1.Explain types of organisation.
Ans :-

• Effective Management depends on ideal organization. The structure of organization indicates types of organizations.
• The nature, size and responsibilities of business unit and its classification decides the type of organization:
• There are five types of Organization:
  1) Linear Organization
  2) Functional Organization
  3) Formal Organization
  4) Informal Organization
  5) Matrix Organization

1. Linear Organization:

• Linear organization is the most simple and ancient type of organization.
• This format of organization is used in Army since a very long time and so it is also known as Army organization.
• In linear organization, the top level holds the maximum power.
• In other words, the power is centralized at the top level.
• The distribution of power and responsibilities is done in straight line from top level to bottom level.
• Since, the distribution of power is in a straight line from top to bottom level, it is called linear organization.

Formation of linear organization:

• In a linear organization, the greatest power is with the Board of Directors. They take policy based decisions for the organization.
• The Board of Directors empowers the General Manager.
• The General Manager is the main Administrative Head. It is his work to ensure that the lower employees follow the task and decisions taken by the Board of Directors.
• Below the General Manager are the various departments such as production department, administrative department and sales department.
• For each department there is a department head. The department head is responsible for the work going on his entire department.
• Under each department head there are several officers. For example, there will be purchase officer and production officer in the production department. Similarly there will be administrative officer and accounts officer in the administrative department, etc.
• Under such officers, supervisors, foreman and clerks, etc. work. Finally, the workers work under the foreman. ‘

2. Functional Organization:

• Linear organization gives more importance to department than work. This is the greatest limitation of this kind of structure.
• Keeping this limitation in mind, the ‘work based’ or say ‘function based’ organization came into existence.
• An organization with a functional structure is divided based on functional areas, such as IT, finance, or marketing. ’
• In this structure, the experts with specialized knowledge are given special responsibilities for areas of their expertise. This type of structure is called functional organization. For example, Human Resource Manager will look after the recruitment, transfer, promotions, etc.

Formation of functional organization:

• The core of functional organization lies in giving special importance to work distribution on the basis of specialization.
• Specialized experts are appointed for each kind of work. These experts do not serve only as advisors but they are also administrative heads of their work areas. They are fully responsible for the task assigned to them. For example, the purchase officer is fully responsible for ail type of purchase-related work.
• The Chief Executive Officer is at the top and holds the supreme powers of the functional organization.
• A unit can be divided into two (or more) parts. Each unit has its assigned list of activities and works.
• The units then assign the tasks and works to different officers. For example, the factory unit (or department) will assign the work to Quality Control Officer, Chief Maintenance Engineer and so on.
• Each officer then gives orders to the employees under him to perform the task.

3. Formal Organization:

• In order to achieve the predefined goals, the formal structure of relationship established among persons and work is called formal organization.
• Linear organization and functional organization are types of formal organization.
• In formal organization, necessary powers are given to enable the person to perform certain kind of responsibilities.
• The organization also clarifies matters related to delegation of authority among superior officers.

4. Informal Organization:

In the formal organizational structure, individuals are assigned various job positions. While working at those job positions, the individuals interact with each other and develop some social and friendly groups in the organization. This network of social and friendly groups forms another structure in the organization which is called informal organizational structure.

• The informal organizational structure gets created automatically and the main purpose of such structure is getting psychological satisfaction.
• The existence of informal structure depends upon the formal structure because people working at different job positions interact with each other to form informal structure. So, if there is no formal structure, there will be no job position and there will be no informal structure.
• The members while doing the formal work also interact at social level, bring their own values and assumptions during work discussion. The members of informal organization develop friendship, alliances, trusted sources of information and share preferences on how work should be done.

5. Matrix Organization:

• The organizational structure in which people with similar skills are pooled for work assignments, resulting in more than one manager is called a matrix organization.
• Matrix organization is a combination of work based (functional organization) and project based organization.
• For example, all engineers may be in one engineering department and report , to an engineering manager (i.e. part of functional organization structure), but these same engineers may be assigned to different projects and report to a different engineering manager or a project manager while working on that project. Therefore, each engineer may have to work under several managers at same point of time.

Formation of matrix organization:

• In this type of organization, several project managers are appointed for various projects and each project manager is given different type of work responsibilities.
• The responsibility of the project manager is to successfully complete the project assigned to him that too on time.
  ->For each project, a pool of employees is made from different areas of the company. Each of these employees holds some specific skill which is needed by the project.

2.Explain steps for the process of organisation.
Ans :-
Introduction:

• The formation of organizing is a scientific process.
• The lack of proper formation of organization cannot sustain for longtime. Hence the unit is slowly destroyed.
• It is through ensuring proper steps of the formation of organizing that the functional relations are established in a proper manner which should be done properly.

Process of Organizing:

1.Clarification of Objectives:

• Before formation of organizational structure, it is necessary to have the clearly defined goals and its proper understanding.
• The main and the sub goals should be properly interpreted and on the basis of which organization is formed.
• Hence the establishment of proper goals and with proper clarity is the first step towards proper organizing.

2. List of Functions:

• fter having clearly defined goals, with the help of organizational structure, the list of work to be done is prepared.
• At the time of preparing such a list it is ensured that not a single task is left or is repeated, and a special care is taken for the same.
• Hence the list of functions should be prepared on the basis of its proper consideration and the final distribution should be done.

3 . Departmentation of Function: distribution.

• Once when the list of functions is prepared, the work area similar in nature are classified and similar functions are placed together, then the division of work is done accordingly.
• Work is divided as per purchase area, sales area, accounts area, etc. and then work division and specialization is planned.
• The division is planned according to nature of unit, geographical area, work area,etc
• For E.g., The division of business unit selling products in entire country, zone wise, division of selling as per south , east , west, north zones.
• In the same way, work based distribution as per advertising task, packing task, distribution task etc. in sales department is also considered at the time of division of work.

4. To Determine Departmental Positions and Abilities:

• Once when the work is departmentalized properly, the task to have proper persons to handle the responsibilities is created as per positions and abilities are planned accordingly.
• For example, sales officer for sales department.
  ->At the same time, the sub posts or categories as per the persons to be appointed,

5. The Delegation of Power and Responsibilities:

•   Divisional heads, sub divisional heads and skill based heads are finalized and then all the heads should be given power and responsibilities so that they can perform their work well.
• In addition to that, clarification should be done of each person’s post. So that each person will get the idea of the responsibilities assigned.
• It is also necessary to have the proper proportion of power and responsibilities.

6. Establishment of Inter Relationships:

• After the proper distribution of work, and delegation of power and responsibilities among different departmental personnel, the formation of inter relations should be made clear.
• With the help of departmentalization, the power and responsibilities are decentralized but the same can be centralized with the help of formation of inter relations.

7. To Prepare Organizational Chart:

• In order to enable the people to have the perfect idea of each one’s positions, a proper map should be prepared.
• Such a chart should be properly and the same should be displayed on the notice board.

3.Explain characteristics of organising.
Ans :-

Characteristics of organizing:
1. Goal oriented activity:

• The main objective of organizing is to achieve business goals.
• The business defines the main objective as well as departmental objectives or sub-goals. It also defines individual goals of the employees.
• Organizing is a linear structure that co-ordinates with the goals of business, departmental goals and goals of individual employees. Hence organization is called a goal oriented activity.

2. Planning based:

• Planning is the first step of management. Organization is done on the basis of planning and objectives developed by the management.
• Hence it can be said that organization is based on proper planning.

3. Delegation of authority and responsibilities:

• The workers of the business unit work for the business goals given to them.
• These people are allotted work as per their capabilities and their skills.
• A person is delegated authorities on the basis of his designation.
• Hence organizing is a structure that establishes relationship of authority and responsibility among the people.

4. Gives importance to human element:

• Human beings are at the centre of organizing.
• The success of an organization depends on its employees.
• Effective organizational structure is based on developing effective human relationships.

5. Flexibility:

• After forming the organization the management may come across situations where in they would have to make changes in the organization.
• It is possible that unit may experience major changes in business environment, technological’ advancement, etc. As a result, the organization will have to change based on these situations. Hence, organizing is flexible.

6. Establishment of inter-relationships:

• Organizing establishes inter-relationship among work, positions or departments.
• Organizing clarifies the relationships of one work with the other work and one department with the other department.

7. Monitoring and control:

• Monitoring, controlling and coordinating are the basic requirements of an organization.
• Under monitoring and controlling, organizing checks matters such as whether the employees are performing their task as per the powers and responsibilities assigned to him or not.

8. Group activities:

• In an organization, many people work together for the accomplishment of a common goal.
• Organizing provides such a structure which enables smooth functioning of group activities.

9. Controlled administrative structure:

• Organizing is a specific type of controlled administrative structure.
• In any business unit, rules and controls are required in order to define relationships. Organizing also does the same.

4.Describe importance of decentralisation.
Ans :-
Importance of decentralization:

• The idea of decentralization is becoming popular in modern times owing to several advantages it holds.
  Its importance can be understood through the following points:
  1. Quick decisions:
• In decentralization, the person who has the power to take the decision is actively involved in his area of decision making. As a result, decisions are taken quickly and effectively.

2. Less work load on top level:

• The top level is the level where most of the policy matter related decisions are taken.
• By adopting decentralization, the decision making powers are given to middle or lower level. Hence, the work load on upper level is reduced.

3. Increases motivation:

• Under decentralization, employees of middle level and lower level are given ^ certain decision making independence.
• These employees become more motivated because they get a feeling that their seniors trust them and their decisions.
• Moreover, when the decisions become correct, they get more motivated and confident.

4. Increase in management abilities:

• Under decentralization, employees of middle level and lower level are given certain decision making independence.
• Hence, these employees become efficient leaders. They develop skills to work in coordination.
• They develop good administrative skills and they learn the methods of controlling the staff.

5. Effective control:

• Under decentralization, the managers of all the levels have enough power to manage, make decisions and control their respective areas.
• As a result, they can exercise control over the employees, can take decisions if employees makes mistakes and can take disciplinary actions. This makes management easy and controlling effective.

6. Harmony is created:

• Due to decentralization, employees of all levels are included in the decision making process and hence are given importance.
• All the levels of officers and employees i.e. the decision makers and the followers discuss business matters and then take proper decisions.
• This increases interaction among people, feeling of onenesls and harmony.

5.Explain importance of delegation of authority.
Ans :-
Importance of delegation of power can be understood from the following points:

1. Work-efficient management:

• Due to delegation of power, the officers working on higher level can free themselves from routine and basic work. This helps them to focus more on important areas.
• This also helps to accomplish business objectives easily due to which the business unit gets work-efficient management.

2. Development of employees:

• Delegation empowers various employees working in the organization to take decisions on several matters. This improves their decision making ability, confidence and overall development.

3. Motivation:

• Delegation of power enables the employees to develop their abilities.
• When the higher administrator delegates the power to the subordinates, such subordinates not only get the work accomplished but at the same time also gets motivated due to such work accomplishment and the responsibility and power vested on them.

4. Benefit of specialization:

• Different individuals have different abilities and specialization. The administrator may be specialized in marketing but not in finance.
• The administrators can identify specialists from various areas of the organization and delegate them powers based on their specialization. Hence, the organization gets the benefit of specialized skills.

5. Co-ordination:

• Delegation improves the relationship of helper and upper officers.
• The middle and lower level employees get the chance to take their decisions independently. In this way, their opinions are respected and they are able to develop inter personal relations in the organization.
• These things help to improve co-ordination in the unit.

6. Scope for expansion:

• Due to delegation of power, the upper level officers become free from several works.
• Hence, they can focus on expansion of the business.