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Chapter: Principles of Management : Organizing

Important Questions and Answers: Principles of Management - Organizing

Principles of Management - Organizing - Important Questions and Answers: Principles of Management - Organizing

1. Define Organization.


An identified group of people contributing their efforts towards the attainment of goals is called an organization. Organization is the process of establishing relationships among the members of the enterprise.


2. What is the purpose of Organization?

ü Facilitates Administration

ü Increases the efficiency management

ü Stimulates creativity and innovation

ü Facilitates growth and diversification and

ü Facilitates co-ordination and communication.


3. What is organizing?


Organizing refers to the formal grouping of people and activities facilitate achievement of the firm’s objectives. Organizing may be defined as the process of

i) Identifying and classifying the required activities i.e. Job Design


ii)  Grouping the work to be performed i.e., Departmentation

iii) Defining and delegating responsibility and authority i.e. Delegation of authority

iv)Span of Control


4. What is Job design?

Job design is usually broad enough to accommodate people’s needs and desires. It may be especially appropriate to design jobs for exceptional persons in order to utilize their potential. People spend a great deal of time on the job and it is therefore important to design jobs so that individuals feel good about their work.Two important goals of job design are,


• To meet the organizational requirements such as higher productivity, operational


efficiency, quality of products/service etc.

• To satisfy the needs of the individual employees like interests, challenge, achievement etc.


5. What is Organisation Structure?


In organisation structure simply by means the systematic arrangement of people working for the organisation. The organisation is concerned with establishment of positions and relationship between positions. The organisation structure has two dimensions.


1. Horizontal        2. Vertical



6. What is an Organizational chart?

According to George Terry, “Organizational chart is a diagrammatical form, which shows the important aspects of an organization including the major functions and their respective relationships, the channels of supervision, and the relative authority of each employee who is in charge of each respective function”. It is a representation of the framework or structure of an organization. It may be a vertical or top-down chart, horizontal or left to right chart and circle or concentric chart.


7. Uses of Organisation Chart

1. The organisation chart pinpoints the weakness of an organisation. This will helps to overcome the short coming of organisation.


2. It tells quickly who is responsible for particular function.


3. It is useful in showing nature of an organisation and changes if any in the existing staff and new comers.


8. Distinguish between authority and power


Power is the ability of individuals or groups to induce r influence the beliefs or actions of other persons or groups.Authority in organisation is the right in a position to exercise discretion in making decisions and affecting others.


9. What are the different bases of power?

1. Legitimate Power


2. Referent Power


3. Reward Power


4. Coercive Power


10.            Functional Authority


It is the right which is delegated to an individual or a department to control specified processes practices, policies or other matters relating to activities, undertaken by persons in other departments.


11. Formal Organization


The structure of jobs and positions with clearly defined functions and relationship as prescribed by the top management and bound by rules, systems and procedures.


12. Informal Organization

A network of interpersonal relationships that arise when people associate with each




13. Departmentation


The organizational process of determining how activities are to be grouped is called departmentation. Departmentation is a means of dividing the large and complex organization into smaller, flexible administrative units.


14. Empowerment


Empowerment means that employees, managers or teams at all levels in the organization are given the power to make decision without asking their superiors for permission.




15. Decentralization

The tendency to disperse decision making authority in an organized structure. \


16. What do you mean by a strategy?


Strategy is defined as the determination of long-term objectives of an organisation. Making the best choices for the future and allocating the resources necessary to accomplish the objectives.


17. What is decision making?


Decision making is defined as the selection of a course of action among alternative courses of action. Decision making should be rational. Decision making involves a choice among alternatives.


18.            What is the purpose of planning?

ü To determine the direction of an organisation

ü To provide a basis for team work

ü To minimise wastages in the future

ü To facilitate decision making


ü To improve morale of the employees.

19.            State the importance of HRM?


ü To achieve competitive advantage over other organisation.


ü To improve the efficiency of the organisation.


ü For the fuller utilization of available resources.


ü Cost effective administration.


20.            State the importance of staffing:-


ü It helps to make use of the Organisational resources.


ü It provides effective and efficient personals to the organisation.


Helps to discover talented and competent persons. Planning and executing all those activities are associated with recruitment, selection, training, and Performance appraisal and career development in known as human resource management.


21. What is span of control?


Span of control tells the ratio between superiors and subordinates. Usually organizations are having two different types of spans. They are


ü Wide Span

ü Narrow span



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