Business Studies Part I
Business Studies Part II

Solution of question paper

1 Mark question solutions

Q1 Define ‘Organising’?

Answer Organising is defined as a process that initiates implementation of plans by clarifying jobs, working relationships and effectively deploying resources for attainment of identified and desired results.

Q2 Differentiate between ‘formal’ and ‘informal’ organisation on the basis of örigin

Answer:
Formal organisation arises as a result of companies rules and policies whereas informal organisation emerges spontaneously from within the formal organisation as a result of social interactions, amongst the employees.

Q3 Give the meaning of ‘supervision’ as an element of directing.
Answer:
Supervision is the process of overseeing the work of a subordinate by his superior.

Q4 Differentiate between ‘formal’ and ‘informal’ organisation on the basis of ‘flow of communication’. 
Answer:
In a formal organization the communication takes place through the scalar chain whereas in an informal organization communication can take place in any direction there is no planned route. 

Q5 What is meant by span of management?

Answer:
Span of management refers to the number of subordinates that can be effectively managed by a superior. A narrow span of control would necessitate more number of levels in the organisation or vice versa.  

5 marks case studies

Q6 Ramdas, aged 49 is working in an aviation company. He is the senior most employee in his division. He is even senior to the division manager, Kanaputti. Ramdas is considered one of the most committed, capable and hard-working employees. As a result of his abilities and seniority, he generally received the work assignments of his choice. Although there was no formal designation of various „special’ projects assigned to Ramdas, he handled them as a matter of routine. A problem developed when an able and intelligent person Nagarjuna, aged 33, was appointed by Kanaputti. Nagarjun’s previous three years’ experience in the closely related work, made it possible for him to catch on to the routine work of his new job more rapidly than was customary for a new employee. On several occasions, Kanaputti noticed the tension developing between the two employees. However, he didn’t want to get involved in their personal issues as long as the work was completed effectively and efficiently by them. One day, the tension between them reached the boiling point and Ramdas complained to

Kanaputti stating that his duties were being largely taken over by Nagarjun. Kanaputti issued the order stating the clear allocation of the jobs and related duties between the two. He further clarified the working relationship between them by specifying who was to report to whom. This helped in reducing the workload, enhancing productivity and removing ambiguity

1.Identify and state the step of organizing process which has not been carried out properly and contributed to this problem.

2.State the two steps of the organizing process which have been taken by Kanaputti to respond to the complaint of Ramdas.

3.Also state two points of importance of organizing as reflected in the above case.

Answer

  1. The step of organizing process which has not been carried out properly and contributed to this problem is Assignment of duties.
    Assignment of Duties: Once departments have been created each of them is placed under the charge of an individual and then jobs are allocated to the members as per their job positions.
  2. The two steps of the organizing process which have been taken by Kanaputti to respond to the complaint of Ramdas are listed below:
  3. Assigning the duties
  4. Establishing reporting relationship.
  5. The two points of importance of organizing as reflected in the above case are described below:
  6. Optimum utilization of resources: Organising ensures best possible use of all forms of resources i.e. physical, financial and human resource. It ensures systematic assignment of jobs thereby curbing overlapping of work and avoiding possibilities of duplication of work. This helps in preventing confusion and minimising the wastage of resources and efforts.
  7. Adaptation to change: The process of organising provides stability to the enterprise as it can then continue to survive and grow inspite of changes in the business environment. It enables the organisation structure to be suitably modified and the revision of inter-relationships amongst managerial levels to pave the way for a smooth transition.

Q7 “Shan Spices Ltd.” are the manufacturer of different food specific spices like Rajmaa Masala, Cholley Masala, Aaloo Parantha Masala etc. Mr. Raghav, the owner of the company has created different departments for purchase, production, marketing, finance and human resource. There are thirty employees working in the organisation. Planning is of paramount importance to the company as Mr. Raghav believes that effective planning leads to achievement of organisational objectives. So in order to make employees focus on objectives, he issued instructions that during working hours only official matters will be discussed. He made certain rules and code of conduct for the employees to follow, according to which employees are not allowed to visit and talk to the employees of other departments except for official work. He emphasised on work performance which resulted in smooth functioning of the organisation.

  1. Identify and state the type of organisation mentioned in the above para.
  2. State one feature of the concept identified in part (a) as mentioned in the above para.
  3. What was the purpose behind the formulation of rules for the employees that restricted their personal communication with the employees of other departments?
  4. State two values violated by Mr. Raghav.

Answer:

  1. Formal organisation is the type of organisation mentioned in the above paragraph. Formal organisation refers to the organisation structure which is deliberately created by the management to accomplish a particular task. It clearly defines the boundaries of authority and responsibility and facilitates systematic coordination among the various activities to achieve organisational goals.
  2. One feature of formal organisation is that it clarifies who has to report to whom by specifying the relationships among various job positions and the nature of their interrelationship.
  3. The purpose behind the formulation of rules for the employees that restricted their personal communication with the employees of other departments is to ensure discipline at workplace and avoid wastage of time. This is help to curb the emergence of informal organisation to a certain extend and increase work efficiency.
  4. The two values violated by Mr. Raghav are:
  5. Liberty to employees
  6. Fulfilment of emotional needs