Organising

Topics in this chapter

• Organising Concepts and Process
• Organisational Structure and Design
• Functional and Divisional Structures
• Formal and Informal Organisation
• Delegation and Accountability
• Decentralisation and Span of Management

Cheat sheet

Practice questions

1. Question 1Q-7A8510

   Which of the following steps in the organising process involves identifying and grouping the activities into manageable departments and units?

   1. A.Identification and division of work
   2. B.Departmentalisation
   3. C.Assignment of duties
   4. D.Establishing reporting relationships
   See the answer and solution
2. Question 2Q-E9AF34

   ABC Ltd. has grown significantly and decided to divide its major activities into Production, Purchase, Marketing, Sales, and Human Resources. Which type of organisational structure is the company adopting?

   1. A.Divisional structure
   2. B.Functional structure
   3. C.Informal structure
   4. D.Network structure
   See the answer and solution
3. Question 3Q-7A09E9

   A garment manufacturing company has two main product lines: Men's wear and Women's wear. Each product division has its own separate manufacturing, marketing, and finance departments. Which organisational structure is being used here?

   1. A.Functional structure
   2. B.Divisional structure
   3. C.Informal organisation
   4. D.Delegation-free structure
   See the answer and solution
4. Question 4Q-A554E8

   Which of the following best defines 'Delegation' in the context of organising?

   1. A.Transfer of total responsibility and ultimate accountability by a manager.
   2. B.Downward transfer of authority from a superior to a subordinate.
   3. C.Creation of an informal network of social relationships.
   4. D.Centralisation of all decision-making power at the top level.
   See the answer and solution
5. Question 5Q-926BDE

   Which of the following statements is true regarding accountability in delegation?

   1. A.Accountability can be delegated completely to a subordinate.
   2. B.Accountability flows upward and can be passed on to others.
   3. C.Accountability cannot be delegated; it flows upward and remains with the superior.
   4. D.Accountability is synonymous with authority and flows downward.
   See the answer and solution