Target Exam

CUET

Subject

Business Studies

Chapter

Organising

Question:

Read the following passage and answer the question.

Over the last couple of years, the operation of Zosh limited increased many fold due to sudden boom in the market. It's sales manager. Mr. Rajesh was over burdened and it looks almost impractical for him to handle all the sales related activities and decisions.

He discussed the problem with the top management and selective dispersal of authority to some other people was decided, as many people, who were employed with the company were competent, capable and resourceful. They could assume responsibility for the effective implementation of the decisions. Now Mr. Rajesh would be having more time which he could devote to important policy decisions rather than occupying his time with both policy as well as operational decisions.

Which of the following is defined as the framework within which managerial and operational tasks are performed? 

Options:

Formal organisation

Delegation

Organisational structure

Span of management

Correct Answer:

Organisational structure

Explanation:

The correct answer is option 3- Organisational structure.

The organisation structure can be defined as the framework within which managerial and operating tasks are performed. It specifies the relationships between people, work and resources. It allows correlation and coordination among human, physical and financial resources and this enables a business enterprise to accomplish desired goals. The organisation structure of a firm is shown in an organisation chart. The span of management, to a large extent gives shape to the organisational structure. Span of management refers to the number of subordinates that can be effectively managed by a superior. This determines the levels of management in the structure. A proper organisation structure is essential to ensure a smooth flow of communication and better control over the operations of a business enterprise.