What is Organising in Management? Process, Types & Key Features
MCQ on Organising is a key topic in Business Studies that helps students revise and test their understanding of the organising process, types of structures, and authority relationships in management. Practicing these MCQs is vital for Class 12 CBSE exams and building strong fundamentals in business operations.
| Aspect | Formal Organisation | Informal Organisation |
|---|---|---|
| Origin | Created deliberately by management | Arises spontaneously, naturally within formal structure |
| Structure | Clearly defined, documented | No written structure, based on relationships |
| Channels | Official, follows scalar chain | Unofficial, flexible communication |
| Purpose | Achieve organisational goals | Fulfil social and emotional needs |
MCQ on Organising: Practice Questions and Answers
MCQ on Organising covers core concepts like structure, authority, responsibility, and types of organisations. These multiple-choice questions help students prepare for board exams, school assessments, and competitive tests. Check each question's answer and explanation to clarify misunderstandings and boost confidence.
- When decision-making authority is retained by higher management levels, an organisation is said to be ______.
(a) Decentralised
(b) Centralised
(c) Fragmented
(d) None of the above
Answer: (b) Centralised - Accountability is derived from _______.
(a) Authority
(b) Formal position
(c) Responsibility
(d) All of the above
Answer: (c) Responsibility - Which of the following cannot be delegated?
(a) Responsibility and accountability
(b) Authority and responsibility
(c) Accountability and responsibility
(d) All of the above
Answer: (a) Responsibility and accountability - Authority granted to an employee should be ______.
(a) More than the responsibility entrusted to him
(b) Less than the responsibility entrusted to him
(c) Equal to the responsibility entrusted to him
(d) All of the above
Answer: (c) Equal to the responsibility entrusted to him - Which of the following is not a demerit of the informal organisation?
(a) It leads to the spreading of rumours
(b) It gives more importance to the structure and work
(c) It may restrict the implementation of changes
(d) It puts psychological pressure on members
Answer: (b) It gives more importance to the structure and work - Which of the following is not a merit of the informal organisation?
(a) It leads to faster spread of information and speedy feedback
(b) It helps to fulfil social needs
(c) It does not fulfil inadequacies in the formal organisation
(d) All of the above
Answer: (c) It does not fulfil inadequacies in the formal organisation - Which of the following is not a feature of the informal organisation?
(a) It originates from within the formal organisation
(b) Behaviour standards evolve from group norms
(c) Scalar chain of command is not followed
(d) It is deliberately created by management
Answer: (d) It is deliberately created by management - Which of the following is not a demerit of the formal organisation?
(a) It may lead to procedural delays
(b) It may lead to the spreading of rumours
(c) It emphasises rigidly laid down policies
(d) It places more importance on work than relationships
Answer: (b) It may lead to the spreading of rumours - Which of the following is not a demerit of functional structure?
(a) More emphasis on objectives of functional head
(b) Conflict of interests among departments
(c) It leads to occupational specialisation
(d) Difficulty in coordination among departments
Answer: (c) It leads to occupational specialisation - Identify the correct sequence of steps in the organising process.
(a) Departmentalisation, Establish reporting relationships, Assign duties, Identify/divide work
(b) Identify/divide work, Departmentalise, Assign duties, Establish reporting relationships
(c) Identify/divide work, Assign duties, Departmentalise, Establish reporting relationships
(d) Identify/divide work, Establish reporting relationships, Departmentalise, Assign duties
Answer: (b) Identify/divide work, Departmentalise, Assign duties, Establish reporting relationships
For a complete set of 15 MCQs with explanations, download the free PDF resource from Vedantu’s Commerce section.
Types of Organisational Structures in Management
Organising in management involves grouping resources and employees for efficiency. The most common structural types are functional and divisional structures, each with its advantages and limitations.
| Structure Type | Grouping Basis | Key Benefit | Key Limitation |
|---|---|---|---|
| Functional | By business function (e.g., marketing, production) | Specialisation, skill development | Coordination difficulties |
| Divisional | By product lines/geography | Product accountability, quicker decisions | Resource duplication, higher costs |
Organising Process Steps in Management
The organising process in management follows clear steps to ensure all resources and work are efficiently aligned:
- Identification and division of work
- Departmentalisation
- Assignment of duties
- Establishing reporting relationships
Key Concepts: Authority, Responsibility, and Accountability
Organising involves assigning authority and matching it with responsibility. Authority is the right to give orders, responsibility is the obligation to perform tasks, and accountability means being answerable for outcomes. Only authority can be delegated, not ultimate responsibility. Balancing these ensures smooth organisational functioning.
Why MCQ on Organising is Useful for Exams and Beyond
Practising MCQ on Organising is important for CBSE Class 12 board exams, college entrance tests, and management job exams. It also helps students test their depth of knowledge and prepares them for real-world business challenges by clarifying concepts like centralisation, decentralisation, and span of management.
Use Vedantu’s Commerce resources for further learning, including the Organisation Structure and Types of Organisation pages for detailed notes and solved MCQ sets.
Application and Real-World Examples
In business, managers use different organising structures to achieve goals. For example, a company launching a new product may create a divisional structure, while a bank often uses a functional structure for its operations. Understanding these concepts prepares students for workplace scenarios and management decisions.
More Resources for Organising MCQs
For extended practice, explore the Organising MCQ question banks and solved answer keys in PDF at Vedantu’s official website. You can access important MCQs, chapter summaries, and revision guides for quick, strong exam preparation.
Organising is a core management function tested through MCQs in school exams and professional courses. Knowing organisational types, processes, and authority-responsibility relationships helps students achieve higher scores and prepares them for business leadership roles, as explained in detail across Vedantu’s Commerce content.
FAQs on Organising MCQs with Answers and Explanations for Class 12
1. What is the process of organising in management?
Organising in management is the systematic process of arranging and coordinating resources to achieve organizational goals. It involves several key steps:
- Identifying and dividing work into manageable tasks.
- Departmentalisation: Grouping similar tasks or activities together.
- Assigning responsibilities and authorities.
- Establishing relationships and communication channels.
- Coordinating efforts to ensure smooth workflow and efficient resource allocation.
2. What are the types of organisation structure?
There are various organisational structures, each with its own advantages and disadvantages. Common types include:
- Functional structure: Groups employees based on their specialized skills and functions (e.g., marketing, finance).
- Divisional structure: Organizes employees into semi-autonomous divisions based on products, geography, or customer segments.
- Matrix structure: Combines functional and divisional structures, with employees reporting to both a functional manager and a project manager.
3. What are the features of a formal organisation?
A formal organisation is deliberately created and structured. Key features include:
- Clearly defined hierarchy of authority and responsibility.
- Established rules, procedures, and policies.
- Formal communication channels.
- Specialization of tasks and functions.
- A focus on efficiency and productivity.
4. What is the difference between formal and informal organisation?
Formal organisations are structured and deliberate, while informal organisations emerge spontaneously from social interactions. Key differences include:
- Formal: Defined structure, rules, and communication channels.
- Informal: Unofficial relationships and communication networks.
- Formal: Emphasis on efficiency and productivity.
- Informal: Focus on social interaction and employee satisfaction.
5. What is delegation and why is it important?
Delegation is the process of assigning responsibility and authority for a task to another person. It's crucial for:
- Effective time management for managers.
- Employee development and empowerment.
- Improved decision-making and efficiency.
- Increased accountability and ownership.
6. What is the difference between authority and responsibility?
Authority is the right to give orders and expect obedience, while responsibility is the obligation to complete a task. They must be balanced for effective performance.
7. What is the span of management?
The span of management refers to the number of subordinates a manager can effectively supervise. A wider span leads to fewer management levels, while a narrower span creates a taller organizational structure.
8. What is departmentalisation?
Departmentalisation is the process of grouping jobs into departments based on function, product, geography, or customer. This improves efficiency and coordination within the organization.
9. What are the benefits of organizing?
Effective organizing leads to several benefits:
- Improved efficiency and productivity.
- Clearer roles and responsibilities.
- Better coordination and communication.
- Enhanced decision-making.
- Increased accountability.
10. How does decentralization affect organizational structure?
Decentralization distributes decision-making authority throughout the organization, leading to flatter structures with more autonomy at lower levels. It contrasts with centralization, where power is concentrated at the top.
11. What is the difference between functional and divisional structure?
A functional structure groups employees by similar skills and functions (e.g., marketing, finance), while a divisional structure groups them by product lines, geographical areas, or customer segments. The choice depends on the organization's strategy and complexity.
12. What are some examples of organizing in practice?
Examples of organizing include creating a project team with clearly defined roles, establishing a departmental structure for a company, or designing a workflow for a manufacturing process. These demonstrate how organizing principles are applied in real-world settings.
