Chapter organising: Organising Case Study Questions | business studies Class 12 CBSE

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Chapter organising: Organising Case Study Questions | business studies Class 12 CBSE | ByteNotes.in

Case Study

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Case Set 1

Case Analysis

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Ramesh is the owner of a mid-sized garment manufacturing company in Tirupur. The company recently received a bulk international order. To handle the increased workload, Ramesh divided the work into separate departments: cutting, stitching, finishing, and packaging. He placed a supervisor over each department and defined clear reporting lines. Each supervisor was told who to report to and who reports to them. Ramesh also ensured that each worker was assigned tasks based on their skills. Despite the rush order, production ran smoothly because every worker knew their job and their place in the hierarchy. Ramesh's approach exemplifies the organising process that transforms plans into effective action.

Question 1: Identify the step of the organising process that Ramesh followed when he divided work into cutting, stitching, finishing, and packaging.

Ramesh followed the step of 'Identification and Division of Work'
This step involves dividing the total work into manageable activities to avoid duplication and share the burden of work among employees

Question 2: Which step of organising did Ramesh perform when he grouped similar activities into departments? Name the basis of grouping used here.

Ramesh performed the step of 'Departmentalisation'
The basis used here is functions (cutting, stitching, finishing, packaging) — this is functional departmentalisation

Question 3: Explain the importance of 'establishing reporting relationships' in Ramesh's organisation and how it contributes to effective administration.

Establishing reporting relationships creates a hierarchical structure so each employee knows who to take orders from and to whom they are accountable
It removes ambiguity in transfer of information and instructions by clarifying lines of communication
It helps in fixation of responsibility and specification of the extent of authority, enabling effective coordination across departments
It also provides clarity in working relationships and contributes to effective administration by avoiding confusion and duplication of effort

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Case Set 2

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TechNova Ltd. is a large IT company that started with software development but has now diversified into cloud computing, cybersecurity, and digital marketing. Initially it had a single structure with departments like HR, Finance, Marketing, and Production reporting to the MD. But as it grew, coordination became difficult and each product line required different expertise and faster decisions. The management decided to restructure by creating four autonomous divisions — one each for Software, Cloud, Cybersecurity, and Digital Marketing. Each division had its own HR, finance, and marketing teams. Each divisional head was made responsible for profits and losses of their division and was empowered to take decisions independently.

Question 1: What type of organisational structure did TechNova Ltd. adopt after restructuring? Give one reason why this structure was suitable for TechNova.

TechNova adopted a Divisional Structure after restructuring
It is suitable because the company has diversified into multiple product lines and a divisional structure allows each product line to function as a self-contained unit with product specialisation

Question 2: State two advantages that TechNova will gain from the newly adopted divisional structure.

Each divisional head is accountable for profits and losses, providing a proper basis for performance measurement and fixation of responsibility
It promotes flexibility and initiative as each division functions as an autonomous unit, leading to faster decision making

Question 3: Compare the earlier functional structure of TechNova with the new divisional structure on the basis of: (i) specialisation (ii) coordination (iii) managerial development.

Specialisation: The functional structure provides functional specialisation (e.g., all marketing experts in one department), whereas the divisional structure provides product specialisation where managers gain experience in all functions related to a particular product
Coordination: In the functional structure, coordination is difficult for a multi-product company as functions are spread across departments; in the divisional structure, coordination is easier because all functions related to a particular product are integrated in one division
Managerial development: In the functional structure, each functional manager reports only to the top management, limiting exposure; in the divisional structure, divisional heads get autonomy and chance to perform multiple functions, facilitating better managerial development

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Case Set 3

Case Analysis

Passage

Priya is the HR manager at a textile firm. She noticed that apart from their formal roles, employees had formed several informal groups. One group of workers who commuted together had formed a strong bond and often discussed production issues informally before official meetings. Another group of senior employees met regularly for lunch and influenced newer recruits. Priya observed that information spread through these networks much faster than through official memos. However, she also noticed that some groups were spreading rumours about an upcoming restructuring that was causing anxiety. Priya decided to use these informal networks strategically rather than trying to suppress them.

Question 1: What is the informal organisation referred to in the passage? How does it originate?

Informal organisation refers to a network of social relationships among employees that arises from personal interaction at work
It originates spontaneously from within the formal organisation as a result of frequent personal contacts among employees, not as a result of any deliberate design by management

Question 2: Identify one advantage and one disadvantage of informal organisation illustrated in the passage.

Advantage: Information spread through informal networks much faster than official memos, showing the speed advantage of informal communication channels
Disadvantage: Some groups were spreading rumours about the restructuring, which is a disruptive force against the interest of the formal organisation

Question 3: Priya decided to use informal networks strategically. Justify this approach by explaining how informal organisation can support formal organisation.

Informal organisation provides faster spread of information and quick feedback which helps formal communication to be more effective
It fulfills the social needs of employees, enhancing job satisfaction and giving them a sense of belongingness, which improves morale and productivity
It compensates for inadequacies in the formal organisation — for example, employee reactions towards plans and policies can be tested through the informal network before official implementation
Management can use informal groups as useful communication channels and gather their support to improve organisational performance

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Case Set 4

Case Analysis

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Mr. Kapoor is the General Manager of a manufacturing plant. His team is responsible for producing 500 units per day. However, because of the expanding operations, Mr. Kapoor found himself overwhelmed with routine tasks like approving purchase orders, managing attendance, and reviewing minor production reports. He decided to assign these routine duties to his supervisors along with the necessary authority to act. He retained authority only for strategic decisions like hiring senior staff and entering new contracts. After this arrangement, Mr. Kapoor found he had more time to plan for expansion and the supervisors felt more motivated and capable.

Question 1: Identify the management concept Mr. Kapoor practised by assigning routine tasks to his supervisors.

Mr. Kapoor practised 'Delegation of Authority'
Delegation refers to the downward transfer of authority from a superior to a subordinate to perform tasks on behalf of the manager

Question 2: How did delegation benefit Mr. Kapoor and his supervisors? State one benefit for each.

Benefit for Mr. Kapoor (Manager): Delegation reduced his workload by freeing him from routine tasks, giving him more time to concentrate on important policy matters like planning for expansion — this reflects 'Effective Management'
Benefit for supervisors (Employees): Delegation gave supervisors opportunities to utilise their talent, improve their skills, gain experience, and develop themselves for higher positions — this reflects 'Employee Development' and also motivated them

Question 3: Explain the three elements of delegation with reference to the situation described in the passage.

Authority: Mr. Kapoor granted his supervisors the right to approve purchase orders and manage attendance — this is authority, the right to command subordinates and take decisions within the scope of a position
Responsibility: The supervisors accepted the obligation to properly perform these assigned duties — responsibility is the obligation of a subordinate to perform the assigned task and flows upward from subordinate to superior
Accountability: Even though supervisors were delegated authority, Mr. Kapoor remained answerable for the final outcome — accountability is being answerable for results, cannot be delegated, and flows upward from subordinate to superior

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Case Set 5

Case Analysis

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Surya Enterprises Ltd. is a large consumer goods company selling soaps, shampoos, and cosmetics. All decisions — from hiring staff to selecting suppliers — are made by the Board of Directors in Mumbai headquarters. Branch managers across India must seek approval from headquarters before taking even minor operational decisions. This has been causing significant delays. Branch managers are frustrated and customer complaints are not resolved quickly. A management consultant advised the company to push decision-making authority to the branch level so that those closest to customers can act faster and more effectively.

Question 1: What type of management system does Surya Enterprises currently follow? What problem has it created?

Surya Enterprises currently follows a Centralised management system where all decision-making authority lies with the top management at headquarters
The problem created is significant delays in decision-making, causing customer complaints to go unresolved and branch managers to be frustrated and demotivated

Question 2: What change has the consultant suggested? State one benefit this change will bring.

The consultant suggested adopting Decentralisation — delegating decision-making authority to branch managers who are closest to the points of action
One benefit: Quick decision-making — since decisions are taken at levels nearest to the points of action without requiring approval from many levels, the process is much faster and more responsive to customer needs

Question 3: 'Decentralisation is much more than a mere transfer of authority.' Elaborate this statement in the context of Surya Enterprises.

Decentralisation is a philosophy that implies selective dispersal of authority because it propagates the belief that people are competent, capable and resourceful
For Surya Enterprises, adopting decentralisation would develop initiative among branch managers — they would learn to depend on their own judgement and develop solutions independently, building confidence
It would also develop managerial talent as branch managers get opportunities to handle assignments independently and prove their abilities, creating a reservoir of qualified manpower for future promotions
Additionally, it would provide relief to top management which can then focus on important policy decisions rather than being burdened with both policy and operational decisions, facilitating growth

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Chapter sections

Chapter organising: Organising | Case Study Questions

Passage

Question 1: Identify the step of the organising process that Ramesh followed when he divided work into cutting, stitching, finishing, and packaging.

Question 2: Which step of organising did Ramesh perform when he grouped similar activities into departments? Name the basis of grouping used here.

Question 3: Explain the importance of 'establishing reporting relationships' in Ramesh's organisation and how it contributes to effective administration.

Passage

Question 1: What type of organisational structure did TechNova Ltd. adopt after restructuring? Give one reason why this structure was suitable for TechNova.

Question 2: State two advantages that TechNova will gain from the newly adopted divisional structure.

Question 3: Compare the earlier functional structure of TechNova with the new divisional structure on the basis of: (i) specialisation (ii) coordination (iii) managerial development.

Passage

Question 1: What is the informal organisation referred to in the passage? How does it originate?

Question 2: Identify one advantage and one disadvantage of informal organisation illustrated in the passage.

Question 3: Priya decided to use informal networks strategically. Justify this approach by explaining how informal organisation can support formal organisation.

Passage

Question 1: Identify the management concept Mr. Kapoor practised by assigning routine tasks to his supervisors.

Question 2: How did delegation benefit Mr. Kapoor and his supervisors? State one benefit for each.

Question 3: Explain the three elements of delegation with reference to the situation described in the passage.

Passage

Question 1: What type of management system does Surya Enterprises currently follow? What problem has it created?

Question 2: What change has the consultant suggested? State one benefit this change will bring.

Question 3: 'Decentralisation is much more than a mere transfer of authority.' Elaborate this statement in the context of Surya Enterprises.

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