Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Organising

Question:

Match the following.

Column – I Column – II
A) Managers are leaders I) Formal organisation
B) Arises from delegated authority II) Informal organisation
C) Arises from responsibility III) Accountability
D) Arises out of personal qualities IV) Responsibility

 

Options:

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

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

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

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

Correct Answer:

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

Explanation:

The correct answer is option 4- A- I, B-IV, C-III, D-II.

* Managers are leaders- Formal organisation. Formal organisation refers to the organisation structure which is designed by the management to accomplish a particular task. It specifies clearly the boundaries of authority and responsibility and there is a systematic coordination among the various activities to achieve organisational goals.  It is deliberately designed by the top management to facilitate the smooth functioning of the organisation. In formal organisation managers are leaders whereas in informal organisation Leaders may or may not be managers. They are chosen by the group.

* Arises from delegated authority- Responsibility. Responsibility is the obligation of a subordinate to properly perform the assigned duty. It arises from a superior– subordinate relationship because the subordinate is bound to perform the duty assigned to him by his superior. Thus, responsibility flows upwards, i.e., a subordinate will always be responsible to his superior.

* Arises from responsibility- Accountability. Accountability implies being answerable for the final outcome. Once authority has been delegated and responsibility accepted, one cannot deny accountability. It cannot be delegated and flows upwards, i.e., a subordinate will be accountable to a superior for satisfactory performance of work. It indicates that the manager has to ensure the proper discharge of duties by his subordinates. It is generally enforced through regular feedback on the extent of work accomplished.

* Arises out of personal qualities- 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.