Test: Organising - 1 - Commerce MCQ

Informal Organisation is not an element of delegation. Delegation means designating or transferring of authority to subordinates or another person. For example assigning work by a manager to a subordinate to execute certain activities. It is the most important concept of management leadership.

Informal organisation structure individual are assigned various job positions. Informal organisation structure is the network of social relationships that arises in spontaneously due to the interaction of work. Informal organisation structure is spontaneously in interaction of work in various job positions is called informal organisation structure.

Scalar chain is one of the principle given by halenry fayol.This principle says that communication would be done in a chain way means in a formal and disciplined way. So,under informal organization there is not the maintainance of any formal rules.So,scalar chain is not followed under informal organization.

A tall structure of organisation is the one that has multiple levels of hierarchy. A tall structure of organisation has narrow span of management. That is, under such a structure a manager has charge of only a few subordinates.

Centralisation refers to the retention of decision making authority. Centralisation implies a situation where the decision making power is retained by the top level management. Under such a system, other levels of management do not have a right to intervene in policy making. The power and the authority, in such a system, remains concentrated in a few hands.

Delegation is the process of assigning tasks and responsibilities to other individuals in order to distribute workload and promote efficiency within an organization. In order for delegation to be effective, it is crucial that responsibility be accompanied by the necessary authority. This ensures that the individual to whom the task is delegated has the power and control to make decisions and take actions required to complete the assigned task successfully. The key point to understand is that responsibility without authority can lead to ineffective delegation and hinder the overall productivity of the organization.

Why is authority essential for effective delegation?

• Decision-making: Authority empowers the individual to make decisions related to the delegated task without seeking constant approval, which speeds up the decision-making process.


• Flexibility and adaptability: With authority, the individual can adapt to unforeseen circumstances and make necessary adjustments to achieve the desired outcome.


• Accountability: Authority ensures that the person responsible for the task is also accountable for its success or failure.


• Efficiency: When authority is given, the individual can access the resources and information required to perform the task effectively, leading to improved efficiency.


• Timely completion: Authority allows the individual to prioritize tasks, allocate resources, and take necessary actions to ensure timely completion of the delegated task.

Therefore, while responsibility is an important aspect of delegation, it is incomplete without the necessary authority. Authority empowers individuals to take ownership of their tasks, make decisions, and achieve desired outcomes, ultimately leading to effective delegation and organizational success.

Span of control is the term now used more commonly in business management, particularly human resource management. Span of control refers to the number of subordinates a supervisor has.

Rumours are a result of informal organisation. They can have adverse effect on the working environment. It may result in arguments or conflicts among the people of the organisation. For example, a rumour about the boss may pop up during a communication among a group of employees, which may affect the superior-subordinate relationship.

Sometimes an organisation has more than one product line. Under such a scenario the organisation groups the activities on the basis of the product line. Such a grouping of activities on the basis of product line is known as divisional organisation. Each division further has its own sub-departments such as production, finance, etc.

Functional Organisation involves grouping of the functions of similar nature. Each group forms a separate department that report to one head. For example, departments may be divided on the basis of functions such as production, human resources, etc. that report to the managing director of the organisation.