NCERT Solutions for Class 12 Business Studies Chapter 5 Organising

NCERT Solutions for Class 12 Business Studies Chapter 5 Organising

NCERT Solutions for Class 12 Business Studies Chapter 5 Organising is designed and prepared by the best teachers across India. All the important topics are covered in the exercises and each answer comes with a detailed explanation to help students understand concepts better. These NCERT solutions play a crucial role in your preparation for all exams conducted by the CBSE, including the JEE.

NCERT TEXTBOOK QUESTIONS SOLVED

1. Define 'Organising'?

Ans. Organising is defined as a process that initiates implementation of plans by clarifying jobs, working relationships and effectively deploying resources for attainment of identified and desired results.

2. What are the steps in the process of organising?

Ans. Organising involves following steps that need to be taken in series
(i) Identification and Division of Work Organising process begins with identifying and division of total work into small units.
(ii) Departmentalisation After dividing the work, related and similar jobs are grouped together and put under one department.
(iii) Assignment of Duties After departmentalisation, the work is assigned according to the ability of individuals.
(iv) Establishing Reporting Relationship Assigning duties is not enough. Each individual should also know, who he has to take orders and to whom he is accountable. Thus, reporting relationship helps in co-ordination among various departments.

3. Discuss the elements of delegation.

Ans. The elements of delegation are as follows
(i) Authority It refers to the right of an individual to command his subordinates and to take action within the scope of his position. The concept of authority arises from the established scalar chain, which links the various job positions and levels of an organisation. It must be noted that authority is restricted by laws and the rules and regulations of the organisations. Authority flows downward.
(ii) Responsibility Responsibility is the obligation of a subordinate to properly perform the assigned duty. It arises from a superior-subordinate relationship because the subordinate is bound to perform the duty assigned to him by his superior. Responsibility flows upward.
(iii) Accountability Accountability implies being answerable for the final outcome. Once authority has been delegated and responsibility accepted, one cannot deny accountability. It cannot be delegated and flows upwards i.e., a subordinate will be accountable to a superior for satisfactory performance of work.

4. Question Prepare a report regarding organisation structure giving concrete reasons with regard to benefits the company will derive from the steps it should take.

Ans. In the given situation, organisation should shift from functional structure to divisional structure as the company wants to diversify; by adding a new product line. The reasons and benefits are
(i) The performance of each unit can be easily assessed.
(ii) New product lines can be easily added without disturbing the existing units.
(iii) Decision making is faster.
(iv) Divisional structure maintains short line of communication with customers and provide better services to them.

5. A company manufacturing sewing machines set up n 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 work force is also not motivated since they cannot vent their grievances except through formal channels, which involve red tape. Employee turnover is high. Its market share is also declining due to changed circumstances and business environment. Question 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?

Ans. The suggestions are
(i) 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.
(ii) The management should try to decentralise organisation structure.
(iii) The suggested area where the business can be diversified is textile machineries like embroidery units, sequencing units, buttoning units.

6. A company X limited manufacturing comsetics, which has enjoyed a pre-eminent position in business, has grown in size. Its business was very good till 1991. But after that, new liberalised environment has seen entry of many MNC's in the sector. With the result the market share of X limited has declined. The company had followed a very centralised business model with directors and divisional heads making even minor decisions. Before 1991, this business model had served the company very well as consumers has no choice. But now the company is under pressure to reform. Question What organisation structure changes should the company bring about in order to retain its market share? How will the changes suggested by you help the firm? Keep in mind that the sector in which the company is FMCG.

Ans. The company X Ltd is working in a centralised way, which is not giving enough time to the higher officials to think of better policies, strategies to handle the changes in the changing environment. The company should thus get decentralised so that the routine type of work, involving minor decisions can be looked after by the lower levels. This will give/save more time for the directors and divisional heads to plan strategies to fight with competition.

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