Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Organising

Question:

Match the following.

Column – I Column – II
A) No definite structure I) Centralisation
B) Scalar chain II) Formal organisation
C) Transfer of authority III) Informal organisation
D) Concentration of decision making at top level IV) Delegation

 

Options:

A- III, B-II, C-IV, D-I

A- III, B-I, C-IV, D-II

A- II, B-III, C-IV, D-I

A- III, B-II, C-I, D-IV

Correct Answer:

A- III, B-II, C-IV, D-I

Explanation:

The correct answer is option 1- A- III, B-II, C-IV, D-I.

* No definite structure- Informal organisation. Interaction among people at work gives rise to a ‘network of social relationships among employees’ called the informal organisation. Informal organisation has no set of behaviour as there is no rigid rules and regulations. An informal organisation originates from within the formal organisation as a result of personal interaction among employees. It emerges spontaneously and is not deliberately created by the management. It has no definite structure or form because it is a complex network of social relationships among members.

* Scalar chain- Formal organisation. Formal organisation refers to the organisation structure which is designed by the management to accomplish a particular task.  It is deliberately designed by the top management to facilitate the smooth functioning of the organisation. Communication takes place through the scalar chain.

* Transfer of authority- Delegation. Delegation refers to the downward transfer of authority from a superior to a subordinate. It is a pre-requisite to the efficient functioning of an organisation because it enables a manager to use his time on high priority activities. It also satisfies the subordinate’s need for recognition and provides them with opportunities to develop and exercise initiative. Delegation helps a manager to extend his area of operations as without it, his activities would be restricted to only what he himself can do.

* Concentration of decision making at top level- Centralisation. An organisation is centralised when decision-making authority is retained by higher management levels. Complete centralisation would imply concentration of all decision making functions at the apex of the management hierarchy. Such a scenario would obviate the need for a management hierarchy.