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CBSE Guess > eBooks > Class XII > Business Studies by Dorothy Mathias

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

State any 3 advantages of DIVISIONAL STRUCTURE of organising – 3 marks

• Each division can specialise in its areas of operation.
• Decision can be taken quickly and effectively.
• Can concentrate on each product line, which leads to efficiency and economy in its operation.

State any 3 disadvantages of divisional structure of organising – 3 marks

• As each division has its own production, marketing and finance arrangements, it involves heavy expenditure on human and physical resources.
• Managers in each department focus only on their own product without thinking of the rest of the organisation.
• Full utilisation of equipments may not be there in different departments.
• It is not suitable for small and medium sized companies.

DELEGATION OF AUTHORITY: (Meaning, Importance & Elements) – Imp sub chapter

Define delegation of authority?

The manager cannot perform the entire work assigned to him alone. So while he himself does jobs that are unique to the position he holds, he shares routine work and authority with competent subordinates to operate within prescribed limits. The sharing of this routine authority and responsibility with the subordinates is delegation of authority.

Explain briefly the ELEMENTS/PROCESS OF DELEGATION OF AUTHORITY? Marking Scheme - 4 marks

Or

“Delegation of authority is a process involving authority, responsibility and accountability” Explain this statement in brief. – 4 marks Important

Delegation means entrusting responsibility and authority to another person and creating accountability. Thus the process of delegation of authority has the following three important elements:

Responsibility:

• Responsibility can be delegated. It is the first step in the delegation process.
• A manager assigns certain tasks to his subordinates because he alone cannot perform all those tasks.
• However he only assigns the task to his subordinate but not the responsibilities for their performance.
• The responsibility for proper performance of such task continues to rest with him.

Authority:

• Besides assignment of duties, the subordinates are also granted authority to perform those duties properly.
• Authority refers to the powers and rights to use financial, physical and human resources as well as the right to decide to act or not to act.
• Authority is needed perform a given responsibility because without authority it may be very difficult and even impossible to carry out the given task.

Accountability:

The process of delegation is complete when the subordinate to whom the duties are assigned and authority is delegated is made accountable for properly performing his duties and for properly exercising the authority delegated to him.