Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Organising

Question:

Setting up the organisational structure during the process of organizing involves which of the following?

Options:

What is the specified business which the company should pursue

Designing the roles in an organisation

Setting up the authority and responsibility, relationship of the skilled people

Both 2 and 3

Correct Answer:

Both 2 and 3

Explanation:

The correct answer is option 4- both 2 and 3.

Option 1 is not part of organising but planning.

Organising can be defined as a process that initiates implementation of plans by clarifying jobs and working relationships and effectively deploying resources for attainment of identified and desired results (goals). Organising process has 4 steps. These steps are as follows-

(i) Identification and division of work- The first step in the process of organising involves identifying and dividing the work that has to be done in accordance with previously determined plans. The work is divided into manageable activities so that duplication can be avoided and the burden of work can be shared among the employees.

(ii) Departmentalisation: Once work has been divided into small and manageable activities then those activities which are similar in nature are grouped together. Such sets facilitate specialisation. This grouping process is called departmentalisation. Departments can be created using several criteria as a basis.

(iii) Assignment of duties: It is necessary to define the work of different job positions and accordingly allocate work to various employees. Once departments have been formed, each of them is placed under the charge of an individual. Jobs are then allocated to the members of each department in accordance to their skills and competencies. It is essential for effective performance that a proper match is made between the nature of a job and the ability of an individual. The work must be assigned to those who are best fitted to perform it well.

(iv) Establishing authority and reporting relationships: Merely allocating work is not enough. Each individual should also know who he has to take orders from and to whom he is accountable.