Class 12 Business Studies - Chapter Organising NCERT Solutions | Why delegation is considered essential f
Why delegation is considered essential for effective organising?
Delegation refers to the transfer of authority from superior to subordinate for the completion of the tasks. It is a pre-requisite to the efficient functioning of an organisation because it enables a manager to use his time on high priority activities. It is essential for effective organising because of its benefits:
1. Effective Management: By empowering the employees, the managers are able to function more efficiently as they get more time to concentrate on important matters.
2. Employee Development: Delegation provides more opportunities to the employees to utilize their talent and develop their abilities. It helps to make them better leaders and decision makers, thus, creating future managers.
3. Motivation of employees: Delegation provides a feeling of status and recognition to subordinates, as it is not only a process of sharing workload, but also involves trust of the superior on his subordinate. Entrustment of responsibility builds up the self-esteem of the employees and encourages them to perform better.
4. Facilitation of growth: Delegation helps in the expansion of an organisation by providing a ready workforce to take up leading positions in new ventures. Trained and experienced employees are able to play a significant role in launching new projects of the organisation.
5. Basis of management hierarchy: Delegation of authority establishes superior subordinate relationships, which are the basis of hierarchy of management. This helps employees to know ‘who has to report to whom’. Thus, duties and powers of each individual become clear.
6. Better coordination: The elements of delegation namely authority, responsibility and accountability helps to define the powers, duties and responsibilities related to various positions in an organisation. This helps to avoid overlapping and duplication of work and facilities coordination, as it gives a clear picture of the work being done at various levels.
More Questions From Class 12 Business Studies - Chapter Organising
- Q:-
A company X limited manufacturing cosmetics, which has enjoyed a pre-eminent position in business, has grown in size. Its business was very good till 1991. But after that, new liberalised environment has seen entry of many MNC’s in the sector. With the result the market share of X limited has declined. The company had followed a very centralised business model with Directors and divisional heads making even minor decisions. Before 1991 this business model had served the company very well as consumers had no choice. But now the company is under pressure to reform. What organisation structure changes should the company bring about in order to retain its market share? How will the changes suggested by you help the firm? Keep in mind that the sector in which the company is FMCG.
- Q:-
A company manufacturing sewing machines set up in 1945 by the British promoters follows formal organisation culture in totality. It is facing lot of problems in delays in decision making. As the result it is not able to adapt to changing business environment. The work force is also not motivated since they cannot vent their grievances except through formal channels, which involve red tape. Employee turnover is high. Its market share is also declining due to changed circumstances and business environment. You are to advise the company with regard to change it should bring about in its organisation structure to overcome the problems faced by it. Give reasons in terms of benefits it will derive from the changes suggested by you.
- Q:-
Neha runs a factory wherein she manufactures shoes. The business has been doing well and she intends to expand by diversifying into leather bags as well as western formal wear thereby making her company a complete provider of corporate wear. This will enable her to market her business unit as the one stop for working women. Which type of structure would you recommend for her expanded organisation and why?
- Q:-
Decentralisation is an optional policy. Explain why an organisation would choose to be decentralised.
- Q:-
Decentralisation is extending delegation to the lowest level. Comment.
- Q:-
Identify the network of social relationships which arises spontaneously due to interaction at work.
- Q:-
A company, which manufactures a popular brand of toys, has been enjoying good market reputation. It has a functional organisational structure with separate departments for Production, Marketing, Finance, Human Resources and Research and Development. Lately to use its brand name and also to cash on to new business opportunities it is thinking to diversify into manufacture of new range of electronic toys for which a new market is emerging. Which organisation structure should be adopted in this situation? Give concrete reasons with regard to benefits the company will derive from the steps it should take.
- Q:-
Can a large sized organisation be totally centralised of decentralised? Give your opinion.
- Q:-
Draw a diagram depicting a functional structure.
- Q:-
How does informal organisation support the formal organisation?
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