Organising – important questions for Boards 2027
CBSE Class 12 Business Studies
Which pair gives examples of criteria that may be used to form departments? (A) Territory and products (B) Salary and seniority (C) Age and attendance (D) Objectives and budgets
Answer
(A) Territory and products — departments may be formed using territory or products as criteria.
What is a functional structure? Include how its departments are formed and coordinated. (1.5 marks)
Answer
A functional structure is an organisational design that groups similar or related jobs together into separate departments. All departments report to a coordinating head. Examples include production, purchase, marketing, accounts and personnel departments.
What should be considered when allocating work to employees? Explain why the nature of a job should be matched with an individual’s ability.
Answer
After departments are formed, each is placed under an individual’s charge, and jobs are allocated according to employees’ skills and competencies. Matching a job’s nature with an individual’s ability ensures effective performance; work should go to those best fitted to perform it well.
State how the ease of fixing responsibility for performance differs between functional and divisional structures. (3 marks)
Answer
1. Functional Structure — Responsibility is difficult to fix on a department. Departments are formed around functions, and fixing responsibility for performance at the departmental level is difficult. 2. Divisional Structure — Responsibility for performance is easy to fix. Departments are organised around product lines, making it easier to identify responsibility for the performance of a particular division.
Explain the meaning of span of management, state what it determines, and describe how an organisation chart and a proper structure support communication and control. (4 marks)
Answer
Span of management shapes the organisational structure and affects how the enterprise is managed. 1. Span of management refers to the number of subordinates that can be effectively managed by a superior. It indicates the superior’s effective span of supervision. 2. The span of management determines the levels of management in the organisational structure. The number of subordinates managed by each superior therefore affects the structure’s levels. 3. An organisation chart shows the organisational structure of a firm. The structure sets out relationships and responsibilities, helping people understand the arrangement of work and authority. 4. A proper organisational structure supports a smooth flow of communication and better control over business operations. It also coordinates individuals and departments so that the enterprise functions as an integrated unit. Thus, an appropriate structure helps management coordinate work and control operations effectively.
State and explain three differences between formal and informal organisations with reference to (i) flow of communication, (ii) nature, and (iii) leadership.
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Explain why an enterprise should have an appropriate organisational structure and review it as the enterprise grows and becomes more complex. (6 marks)
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Why should each employee know who gives them orders and to whom they are accountable? (A) To establish clear authority and reporting relationships that support hierarchy and coordination (B) To remove the need for departments (C) To ensure that all employees perform identical tasks (D) To allow employees to disregard instructions
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Why does a functional structure promote control and coordination within a department? (1.5 marks)
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What is meant by organisational structure? State how it relates to managerial and operating tasks. (2 marks)
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57 more probable questions in this chapter, every one with a full answer.
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