Class 12 Organising Mock Test (CBSE)

Topics in Organising

• Meaning of organising
• Steps in the process of organising
• Importance of organising
• Organisation structure
• Functional structure
• Divisional structure
• Formal and informal organisation
• Delegation
• Elements of delegation
• Decentralisation
• Importance of decentralisation

Organising practice questions with answers

1. Q1Multiple choice·1 mark
   XYZ Ltd. is a large manufacturing firm producing a single line of office furniture. The company is divided into departments such as Production, Marketing, Finance, and Human Resources. This grouping of jobs on the basis of functions leads to a specific type of organisational structure. Identify this structure.

   1. (a)Matrix structure
   2. (b)Divisional structure
   3. (c)Informal organisation
   4. (d)Functional structure
   Show answer and step marks

   1. Correct option: (d) Functional structure, as grouping jobs on the basis of major functions leads to a functional structure suited for a single product line.+1

   Answer: (d)
2. Q2Multiple choice·1 mark
   Apex Enterprises manufactures garments, footwear and consumer electronics. It has set up a separate unit for each product, and each unit has its own manager who looks after the production, marketing and finance of that product and is accountable for its profits or losses. What type of organisational structure is Apex Enterprises using?

   1. (a)Network structure
   2. (b)Divisional structure
   3. (c)Functional structure
   4. (d)Informal organisation
   Show answer and step marks

   1. Correct option: (b) Divisional structure, as the organisation is divided into semi-autonomous units based on product lines where each division is a separate business unit.+1

   Answer: (b)
3. Q3Short answer·2 marks
   State any two points highlighting the importance of decentralisation in an organisation.
   Show answer and step marks

   1. First point, any one of: develops initiative among subordinates: they gain self-reliance and confidence by taking decisions; develops managerial talent for the future: lower managers get trained for higher posts; quick decision making: decisions are taken close to the point of action without approval from many levels; relief to top management: routine decisions are pushed down, leaving top managers free for strategic work; facilitates growth: units get autonomy and compete to perform better; better control: the performance of each department can be evaluated and its managers held accountable; or any other valid point of importance of decentralisation.+1
   2. Second point, a different one from the same list.+1

   Answer: Any two of: develops initiative among subordinates; develops managerial talent for the future; quick decision making; relief to top management; facilitates growth; better control.
4. Q4Short answer·2 marks
   State any two differences between formal and informal organisation.
   Show answer and step marks

   1. First difference, any one of: origin: formal organisation is deliberately created by management, while informal organisation arises spontaneously from social interaction among employees; authority: in formal organisation authority arises from the position held, while in informal organisation it arises from personal qualities; behaviour: formal organisation directs behaviour through rules and procedures, while informal organisation has no set behaviour pattern; flow of communication: in formal organisation communication follows the scalar chain, while in informal organisation it flows in any direction (grapevine); nature: formal organisation is rigid, while informal organisation is flexible; leadership: in formal organisation managers are leaders by position, while in informal organisation leaders are chosen voluntarily by the members; purpose: formal organisation exists to achieve organisational objectives, while informal organisation satisfies the social needs of members; or any other valid difference.+1
   2. Second difference, a different one from the same list.+1

   Answer: Any two of: formal organisation is deliberately created by management, informal arises spontaneously from social interaction; formal authority comes from position, informal from personal qualities; formal behaviour follows rules, informal has no set pattern; formal communication follows the scalar chain, informal flows in any direction; formal is rigid, informal flexible; formal leaders hold positions, informal leaders are chosen by members; formal serves organisational objectives, informal serves members' social needs.
5. Q5Short answer·3 marks
   Define delegation. Explain any two points of its importance in an organisation.
   Show answer and step marks

   1. Definition: delegation is the downward transfer of authority from a superior to a subordinate to perform assigned tasks.+1
   2. First point of importance, any one of: effective management: managers are freed from routine work and can concentrate on important matters; employee development: subordinates get opportunities to use their talents and develop skills for higher posts; motivation of employees: the trust shown builds employees' confidence and encourages them to perform better; facilitation of growth: trained employees are ready to take charge of new units as the organisation expands; basis of management hierarchy: the flow of authority through delegation establishes superior-subordinate relationships; better coordination: clearly defined authority, responsibility and accountability help coordinate activities; or any other valid point of importance of delegation.+1
   3. Second point of importance, a different one from the same list.+1

   Answer: Delegation is the downward transfer of authority from a superior to a subordinate. Any two of: effective management (managers freed from routine work); employee development (subordinates build skills for higher posts); motivation of employees (trust builds confidence); facilitation of growth (trained staff ready for new units); basis of management hierarchy; better coordination.
6. Q6Short answer·3 marks
   Briefly explain the three key elements that constitute the process of delegation.
   Show answer and step marks

   1. Explanation of Authority (the right of an individual to command and make decisions).+1
   2. Explanation of Responsibility (the obligation of a subordinate to properly perform the assigned duty).+1
   3. Explanation of Accountability (the answerability for the final outcome of the assigned task).+1

   Answer: Authority: the right of an individual to command subordinates and take decisions. Responsibility: the obligation of a subordinate to properly perform the assigned duty. Accountability: answerability for the final outcome of the assigned task; it cannot be delegated.

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