Organizing HOTs and value based questions and answers:

1. Grouping similar nature jobs into larger units called departments is the second step in the
process of one of the functions of management. Identify the function.

Organizing.

2. Name the function of management which coordinates the physical, financial and human
resources and establishes productive relations among them for achievement of specific goals.

Organizing.

3. Define Span of Management.

Span of management refers to the no. of subordinates that can effectively managed by a
superior.

4. How is `span of management related to organization structure?

The span of management to a large extent, gives shape to the organization structure. This
determines the levels of management in the organization structure.
5. Ansh Medicines International Pvt. Ltd. Is diversified company and has seven branches all over
the world. Each branch is concerned with the production and sales of only one type of
medicine. What type of organizational structure would you suggest for the company?
Divisional Structure.
6. Shreya Ltd. Engaged in the production of marble articles. The members of the organization have
friendly relationships among them. What type of organization is Shreya Ltd?
Informal organization.

7. Akash is an overburdened manager. Can he take help from his subordinates? How?
Yes. By delegation of authority.
8. The directors of Shiv Electronics, an organization manufacturing TV components, have asked
Shakti, their Marketing Manager to achieve a target sale of Rs. 5,00,000 per day. Shakti has
delegated the task to Manav, his Deputy Sales Manager working under him. Manav could not
achieve the targets. Is Shakti responsible for the failure of Manav? State the relevant principle
in support of your answer.
Yes. Shakti is responsible. The relevant principle is Principle of absolute accountability.
9. It arises from a superior subordinate relationship wherein the subor5dinate is bound to perform
the duty assigned to him by his superior. Identify it.
Responsibility.
10. A company has its registered office in Delhi, manufacturing unit at Gurgaon and marketing and
sales department at Faridabad. The company manufactures the consumer products. Which
type of organizational structure should it adopt to achieve its target? Give reasons.
The company should adopt Funcstional Structure to achieve its targets.
 Reasons: The company has separate departments like manufacturing unit (Gurgaon) marketing
and sales department (Faridabad) etc. That means, the sixe of the organization is large, it has
diversified activities and operations require a high degree of specialization. So it should adopt
functional structure.
By adopting functional structure, the company gets the following advantages.
a) Specialisation. B) Lower costs. C) Increased profit d) All functions gets due attention.
11. Tanushree runs a factory wherein she manufactures shoes. The business has been doing well
and she intends to expand by diversifying into leather bags as well as western formal wear,
thereby making her company a complete provider of corporate wear. This will enable her to
market her business unit as the one shop for working women. Which type of structure would
you recommend for the expanded organization and why?
I will recommend the Divisional structure for the expanded business
Reasons: Tanushree wants to diversify products by manufacturing leather bags and western
formal wear. That means, the organization will grow and will need to add more employees,
create more divisions and introduce new levels of management.
Advantages of Divisional Structure

12. A company manufacturing sewing machines set up in 1946 follows formal organization
structure. It is facing a lot of problems such as delay in decision making. As a result, it is not
able to adapt to the changing business environment. The work force is also not motivated,
there is problem of red tapism and employees turnover is very high.
a) Advise the company with regard to change it should bring about in its organization structure
to overcome the problems faced by it.
b) Give reasons in terms of benefits it will derive from the changes suggested by you.
c) In which sector can the company diversify keeping in mind the declining market for the
product the company is manufacturing?
A) The company should give due importance to Informal organizational structure along
with the formal structure. It enhances their job satisfaction. This will overcome the
problem of lack of motivation. Informal groups can also provide useful communication
channels, which may help to transmit useful information quickly.
B) Benefits of Informal organizational structure
C) Fills inadequacies of formal structure: It contributes towards fulfilment of organizational
objectives by compensating for inadequacies in the formal organization.
13. In an organization top level management has not distributed work among the subordinates
according to their abilities and skills but on the basis of caste and religions. Which values are
neglected here?
Democracy
Secularism
Broad mindedness
Non consideration of abilities
14. An electronic company manufacturing TV and Refrigerator wants to bring two new products
Washing Machines and ACs in the market. For each product separate division are to be set up.
In charge of washing machine division and ACs division will be female and disabled person
respectively. Which values have been considered here?
Women empowerment b) Promotion of equality c) Job opportunities to disadvantaged section
of the society d) making handicapped people independent.
15.In an organization formal organization is followed strictly where the employees have to work
as per the directions only. The employees are performing under pressure. In your view, what
changes are required in this company?
Fearful environment will reduce production and productivity
Increased feeling of insecurity
Pressure will create stress among employees
Delay in work.