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MBA Ist Semester Organizing And Staffing Long Questions Answers Notes

MBA Ist Semester Organizing And Staffing Long Questions Answers Notes Study Material 3 Mock Papers For Self-assessment Unit-wise Notes Sample Papers Solved case studies for practice.

MBA Ist Semester Organizing And Staffing Long Questions Answers Notes
MBA Ist Semester Organizing And Staffing Long Questions Answers Notes

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Q.1. Explain the significance of a sound organization structure.(2009-10)

Or What is the importance of organization in business management?

Ans. Importance of Organization in Business Management: Organization is needed for the foundation of management. Importance of organization in business management can be summarised in the following heads:

 1. Increase in Production and Productivity: Efficient organisation helps in establishing a harmonious relationship between labour and capital. It arranges for the applicable solution of labour problems. It provides the best working conditions to the workers.

2. Encouragement to Specialisation: Sound organisation divides the activities of an enterprise into many sub-activities. An individual worker is assigned only a particular sub-activity. This increases the productivity of workers. It also improves the quality of production.

3. Training Facilities: Efficient organization establishes different departments in an enterprise. All the efforts are made to provide the best facilities for training of employees so that they may contribute their efforts in a better way towards the achievement of pre-determined objectives of the enterprise.

4. Increase in Management and Administrative Efficiency: It becomes a necessity for the accomplishment of the pre-determined objective of an enterprise that its organization must be sound and proper. An ancient organization increases the managerial and administrative efficiency of the enterprise. It assigns the jobs to all the persons according to their abilities and tastes. It also helps in the maximum exploitation of available resources of production.

5. To Provide the we mne Opportunity of Growth: Sound organisation helps in obtaining the maximum production at minimum cost which

nimum cost which encourages the industrial growth and development. In addition to this, the enterprises find themselves able to face cut throat competition only with the help of sound organisation.

6. Encouragement to contribute Activities: Experts are appointed in all the departments. These selves always busy in drafting the policies, developing the procedures and making the rules for different activities of an enterprise. Sound organisation also encourages research and development.

7. Coordinati amation: Organisation also establishes good coordination at all the levels of management. It attempts to solve the problems at their origin. It develops the atmosphere on Work.

8. Optimum Use of Resources: A sound organisation makes the optimum utilisation of all the resources of production of an enterprise possible. It avoids unnecessary activities and overlapping of efforts. It checks all the wastages and emphasizes upon the economies.

9. Increase in Morale: Sound organization emphasizes upon the morale of all employees. The best efforts are made to keep the morale of all the employees high so that they can contribute their wholehearted cooperation towards the accomplishment of goals of the enterprise.

Q.2. What are the various principles of organisation?

Ans. Principles of Organisation: The success of a business and industrial enterprise depends upon proper coordination between various parts of the enterprise. Such coordination can be established and maintained only through efficient organization. To make an organization efficient, sound and successful there are some principles of organization. These are as follows:

1. Principle of Definition: The rights and duties of all employees must be clearly defined and these may be in writing.

2. Principle of Certainty: What is to be done in future must be decided well in advance. All the employees must be clearly convinced of what they have to do in future, to whom they are responsible and by whom they will be governed.

3. Principle of the Span of Control: Span of control of officers and executives must be limited because large span of control results in loose control. No executive should be required to supervise more subordinates than he can effectively supervise. In the words of L.F. Urwick, ‘A person can control the activities of five or six subordinates at one time at the most.’

4. Principle of Unity of Command: Principle of unity of command requires that one employee must get the orders from one officer only. The result of this requirement is to avoid the problem of conflict in orders and instructions. It will be very difficult for employees to follow order of two or three officers at one time.

5. Principle of Effectiveness of Organisation: An organisation can be regarded as effective only when there is a healthy atmosphere of work, there is mutual cooperation among employees and all the employees obey the instructions of their immediate boss. If, it is not so, the organisation cannot be said o be effective.

6. Principle of Unity of Objective: According to this principle, there must be uniformity and similarity in the objects of enterprise and organisation. In other words, every part of the organizational system must be in accordance with the object of enterprise. Every member of the organisation should e well versed with the objects of enterprise.

7. Principle of Authority: The authority and rights of all the employees of a good organisas should be clearly defined and properly communicated to the concerned employees. This principle that no employees should go beyond his authority

8. Principle of Responsibility: Responsibility sentences must be clearly determined and des in an organisation. The employees must know the extent to which they are responsible for the done by them so that it may be easy to determine the actual responsibility for a variation.

9. Principle of Assignment of Exception: A sound organisation must be managed according the principle of management by exception according to which the top management of an enteros should not be involved in day-to-day operation. It must be concerned only with the decision with top management which are not of the routine nature and which cannot be solved at any other level the employees must be delegated full power to do their work

0.3. Give the various forms of organisation of business and industrial enterprise. Discuss any one of them

Ans. Forms of Organizational Structure: Organisation is that part of management which explains the functions and relations of all the employees of an organisation. An enterprise without an effective organisation is like a dead person. Various changes take place in the organisation also along with the changes in the size of enterprise. Form of organisation is determined keeping in view the nature and size of business enterprise. Following are the various forms of organisation of business and industrial enterprise in common use:

1. Line organisation.

2. Functional organisation.

3. Committee organisation.

4. Line and staff organisation.

5. Inter unit administrative organisation.

Line Organisation

This is the oldest form of organization. It refers to a direct chain of command from top to bottom This chain of command defines the line of communication. In this form of organization, all the lines are with the top officers. Junior officers get orders from their seniors. In other words, the orders and directions are in the form of a line in a line organization.

“Line organisation is the chain of command that extends from the board of directors through the various delegation and re-delegations of authority and responsibility to the point where the primary activities of the company are performed

Thus, in line organisation, authority and responsibility flow vertical in an unbroken straight line -Louis A. Allen from one level to another. Every superior has complete command over his subordinates and every subordinate is directly answerable to only one superior just above him.

Characteristics of Organisation

The above discussion highlights on the following characteristics of line organisation:

1. There is a linear relation between orders. Orders flow from top to bottom.

2. Every senior officer has complete command over his subordinates.

3. Every subordinate is directly acceptable to his immediate officer.

4. Number of subordinates under the control of every officer is certain and limited.

5. Communication between all the employees of organisation is serially arranged.

Types of Line Organisation

Line organisation is of following two types:

  1. Pure Line Organisation: In this type of organisation, activities at a particular level are simila Every employee performs similar tasks and every group of activities consists of a separate unit Classification of activities is made only from the point of view of management and supervision. Allt employees from top to bottom perform similar type of activities. This form of organisation is very rare because it is very difficult to find an industry in which all the employees perform same activities.

2. Departmental Line Organisation: In this form of line organisation, the enterprise is divided into different departments. Every department works under a superintendent and all the superintendents’ work under the supervision and control of general manager. Control and supervision of these superintendents is linear.

Merits of Line Organisation

Following are the merits of line organisation:

1. Responsibility: As the rights, duties and responsibilities of all the employees are well defined, every person knows his responsibilities. Therefore, in this form of organisation responsibility can be determined easily.

2. Flexiny: As each senior officer has full authority and responsibility for his job, he is free to make necessary decisions for the performance of his duties. It results in quick decisions and quick implementation of decisions into action.

3. Effectuation: As all the activities of a department are under the control of one officer and directly responsible for the performance to his department. Effective coordination is established through this form of organisation.

4. Proper Discipline: Unity of command, effective control and coordination develops the feeling of discipline among all the employees and officers of the enterprise.

5. Economy: Line organisation is economical also because overhead expenses are required for different experts.

6. Simplicity: Line organisation is the oldest and simplest form of organisation. Rights, duties and responsibilities of all the employees of an organization are clearly defined and properly communicated.

7. Quick Decisions: As the authorities are centralized and well defined, the senior executive can take quick decisions as no other person is to be consulted by them.

8. Easy to Control: This form of organisation makes the process of control easier and more effective. All the subordinates clearly know to whom they are responsible.

Demerits of Line Organisation

Line organisation suffers from the following demerits:

1. Lack of Initiative at Lower Level: Subordinates have no decision making power in this form of organisation therefore there is a lack of initiative at lower levels. It lowers their motivation and morale.

2. Lack of Specialisation: In this form of organisation, there is complete lack of specialisation. All the activities of one department are under the control of one executive and no person can be supposed to be expert of all the activities to be performed in his department. Therefore, this form of organisation results in the lack of organisation.

3. Overburden upon Top Executives: In line organisation the burden of one department is upon the single executive. Therefore, in this form of organisation, senior executives are over burdened with administrative work.

4. Over Dependence on Top Executives: In the form of organisation, the success of an enterprise depends upon the efficiency of its top executives. If any of its top executive is not much efficient his department will be lacking success.

5. Autocratic Leadership: As one department is under the complete control of one executive there is a possibility of concentration of all decision-making power.

Q.4. Write a detailed note on functional organisation.

Ans. Functional Organisation: This form of organisation is based on the principle of specialization. Under this form of organisation, the work is divided in such a manner that all the officers below the rank of assistant superintendents do minimum possible work of decision-making and one particular officer must be responsible for a particular work so that he may become expert in his work. Under this form of management one particular employee is related to one officer only whok gives the necessary others and direction to him. In this form, the experts are in direct touch with the workers.

In this form of organisation, the authority flows from top to bottom. Under this form, a worker gets orders and instructions from different bosses. Every boss gives the orders to him related to his specialized functions. Thus, in this form, authority becomes functional and specialized. The workers are responsible for all the bosses from whom he gets the orders and instructions for his jobs. These bosses are responsible for their specialized jobs. They are responsible for their boss under whom they are working.

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