relationship & purpose for the people to work most efficiently together to achieve the objectives.

The importance of organizing are:

1. Benefit of specialization: The total work of an organization is divided into different departments and responsibilities are assigned to different people. This leads to the specialization of work. Right man placed in right job increase the efficiency of the organization.

2. Clarity in work relationship: Organising helps in establishing working relationship & clearly defines lines of communication and also specifies who need to report to whom. This further helps in responsibility of authority which an individual can exercise.

3. Optimum utilization of resources: Organising leads to proper use of materials, financial & human resources. Proper allocation of Jobs helps in avoiding over lapping of work & minimizing use of resources without any wastage.

Adaption to changes: Organizing helps in adopting & adjusting to the activities in response to the changes in the external environment. It brings stability & growth to the organization.

4. Effective administration: This helps to avoid confusion & duplication. Clarity in working relationships enables proper extraction of work. Thus management of an enterprise becomes easy & brings effectiveness in administration.

5. Development of personnel: Sound organizing ensures that every individual is placed on the job for which he is best suited. Such matching of jobs and individuals helps in better use of human talent. It also provides the benefits, which results in economy of organizations & reduction in cost.

6. Expansion & Growth: Organizing promotes growth & diversification of an enterprise. It enables the enterprise to take up new challenges. Organising can easily add more job positions & new product lines, this leads to increase in sales & profit.

Discussion

432.	State any two importance of organizing?
Answer» The importance of organizing are: Effective administration, Optimum Utilization of resources.

Discussion

433.	The organisation process starts withA. assignment of dutiesB. establishing reproting relationshipsC. identification and division of workD. departmentalisation
Answer» Correct Answer - C The process of organising starts with the identification and division of work. The whole work is to be divided into manageable activities so that duplication is avoided and work can be completed as per predetermined goals.

Discussion

434.	A company manufacturing sewing machines set up on 1945 by the British promoters follows formal organisation culture in totality. It is facing a lot of problems in delays in decision making. As the result it is not able to adapt to changing business.environment. The work force is also not motivated since they cannot vent their grievances except through formal channels, which involves red tape. Employee turnover is high. Its market share is also declining due to changed circumstances and business environment.You are to advise the company with regard to change it should bring about its organisation structure to overcome the problems faced by it. Give reasons in terms of benefits it will derive from the changes suggested by you. In which sectors can the company diversify, keeping in mind the declining market for the product the company is manufacturing?
Answer» The suggestions are as follows : 1. To overcome the limitations of formal organisation, the management should encourage workers to interact and socialise with each other through get together outings. In this way, everyone will interact and like minded people will come closer. The net result will be more satisfied workforce. 2. The management should try to decentralise organisation structure. 3. The suggested area where the business can be diversified is textile machineries like embroidery units, sequencing units, buttoning units.

434.

A company manufacturing sewing machines set up on 1945 by the British promoters follows formal organisation culture in totality. It is facing a lot of problems in delays in decision making. As the result it is not able to adapt to changing business.environment. The work force is also not motivated since they cannot vent their grievances except through formal channels, which involves red tape. Employee turnover is high. Its market share is also declining due to changed circumstances and business environment.You are to advise the company with regard to change it should bring about its organisation structure to overcome the problems faced by it. Give reasons in terms of benefits it will derive from the changes suggested by you. In which sectors can the company diversify, keeping in mind the declining market for the product the company is manufacturing?

Answer»

The suggestions are as follows :

1. To overcome the limitations of formal organisation, the management should encourage workers to interact and socialise with each other through get together outings. In this way, everyone will interact and like minded people will come closer. The net result will be more satisfied workforce.

2. The management should try to decentralise organisation structure.

3. The suggested area where the business can be diversified is textile machineries like embroidery units, sequencing units, buttoning units.

Discussion

435.	A company manufacturing sewing machines, set-up in 1945 by the British promoters, follows formal organisation culture in totality. It is facing lot of problems in delays in decision-making. As the result, it is not able to adapt to changing business environment. The workforce is also not motivated, since they cannot vent their grievances except through formal channels, which involve red types. Employee turnover is high. Its market share is also declining due to changed circumstances and business environment. Give reasons in terms of benefits, it will derive from the changes suggested by you. In which sectors can the company diversity, keeping in mind the declining market for the product that the company is manufacturing?
Answer» Benefits the company will derive from these changes: (i) Introduction of informal interaction between employees will help in fulfilling social needs of the employees. It will enhance their job satisfaction and give them a sense of belongingness in the organisation. (ii) Quick decision making will also take place since prescribed lines of communication will not be followed and faster spread of information will give quick feedback. (iii) Introduction of employee suggestion system will result in increased motivation for those empolyees who make good suggestions. This also helps in reduction of labour turnover. Introduction of decentralisation will also help in this. (iv) All the above wil help in fulfilling organisational objectives and eliminate the inadequacies of formal structure.

Discussion

436.	A company manufacturing sewing machines, set-up in 1945 by the British promoters, follows formal organisation culture in totality. It is facing lot of problems in delays in decision-making. As the result, it is not able to adapt to changing business environment. The workforce is also not motivated, since they cannot vent their grievances except through formal channels, which involve red types. Employee turnover is high. Its market share is also declining due to changed circumstances and business environment. You are to advise the company with regard to change it should bring about in its organisation structure to overcome the problems faced by it.
Answer» The suggestions are: (i) To oversome the limitations of formal organisation, the management should encourage workers to interact and socialise with each other through get togethers and outings. In this way, everyone will interact and like minded people will come closer. The net result will be more satisfied workforce. (ii) The management should also introduce employee suggestion system so that good suggestion system so that good suggestions can be implemented and rewarded. The communication channels should be open so that a sense of belongingness is created in the company. (iii) The manaement should try to decentralise organisation structure. (iv) The suggested area where the business can be diversified is textile machineries like embroidery units, sequencing units, buttoning units.

Discussion

Explore topic-wise InterviewSolutions in .

Distinguish between functional structure and divisional structure on the basis of 'Formation'.

Why does informal oranisation exist within the framework of formal organisation ? Give any three reasons for the emergenece of informal organisations.

Explain the differences between Formal Organisation and informal Organisation.

Why does informal organisation exist within the framework of formal organisation? Give any two reasons for the emergence of informal organization

Hashik studying in your class has opined that there is no difference between formal and informal organisation. Do you agree? Justify your answer.

Which level of managers are responsible for determining formal organisation?

Differentiate between formal organisation and informal organisation.

Distinguish between functional organisation and divisional organisation.

Identify the organisation structure of a transport company having operations throughout India. Explain.

“Formal organisation when blends with informal organisation result in organisational success.” Comment.

For delegation to be effective it is essential that response be accompanied with necessary.A. AuthorityB. ManpowerC. IncentivesD. Promotions

This structure is followed by large scale service organisation whose activities are geographically spread. Identify the type of organisation structure

In an organisation, the network of small social groups based on friendship is called

Span of management refers toA. Number of managersB. Length of term for which a manager is appointedC. Number of subordinates under a superiorD. Number of members in top management

Grouping of activities on the basis of product lines is a part ofA. Delegated organisationB. Divisional organisationC. Functional organisationD. Autonomous organisation

The form of organisation known for giving rise to rumours is calledA. Centralised organisationB. Decentralised organisationC. Informal organisationD. Formal organisation

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

The form of organisation known for giving rise to rumours is called (a) centralised organisation (b) decentralised organisation (c) informal organisation (d) formal organisation

Formal organisation leads toA. freedom and independenceB. procedural delays and delayed decision-makingC. more emphasis on the interpersonal relationsD. faster spreading of information

Explain the steps in the process of Organising.

'Organising involves a series of steps in order to achieve the desired goals.' Explain these steps.

Which form of organisation focuses on work and achievement of goals? State three features of such organisation.

What is functional structure? Under what circumstances it would be appropriate?

Organisation leads to optimal utilisation of resources which helps inA. prevention of confusionB. minimisation of wastageC. increased project timelineD. Both (a) and (b)

Which of the following is/are true about functional structure?A. It is economical as there is minimal duplication or resourcesB. It is costlier as there is duplication of resourcesC. It is easier to fix responsibility on each divisionD. (b) and (d)

Once departments are created, each department is placed under the charge of a ………….A. Branch ManagerB. Departmental headC. HR ManagerD. Marketing head

Delegation is the administrative process of getting things done through others and sharing authority with them. List out the importance and steps in the process of delegation.

What is ‘Delegation of Authority’ ? Explain its importance.

Differntiate between formal and informal organisatin on the basis of orgin.

Explain any five benefits of organizing.

Define organizing. Explain the importance of organizing?

State any two importance of organizing?

The organisation process starts withA. assignment of dutiesB. establishing reproting relationshipsC. identification and division of workD. departmentalisation