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Chapter – 5 Organising (4+ 3+3 or 6 or 6 = 10 marks)

Considerations (any 3)

The following considerations should be kept in mind while building an organisation structure

Job design:

• Manager has to first design the jobs
• Then specify which task is to be included in each job
• Then decide which person will do which job

Departmentation:

Once the jobs are defined they must be grouped together to form a department as coordination becomes easier if similar jobs are under one department and one manager.

Span of Control:

After the departments are formed, how many people and jobs the manager will manage is the next decision. The manager is responsible for coordinating a particular number of jobs, which is called the span of control.

Delegation of Authority:

As jobs have been assigned, some degree of authority is required to get the job completed.

Explain how organising helps in “Specialization” and “Co-ordination”

Or

Describe IMPORTANCE OR OBJECTIVES of organising as a function of Mgt? 6 marks

Organising function is important because it leads to: (SCARS)

Specialisation:

• Activities should be grouped based on their similarity and convenience.
• This leads to efficiency, specialisation and speedy performance of task.

Clarifies authority and responsibility:

If each manager is aware of his respective powers and privileges, his area of activity, whom he can order and for which task, it helps to minimize conflicts and confusion.

Avoids duplication of work

Organising helps to avoid duplication of work and overlapping of responsibilities. This is because specific jobs are assigned to individuals and work groups.

Role clarity:

• The organising process clarifies what role a person doing a job is supposed to perform.
• It is quite often spelt out in a written document called job description.
• This helps to
• Avoid duplication of work
• Finding right person for the right job.

Source of support and security:

Organising is a source of support, security and satisfaction to managers and employees in performing the task assigned to them. Each member enjoys a definite status in the firm.

FUNCTIONAL AND DIVISIONAL STRUCTURE: (Important sub chapter)

Define functional organisation? – 1 mark (part of the question)

Grouping together the entire work into major functional departments and entrusting these departments to functional specialists is known as functional structure of the organisation.

In an electrical manufacturing company, there are four main activities – Production, Marketing, Finance and Personnel. The General Manager is planning to structure the organisation. Which type of organisation structure should be adopt and why? Give two reasons.

This company should adopt the functional structure because:

• Each major function is organised as a separate department viz. marketing, production, finance, personnel, etc.
• This promotes division of work which leads to specialisation
• Ensures effective utilisation of workforce
• Supervision and coordination becomes easy since each individual manager is specialised in his job.

State any 3 advantages of functional structure of organizing - 3 marks Marking Scheme

• Promotes division of work which leads to specialisation
• Ensures effective utilisation of workforce
• Supervision and coordination becomes easy since each individual manager is specialised in his job.

State any 3 limitations of functional structure of organising – 3 marks

• As each function is separate and each departmental head is concerned with the performance of his department, conflicts may arise and the overall objectives of the organisation suffer.
• In large functional organisations, taking quick decisions & coordination becomes difficult
• It becomes difficult to hold a particular department accountable if any problem arises.

For example, if a product fails the production, sales and research departments may point accusing fingers at each other.

XYZ Limited is manufacturing chemicals and textiles. What type of organization structure would suit the requirement of such an organisation? And why?

Divisional organisational structure would suit the requirements of XYZ Limited.

• In divisional organisational structure, activities and personnel are grouped on the basis of different products manufactured by the firm.
• This allows each division to specialise in its areas of operation
• Decision can be taken quickly and effectively
• Each division can concentrate on each product line. This will result in efficiency and economy in its operation