Most Important Case Study Questions for Organizing
Q1. Alliance Ltd. Is engaged in manufacturing plastic buckets. The objective of the company is to manufacture 100 buckets a day. To achieve this, the efforts of all departments are coordinated and interlinked, and an authority-responsibility relationship is established among various job positions. There is clarity on who is to report to whom.
Name the function of management discussed above.
Or
To make the sports day of the school successful the headmaster of the school divided all the activities into task groups each dealing with a specific area like holding events, arrangement of medals, refreshments, etc. Each group was placed under the overall supervision of a senior teacher. The physical education teacher was made responsible for holding different events, the home science teacher for refreshments, and the Math teacher for medals.
Identify the function of management performed by the headmaster in doing so.
Ans. Organizing
Q2. Explain when and why the need is felt for having a framework, within which managerial and operating tasks are performed to accomplish desired goals. Name this ‘framework’ also.
Ans. ‘Organization structure’ is the framework within which managerial and operating tasks are performed.
The need for an adequate organizational structure is felt when an enterprise grows in size or complexity. This is so because as an organization grows, coordination becomes difficult due to the emergence of new functions or an increase in number of products manufactured.
Appropriate organizational structure is needed due to the following reasons:
(a) An organization structure specifies the relationship between people, work, and resources.
(b) An effective organizational structure will result in increased profitability of the enterprise.
(c) A proper organizational structure is essential to ensure a smooth flow of communication and better control over the operations of a business enterprise.
Q3. Piyush runs a factory wherein he manufactures leather shoes. The business is doing well and he intends to expand by diversity into leather bags as well as leather jackets. Which type of organizational structure would you recommend for his expanded organization and why? Give any two reasons.
Ans. Functional structure; because the company produces a single product or a small number of related products.
Q4. A steel Manufacturing Company has the following main jobs:
(a) Manufacturing (b) Finance (c) Marketing
(d) Personnel, and (e) Research and development
Which type of organizational structure will you choose for this type of company and why? State any five advantages of this organizational structure.
Ans. Functional structure, because the company has diversified activities and operations requires a high degree of specialization.
Q5. In an electrical goods manufacturing company, there are four main activities—marketing, production, Finance, and personnel. The General Manager is planning to structure the organization. Which type of organizational structure did he adopt and why? Give two reasons.
Ans. Functional Structure.
Q6. The company has its registered office in Delhi, manufacturing unit in Gurgaon, and marketing and sales departments in Faridabad. The company manufactures consumer products. Which type of organizational structure should it adopt to achieve its target and why?
Ans. Divisional Structure
Q7. Grouping of jobs of similar nature and organizing these jobs as separate departments creates a particular type of organizational structure. Name that type of structure and explain any two merits and demerits of that structure.
Ans. Functional Structure
Q8. A company is manufacturing Televisions, refrigerators, Air Conditioners, Washing Machines, and Gas stoves using different productive resources and is at the threshold of growth, requiring more employees.
Suggest a suitable organizational structure for this company giving reason in support of your answer. Also, explain any three advantages and two limitations of this structure of organizing.
Ans. In the given case, a suitable organizational structure is a ‘Divisional Structure’ since the company manufactures televisions, refrigerators, air conditioners, washing machines, and gas stoves. The company is at the threshold of growth, requiring more employees. That means, the organization will grow; and will need to add more employees; create more division; and introduce new levels of management.
Q9. Shreyaskar runs a locks manufacturing company. He wants to expand his business. For this, he wants to enter into manufacturing of locks for cars as an ancillary company. By doing this, his company will be able to provide many products to car manufacturers.
Which type of organizational structure will be chosen for his factory and why? State any five advantages of this organizational structure.
Ans. Functional structure; because the company produces a single product or a small number of related products
Q10. Mamta runs a factory where she manufactures shoes. The business has been doing well and she intends to expand by diversity into leather bags as well as Western formal wear, thereby making her company a complete provider of corporate wear. This will enable her to market her business unit as the one shop for working women. Which type of structure would you recommend for the expanded organization and why? State any five advantages of this organizational structure.
Ans. The divisional structure is suitable for the expanded business since it will produce multiple products- shoes, leather bags, and Western formal wear. That means, the organization will grow, and will need to add more employees; create more divisions; and introduce new levels of management.
Q11. Bahart Ltd. It manufactures medicines, soaps, and computers. Which type of organizational structure would suit the requirements of such an organization? State any three advantages of this organizational structure.
Ans. Divisional structure.
Q12. A company has the following organizational structure.
(a) Identify the type of organizational structure followed by the company.
(b) state any two advantages of following such a structure.
Ans. (a) Divisional structure
(b) (i) Product specialization.
(ii) Flexibility and initiative.
Q13. The employees of Mehul Ltd. A software company has formed a Dramatic group for their recreation. Name the type of organization so formed and state its three features.
Ans. Informal organization
Features of informal organization.
Q14. Samir Gupta started a telecommunication company, ‘Donira Ltd.’ to manufacture economical mobile phones for the Indian rural market with 15 employees. The company did very well in its initial years. As the product was good and marketed well, the demand for its products went up. To increase production the company decided to recruit additional employees. Samir Gupta, who was earlier taking all decisions for the company had to selectively disperse the authority. He believed that subordinates are competent, capable, and resourceful and can assume responsibility for the effective implementation of their decisions. This paid off and the company was not only able to increase its production but also expanded its product range.
(a) Identify the concept used by Samir Gupta through which he was able to steer his company to greater heights.
(b) Also explain any three points of importance of this concept.
Ans. (a) Decentralization
“Samir Gupta, who was earlier taking all decisions for the company had a selectively disperse the authority. He believed that subordinates are competent, capable, and resourceful and can assume responsibility for effective implementation of their decisions.”
(b) For the importance of decentralization.
Q15. “For effective delegation, the authority granted must be commensurate with the assigned responsibility.” Why?
Ans. This is so because if authority given is more than responsibility. It may lead to misuse of authority and if the responsibility assigned is more than authority, it may make a person ineffective.
Q16. “A manager is of the view that he is not responsible for the quality of work that he has delegated to his subordinate.” Do you agree with his viewpoint? Justify your answer by giving a proper argument.
Or
A sales manager assigned a target of selling 1,000 units in 1 month to 5 salesmen. One of the salesmen fell sick and at the end of one month, only 800 units could be sold. The sales manager feels that he is not responsible for this. Do you agree with his viewpoint?
Ans. No, I disagree with this. A manager can assign tasks or duties and delegate authority to his subordinates. However, he cannot turn a blind eye to how the tasks are performed and how the delegated authority is being exercised. The manager remains accountable for the performance or work that he had delegated to his subordinates.
Q17. “Authority can be delegated but accountability cannot.” Explain the statement.
Ans. Yes, authority can indeed be delegated but accountability cannot according to the principle of absoluteness of accountability. A manager can only delegate authority but not accountability for the performance of the job assigned. For example, the directors of a refrigerator manufacturing firm have asked their production manager to achieve a target production of 100 refrigerators per day. The production manager has asked his five foremen to achieve this target. Two of them could not achieve the target. In this case, the production manager is responsible and accountable for the non-accomplishment of the target. He cannot deny the responsibility and accountability for the activities done or not done by the foremen.
Q18. A company manufacturing sewing machines set up in 1944 follows a formal organizational structure. It is facing a lot of problems such as delays in decision-making. As a result, it is not able to adapt to the changing business environment. The workforce is also not motivated, there is the problem of redtapism and employee turnover is very high.
(a) Advise the company about the change it should bring about in its organizational structure to overcome the problem faced by it.
(b) Give a reason in terms of the benefits it will derive from the changes suggested by you.
(c) In which sector can the company diversify keeping in mind the declining market for the product the company is manufacturing?
Ans. (a) The company should give due importance to the informal organizational structure along with the formal structure. It increases their job satisfaction. This will overcome the problem of lack of motivation. Informal groups can also provide useful communication channels, which may help to transmit information quickly.
(b) Explain the advantages of informal organizational structure.
(c) The company can diversify its activities by introducing embroidery machines. It can also design special machines keeping in mind the requirement of ready-made garment manufacturers etc. By diversifying in the same field, it can get maximum utilization of existing resources.
Q20. Aman, Avneesh, and Amrish have decided to start a business of manufacturing toys. They identified the following main activities which they have to perform:
(a) Purchases of raw material
(b) Purchase of machinery
(c) Arrangement of finance
(d) Production of toys
(e) Sale of toys
(f) Identifying the areas where they can sell their toys
(g) Selection of employees
To facilitate work they thought that four managers should be appointed to look after (a) Production, (b) Finance, (c) Marketing (d) Personnel.
(a) identify the function of management involved in above mentioned para.
(b) Quote the lines from the above para which help you in identifying this function.
(c) State the steps followed in the process of this function of management.
Ans. (a) Organizing
(b) The lines which helped to identify are:
(i) “They identified the following main activities which they have to perform.”
Or
(ii) “To facilitate the work, they thought that four managers should be appointed to look after (a) Production, (b) Finance, (c) Marketing (d) Personnel
Q21. A general Manager observed that the atmosphere in his organization is dull and too much emphasis is laid on structural relations. What should he do so that people working there feel at home?
Ans. He should encourage informal organization in his company. This can be done by opening a canteen, recreation- center, clubs, etc. in the organization. He should generate an atmosphere, where besides doing the work sincerely, people should have good interpersonal relations. Such activities turn the boring workplace into a joyous center.
Q22. A company manufacturing consumer goods has grown in size. It was a market leader but with changes in the economic environment and with the entry of MNCs its market share is declining. The company was following a centralized business model as even minor decisions were in the hands of the top level. Before 1991 this model was suitable for the company but now the company is under pressure to reform.
What changes should the company bring about to retain its market share? Give its three points of importance
Ans. The top management of the company must share decision-making authority with the middle and lower levels. It should introduce the concept of decentralization instead of following complete centralization. In the current scenario of the business environment, there is a need for fast action and quick decision making which is possible only with decentralization.
Q23. The directors of a company found that managing their divisional structure is becoming difficult, though they have a strong management team and workforce. They want to have a good grip over the organization. What should they do?
Ans. It appears that it is difficult to manage the production and marketing of different products being produced at different places. Management can analyze and find out which products are more profitable. The production of the remaining products may be discontinued. The divisional structure may be converted into a functional one and more emphasis may be laid on the profitable products. This way, a better grip may be had on the functional structure.
Q24. In an electrical goods manufacturing company, there are four main activities- marketing, production, finance, and personnel. The general manager is planning to structure the organization. Which type of organizational structure should he adopt?
Ans. Functional structure
Q25. A truck manufacturing company has its registered office in Delhi and manufacturing unit in Chennai. The company manufactures different types of trucks. Its marketing division is located in Noida.
Suggest a suitable organizational structure for this company giving reason in support of your answer. Also, explain any five advantages of this structure of organizing.
Ans. The company should adopt a ‘Functional Structure’ since it manufactures trucks only. The company has separate departments like the manufacturing unit, marketing department, etc. That means the size of the organization is large, it has diversified activities and operations require a high degree of specialization. So, it should adopt a functional structure.
Q26. National Vritech Ltd. Has grown in size. It was a market leader but with changes in the business environment and with the entry of MNCs its market share is declining. To cope with the situation CEO starts delegating some of his authority to the General Manager, who also feels overburdened and with the approval of the CEO disperses some of his authority to various levels throughout the organization. Identify the concept of management discussed above.
Ans. Decentralization.
Q27. A company manufactures washing machines. There is a well-defined system of jobs with clear and definite authority, responsibility, and accountability in the company. However, people are not allowed to interact beyond their officially defined roles. As a result, the company is not able to adapt to the changing business environment. The workforce is also not motivated due to a lack of social interaction. The company is facing problems of procedural delays and inadequate recognition of creative talents.
(i) Suggest how the organization can overcome the problems faced by it.
(ii) Give any two benefits it will derive from your suggestions.
Ans. (i) introduction of informal organization
(ii) Two benefits the firm will derive are:
(a) Faster spread of communication and quick feedback.
(b) it helps to fulfill the social needs of the members and enhances their job satisfaction.
Q28. Identify and state the type of organizational structure that should be followed by the company in the given cases:
(a) Shenoy Ltd. Grows, so it needs to add more employees, create new departments, and introduce new levels of management.
(b) Sagar Ltd. A large organization having diversified activities and operations requires a high degree of specialization.
Ans. (a) Divisional structure
Divisional structure is a type of organizational structure comprising separate business units or divisions, created on a certain basis, e.g., product manufactured.
(b) Functional structure
Functional structure is a type of organizational structure formed by grouping jobs of a similar nature under major functions and organizing these as separate departments.
Q29. One of the steps in the process of organizing is concerned with the allocation of jobs to the members of each department according to their skills and competencies. Identify the step.
Ans. Assignment of duties.
Q30. In Doon Public School, the principal Mr. Gurpreet was on leave for 10 days to attend a seminar in Dubai. He authorized the vice-principal Mrs. Kanika to take charge and assume the responsibilities.
(a) Identify the concept of management followed by the school.
(b) Explain the components of the concept identified above.
Ans. (a) Delegation
(b) Components/ elements of delegation are:
(i) Authority (ii) Responsibility (iii) Accountability
Q31. Divyansh Ltd. Is a fashion garments manufacturing company. At present the company is managed by two managers. He was handling most of the work without any clear-cut demarcation of responsibilities under the direct supervision of Divyansh, the CEO of the company. As the organization is growing it is becoming difficult day by day to manage daily affairs. Divyansh is a management graduate who has learned during his formal studies that work must be divided to get the benefits of specialization. However, he is confused about the organizational structure he should adopt to improve his present situation.
(a) Suggest the most suitable organizational structure for Divyansh Ltd. Give a reason.
(b) State any three advantages of the structure suggested by your offers to Divyansh Ltd.
Ans. (a) Functional structure: Because the company produces a single product. By adopting this structure, the company can create separate departments like production, marketing, finance, etc., which will help to manage its daily affairs easily and obtain the benefits of specialization
(b) Advantages of functional structure.
Q32. In Bharti Ltd. Sales are declining. The marketing manager cannot focus on important aspects like knowing reasons from customers for not creating demand for their products, decisions related to sales strategy, etc. His senior instructs him to give his routine nature jobs to someone else so that he can concentrate on important issues.
(a) Identify the concept of management followed above.
(b) Why there is a need to apply this concept?
Ans. (a) delegation
(b) Delegation is a prerequisite to the efficient functioning of an organization because it enables a manager to use his time on high-priority activities.
Q33. Class XII students of Sam International School, Dwarka decided to work for the school library during summer vacation. They were told to place new books on the bookshelves, replace the old ones, and dispose of all waste. One of the students supervises the work by grouping students, dividing the work, assigning each group their quota, and developing reporting relationships among them.
Identify and explain the process of one of the functions of management referred to above by quoting the lines that help you in identifying the process.
Ans. Process of Organizing
‘One of the students supervises the entire work by grouping students, diving the work, assigning each group their quota, and developing reporting relationships among them.’
Q34. Read the conversation given below and answer the questions:
“I heard about your husband’s promotion. He is now CEO of the company Congratulations!”
(a) Identify and state the type of organization highlighted in the above conversation.
(b) State any two features.
Ans. (a) informal organization.
Interaction among people at work gives rise to a ‘network of social relationships among employees’ called informal organization.
(b) Features of informal organization.
Q35. Read the statement given below and answer the questions:
“The exam department has fixed 15 November for pre-board exam.”
(a) identify and state the type of organizing highlighted in the above statement.
(b) State it’s any two advantages.
Ans. (a) Formal organization.
Formal organization can be defined as the organization structure which is designed and established by the management to achieve organizational goals
Q36. Network Ltd. Is a well-known company in manufacturing cosmetic products. It has a large market share. Last year several multinational companies entered the market. This caused a big fall in the company’s business. The whole responsibility of finding the solution to this problem fell on the shoulders of the General Manager, Mr. Katik. Nw, to keep himself away from the routine activities of the company, he gave some of his authority to the departmental managers. He gave them the freedom also that if they wanted, they could give the same of authority to their subordinates. The departmental managers were already overburdened with the workload. Therefore, they handed over some of their authority to their subordinates. As a consequence of this, on the one hand, the general manager got time to concentrate on important matters, and on the other hand, the feeling of responsibility was aroused in the subordinates. Within a few days, the growth rate of the company appeared to have become fast.
(a) Identify the concept of management discussed in the above case.
(B) Also explain the two points of importance mentioned in the above case.
Ans. (a) Decentralization
(b) (i) Relief to top-level management.
(ii) Develop managerial talent for the future
Q37. Akshit Ltd. An automobile manufacturer decides to set up a new manufacturing unit in a village in Punjab to provide employment opportunities to people living there. The management of the company is planning to structure the organization as there are four main activities; production, marketing finance, and human resources.
(a) Identify the type of organizational structure the company is planning to adopt.
(b) State any two advantages of the organizational structure mentioned above
Ans. (a) Functional structure
(b) For advantages
Q38. ABC Ltd. Has a production department, purchase Department, Finance Department, Marketing Department, and personnel Department. Identify the organizational structure and state its three merits.
Ans. Functional structure
Q39. In connection with the New Year celebration, the employees of Vodafone have formed a small group that organized a feast and conducted entertainment. What type of organization is this? State any two merits of this organization.
Ans. Informal organization.
Q40. Given below are two different statements:
“Employees of marketing departments attending the marriage of the son of a marketing manager.”
“Teachers of a school taking remedial classes of the students who are weak in the subject.”
Read the above statements and identify the type of organization highlighted in each statement. Also, state any two merits of the organization identified in each statement.
Ans. In the first statement- informal organization. For merits
In the second statement- formal organization. For merits
Q41. G.S Alag Ltd. Is a leading textile company. The employees of the company formed an arts club ‘Creative Friends’ to present their artistic talents to fulfill social needs.
Identify the two forms of organization by quoting the lines from the question.
Ans. Formal organization
‘G.S Alag Ltd. Is a leading textile company.’
Informal organization
‘The employees of the company formed an art club ‘Creative Friends’ to present their artistic talents to fulfill social needs.’
Q42. In a company top-level management has not distributed work among the subordinates according to their abilities and skills but has been distributed based on caste and religion.
(a) identify and state the organizing function not followed by the management.
(b) State any two values which have been neglected by the company.
Ans. (a) Assignment of duties
(b) Value Points
(i) Ignorance of democratic values (iv) Narrow-mindedness
(ii) Promotion of castism (v) Non- consideration of abilities
(iii) Violation of secularism
Q43. Rajeev, the owner of Pathways Constructions decided a start a campaign to create awareness among people for developing clean surroundings in their area. He formed a team of 10 members to list the different ways of cleaning the surroundings. One suggested taking the help of residents, another suggested that they may involve school-going children in their venture. One more suggestion was to take the help of unemployed youth. On the evaluation of different ways, it was decided to take the help of residents. To achieve the desired goal various activities were identified.
(a) Purchase of necessary items like dustbins, garbage bags, brooms, etc.
(b) Collection of garbage
(c) Disposal of garbage etc.
After the identification of different activities, the work was allocated to different members.
(1) Identify the concepts of management involved in the above situation and quote the lines that help in their identification.
(2) Also identify the values which the company wants to communicate to the society.
Ans. (i) Concepts involved – Planning and Organizing
Lines for planning:
‘One suggested …………. Unemployed youth’
‘On evaluation ………. residents’
‘Campaign to create awareness ………. Surroundings’
Lines for organizing:
‘To achieve ………. Disposal of garbage etc.’
‘After identification of different activities ………. different members.’
(iii) Values
(a) Respect for the environment (b) Teamwork
(c) Fulfilling social responsibility (d) promoting cooperation
Q44. Gurpreet Ltd. Has been awarded recently with the ‘Best Employer of the Year Award.’ The company has believed in the ideas and suggestions of its employees. There is a systematic dispersal of decision-making at all levels. There is no delay in the delivery of orders to customers due to prompt decisions taken by employees.
(a) identify and state the concept of management followed by the company.
(b) Write any two values responsible for the success of the organization.
Ans. (a) Decentralization
It refers to the systematic delegation of authority through all the levels of management and in all the departments except that which can be exercised only at central points.
(b) values
(i) Confidence/ faith in the abilities of the subordinates
(ii) Initiative by subordinates
(iii) Respect toward other’s opinion
(iv) Acceptance
(v) Sharing of decision-making power
Q45. Mr. Deepak Wadhwa a school principal sent out an office order stating that each floor will have a staffroom exclusively for teachers teaching on that floor. No teacher will be allowed to sit in another staffroom. During school hours, teachers can only meet teachers of their department that too for official purposes. He wants each teacher to strictly work as per the rules and directions issued by him.
(a) Identify the type of organization highlighted in the above para.
(b) What might be the purpose of the school principal for issuing such an office order?
(c) Identify any two values violated in the above para.
Ans. (a) Formal organization
(b) He might be working against the creation of an informal organization
(c) Values
(i) Fulfilling social and emotional needs
(ii) Providing a secure working atmosphere
(iii) Frustration in employees
(iv) Opportunities for growth and development
Q46. ‘Krishna Foods Limited’ is a famous company making different food materials. Mr. Vikram is the Managing Director of the company. He is fully attached to the employees of his company. This is the main reason\ that before taking any decision he consults all the concerned employees. A suggestion box has also been provided in the company. It is opened once in fifteen days. The employees giving positive suggestions are suitably rewarded. Besides, all the employees of the company also enjoy complete freedom to communicate with any senior officer at any time. For all types of matters whether it is job related or personal.
(a) identify the type of organization highlighted in the above case and write its two merits.
(b) Identify any two values which have been highlighted in the above case.
Ans. (a) informal organization
Merits
(i) Faster spread of information
(ii) Fulfils social needs
(b) Values
(i) Faith in the ability of the subordinates
(ii) Respect towards employee’s suggestions.
Q47. ‘Save Ltd’. Is a pesticide manufacturing company. The company identifies the various types of activities to be done. For this, it divides the work into various departments. The company then gets involved in its business with complete dedication. After one year of a successful run, the company decides to transfer the decision-making. For this, a major policy decision is taken.
(a) Identify the function of management highlighted above.
(b) Identify the concept of management highlighted above.
(c) Explain the next two steps of the function identified.
(d) State any one importance of the concept identified above.
Ans. (a) Organizing
(b) Decentralization
(c) (i) Assignment of duties
(ii) Establishing reporting relationships
Q48. ‘Arora Drinks’ is an organization that helps quench the thirst of people sitting on the roadside and in religious places on Sundays. Identify the type of organization highlighted here and state its two advantages.
Ans. (a) informal organization
For advantage
Q49.Identify the type of organization structure highlighted in the following cases:
(a) Synchronization of efforts is easy in Mehra Fans Ltd. All the related functions related to a particular product are integrated within one department.
(b) Sunaina is a dynamic Chief Executive officer. In her company, she allows for autonomy and the opportunity to perform multiple functions. This has led to managerial development in her employees.
(c) Lakshay is an owner of a reputed manufacturing company. However, in his company, it is difficult to fix responsibility on a particular department.
(d) Vivek runs a company in Chennai. The company is known for its product specialization and has a lot of reputation in the market.
(e) Sharma Ltd. Is a city-based flourishing company. Recently it has won the award for being the most economical company as its functions are not duplicated it.
Ans. (a) Divisional structure (b) Divisional Structure
(c) Functional Structure (D) Divisional Structure
(e) Functional Structure
Q50. ‘Super Touch’ is a progressive company which has achieved new records in the field of electronic products. Recently the company decided to go for a major shift in policy decisions by handing over the decision-making authority to the lower level of employees. For this, the company went for thorough planning. Within four months the positive results of this major policy decision were recognizable. The employees felt a lot of development in their skills to take the first step to managing things on their own. Some major newspapers also covered this news. The production of the company increased. The company’s top management could now focus on new areas of innovation as the employees could be banked upon.
One day it so happened that a company’s manufacturing branch in the north could not fulfill even half of its production target. He was called in the office. When he was questioned it was found that his right to command the workers was inadequate and it should have been more to create results. The management decided to listen to him and he was given more power. When he went to the shop floor, he told the workers that the standard of behavior of the manufacturing unit should come from the official rules and procedures.
(a) identify and state the concept of management highlighted in the first para by quoting the lines.
(b) Identify the two importance of the above-identified concept highlighted in the above case by quoting the lines.
(c) Identify the two concepts of management highlighted in the second paragraph by quoting the lines.
(d) Identify the characteristic of the informal organization that has been opposed by the operations manager in the above case.
Ans. (a) Decentralization
‘Recently……… level of employees.’
(b) (i) Develop initiative among subordinates.
‘The employees ……. things on their own.’
(ii) develops managerial talent for the future.
‘The employees ………. Things on their own.’
(c) (i) Accountability
‘…….. the operations…. Targets.’
(ii) Authority
‘When he was …. inadequate.’
(d) The standard of behavior evolves from group norms rather than officially laid down rules and regulations.
Q51. ‘Alag Creations’ is a leading mobile manufacturing company. It has with the help of proper delegation enabled the existence of a proper workforce to take up leading positions in several challenging projects. The company has been in the news for good reasons related to innovation. Due to proper delegation, they have been able to properly define the relationships between superiors and subordinates at various levels leading to the creation of a strong management structure. Due to proper delegation, there is no overlapping of duties and duplication of efforts as there is clarity of the working relationship.
The company is acting as a role model for other players in the industry. The productivity of the company has improved as it is very well organized. Specific jobs are done by specific employees resulting in the increase of efficiencies at per person level. The company is now thinking of going global and has recently opened a branch in London. However, the conditions there are going to be different. It is expected that keeping in mind the strong organization of the company it will be able to modify its superiority there also.
Recently a meeting is held by the top management. It is decided that the company will go for a major shift in policy decisions and involve the supervisory level of management in decision-making as the size of the company is growing so it will require more participation from the employees up to the supervisory level.
(a) identify the three important of delegation highlighted above by quoting the lines.
(b) Identify the two importance of organizing highlighted above by quoting the lines.
(c) Identify and state the concept of management highlighted in the last part of the above case.
Ans. (a) (i) facilities of growth
‘it was ….. challenging projects.’
(ii) Basis of management hierarchy.
‘Due to proper ….. strong management structure.’
(iii) Better coordinates
‘Due to proper …… working relationship.’
(b) (i) Benefits of specialization
‘Specific jobs…. Per person level.
(ii) Adaption to change
‘it is expected ……. There also.’
(c) decentralization
Q52. Gurpreet, Shenoy, and Lakshay are good friends. They are thinking of manufacturing papers. They mutually decided that this manufacturing unit would be set up in a rural area of Orissa where people have very few job opportunities and labor is available at very low rates. They also decided not to sell goods on credit.
(a) One of the functions of management is highlighted in the given question. Name it by quoting the line from the question.
(b) Name the type of plan highlighted in the given question by quoting the line from the question.
(c) Which type of organizational structure would you recommend for this manufacturing unit? State any two reasons.
Ans. (a) Planning- ‘They are thinking of manufacturing papers.’
(b) Policy – ‘They also decided not to sell goods and credit.’
© Functional structure
Explain its any two advantages
Q53.Prateek, a supervisor at Peters Ltd. Is given a target of producing 150 shirts per day. Due to his habit of doing things differently, an idea struck him that would not only reduce the per unit cost and increase the production per day but also help in providing job opportunities to physically challenged people. Prateek also decided that after providing job opportunities he would also transfer authority from a superior to subordinates as the superior cannot perform all the functions on his own. However, Subhash, the production Manager, did not give any importance to Prateek’s creativity and hence ordered Prateek to complete the task according to the methods and techniques decided earlier.
(a) By ordering Prateek to complete the task according to the methods and techniques decided earlier, Subhash gave rise to one of the limitations of the management function, identify the management function and the limitation.
(b) Name the concept that is being followed by Prateek by transferring authority from superior to subordinates.
Ans. (a) management function: Planning. The limitation of the planning function of management described in the above para is planning reduced creativity
(b) Delegation.
Q54. To compete with its competitors, Gandhi Ltd. Made its annual plan on the assumption that the sales of its products will rise in the near future. For this Gandhi Ltd. Followed four steps:
(i) identification and Division of work (ii) Departmentalization
(iii) Assignment of duties (iv) Establishing Reporting Relationship
Gandhi Ltd. Manufactures 1,000/- pens in a week with the help of an existing machine. However, due to changes in technology a new machine with low cost and more production was launched in the market and the competitors captured the market. Due to this Gandhi Ltd. Could not achieve the objectives.
(a) identify and explain the limitations of Gandhi Ltd. Discussed in the above para which is related to one of the functions of management.
(b) identify and give the meaning of the management function whose process is being followed by Gandhi Ltd.
Ans. (a) Planning may not work in a dynamic environment.
(b) Organizing
Q55.One of the steps in the process of organizing explains that work is concerned with allocating the work to the employees according to their experience, skills, and competencies. For this, plans need to be made regarding decision-making. Application of mind which involves foresight and vision. Intelligent imagination and sound judgment are required as planning is thinking rather than doing the function of management.
(a) identify the steps in the process of organizing referred to above.
(b) Name the last step in the process of organizing.
(c) Identify and explain the characteristics of planning highlighted above.
Ans. (a) Assignment of duties.
(b) Establishing reporting relationships.
(c) Planning is a mental exercise.
Q57. At Vivaan Ltd., all bills for raw materials are processed by the General Manager himself. He feels quite overburdened. He formulated a plan and decided to delegate his authority to Deputy General Manager. But after some time, the Deputy General Manager also feels overburdened and with prior approval of the General Manager, disperses this authority to various levels throughout the organization. Now, all bills for raw materials are processed through the respective department’s supervisors. This involved huge costs in the formulation of the above-said plan.
(a) Name and explain the type of concept that is highlighted in the above case (i) and (ii) after delegation of authority.
(b) name and explain the limitation of planning being referred to above.
Ans. (a) (i) Before delegation of authority: Centralization
(ii) After delegation of authority: Decentralization
(b) Planning involves huge costs.
Q58. Garima is the General Manager of Bright Ltd. Garima is facing many problems regarding some policies on sales. The company has an aim to increase sales by 25% and return on investments by 15% instead of talking to the sales Departments she directly consulted her boss, Heena, about the problem. She talked to her freely and did not follow strict rules and regulations relating to formal lines of communication.
(a) Identify the type of organization followed by Garima.
(b) Give any one advantages and limitation of the type of organization identified in (a) above
(c) Identify and explain the plan being referred to above.
Ans. (a) informal organization Limitation: Spreads rumors
(c) Objective
(b) advantage: Faster, spread of information