Q.'Compro Solutions' offers IT services to clients across the country. During Covid-19, to accommodate changes taking place in the business environment, it suitably modified its organisation structure in a way that work from home became the new way of working for all employees bringing cost benefits and flexibility in the organisation. The point of importance of organising discussed above is : (A) Benefits of specialisation (B) Adaptation to change (C) Development of personnel (D) Clarity in working relationships

Showing the 12 most recent of 33 on this concept.

1. CBSE 2026Set 66/1/11 markMCQ
   Q.Organising is the process that initiates implementation of plans by clarifying jobs and working relationships and effectively deploying resources for attainment of identified and desired results. Organising process thus involves a series of steps that need to be taken in order to achieve the desired goal. Arrange the steps of the process of organizing in the correct order : (A) Identification and Division of work, Assignment of duties, Departmentalisation, Establishing authority and reporting relationships (B) Identification and Division of work, Assignment of duties, Establishing authority and reporting relationships, Departmentalisation (C) Departmentalisation, Identification and Division of work, Establishing authority and reporting relationships, Assignment of duties (D) Identification and Division of work, Departmentalisation, Assignment of duties, Establishing authority and reporting relationship

   ›Reveal solutionSolution

   The correct sequence of organising steps is: Identification and Division of work → Departmentalisation → Assignment of duties → Establishing authority and reporting relationships.

   Organising is the bridge between planning and execution. Once objectives are set, someone has to translate them into a working structure—deciding who does what, how tasks cluster together, and who reports to whom. The process unfolds in a logical sequence, each step building on the previous one.

   The first step is Identification and Division of work. Before anything else, management must identify all the activities necessary to achieve the organisation's goals and then divide this total work into manageable chunks. This division is guided by the principle that no individual can perform all tasks; work must be broken down according to specialisation, skill requirements, and logical groupings. For instance, a manufacturing firm identifies production, marketing, finance, and human resource activities as distinct areas of work.

   Once the work is identified and divided, the next step is Departmentalisation. Here, similar or related activities are grouped together into departments or divisions. This grouping can be done on various bases—by function (sales, production), by product (electronics division, textiles division), by territory (northern region, southern region), or by customer type (retail clients, corporate clients). Departmentalisation creates a framework within which people will work, making coordination easier and accountability clearer.

   With departments in place, the organisation moves to Assignment of duties. Now that we know which activities belong to which department, specific jobs are allocated to specific individuals based on their qualifications, skills, and experience. Each person is given a clear set of responsibilities. A sales executive is assigned client acquisition, a production supervisor is given shop-floor oversight, and so on. This step ensures that every task has an owner.

   The final step is Establishing authority and reporting relationships. Once duties are assigned, the organisation must define who has the authority to make decisions, who supervises whom, and who reports to whom. This creates the chain of command—the formal lines of authority that run from top management down to the lowest level. It clarifies accountability and ensures that coordination happens smoothly. Without this step, even well-assigned duties can lead to confusion and conflict.

   Important

   The sequence is cumulative: you cannot assign duties before you know which departments exist, and you cannot establish reporting relationships before you know who is doing what.

   Looking at the options, only option D follows this natural, logical flow: first identify and divide the work, then group it into departments, then assign specific duties, and finally establish the authority structure that ties it all together.

   ✓Final answer

   The correct order of organising steps is (D) Identification and Division of work → Departmentalisation → Assignment of duties → Establishing authority and reporting relationships, as each step logically depends on the completion of the one before it.

2. CBSE 2026Set 66/3/11 markMCQ
   Q.Match the step of the process of organising given in Column-I with its explanation given in Column-II : Column-I 1. Departmentalisation 2. Establishing authority and reporting relationships 3. Identification and division of work 4. Assignment of duties Column-II

   (i) Each individual is told who he has to take orders from and to whom he is accountable

   (ii) The work is divided into manageable activities so that duplication can be avoided and burden of work can be shared among the employees

   (iii) Work of different job positions is defined and work allocated to various employees in accordance with their skills and competencies

   (iv) Activities of a similar nature are grouped together, which facilitates specialization Choose the correct option from the following : (A) 1-(i), 2-(ii), 3-(iii), 4-(iv) (B) 1-(iv), 2-(i), 3-(ii), 4-(iii) (C) 1-(iv), 2-(i), 3-(iii), 4-(ii) (D) 1-(ii), 2-(iii), 3-(i), 4-(iv)

   ›Reveal solutionSolution

   The correct sequence matches departmentalisation with grouping similar activities (iv), establishing authority with defining reporting lines (i), identification and division of work with breaking work into manageable parts (ii), and assignment of duties with allocating work based on skills (iii) — making option (B) correct.

   Organising is the management function that transforms plans into action by creating a structure of roles and relationships. Managers build this structure through a systematic process, moving from the broad task of dividing work to the specific task of telling each person exactly what they must do and to whom they report.

   The process begins with identification and division of work, the foundational step where managers look at the total work to be done and break it into distinct activities. This prevents duplication — imagine if two people unknowingly worked on the same report — and ensures the workload is shared sensibly across the organisation. The explanation in (ii) captures this perfectly: work is divided into manageable activities to avoid duplication and share the burden among employees.

   Once work is divided, the next logical step is departmentalisation. Here, activities of a similar nature are brought together into departments or units. If you have identified tasks related to selling, advertising, and customer service, you group them into a Marketing Department; tasks involving hiring, training, and payroll go into Human Resources. This grouping facilitates specialisation because people in each department develop deep expertise in their area. Statement (iv) describes exactly this: activities of a similar nature are grouped together to enable specialisation.

   After departments are formed, the organisation needs a skeleton of authority — who reports to whom, who can give orders, who is accountable for results. This is establishing authority and reporting relationships. Every individual must know their place in the hierarchy: a sales executive reports to the sales manager, who reports to the marketing head, and so on. This clarity prevents confusion and ensures smooth coordination. Explanation (i) matches this step: each individual is told who he has to take orders from and to whom he is accountable.

   Note

   Authority flows downward (the power to command), while accountability flows upward (the obligation to answer for results). Establishing these relationships creates the formal chain of command.

   The final step is assignment of duties, where the organisation moves from structure to individual roles. Each job position is defined in detail — what tasks, what responsibilities, what standards — and then work is allocated to specific employees based on their skills and competencies. You wouldn't assign accounting work to someone trained in engineering, nor creative design to someone whose strength is data analysis. Statement (iii) describes this: work of different job positions is defined and allocated according to skills and competencies.

   Important

   The sequence is deliberate: you cannot assign duties (step 4) before you know what departments exist (step 1), and you cannot establish reporting relationships (step 2) before you have divided the work (step 3). Each step builds on the previous one.

   Matching the columns:

   • 1. Departmentalisation → (iv) grouping similar activities for specialisation
   • 2. Establishing authority and reporting relationships → (i) defining who reports to whom
   • 3. Identification and division of work → (ii) dividing work to avoid duplication and share burden
   • 4. Assignment of duties → (iii) allocating work based on skills and competencies

   ✓Final answer

   The correct match is 1-(iv), 2-(i), 3-(ii), 4-(iii), making option (B) the right answer. This sequence reflects the logical flow of organising: divide the work, group similar tasks, establish who commands whom, and finally assign specific duties to individuals based on their abilities.

3. CBSE 2026Set MARCH1 mark
   Q.What is Organisation?

   ›Reveal solutionSolution

   Organisation = a structured framework of duties and authority relations to achieve goals.

   In this GSEB Class-12 Commerce organising question, organisation is the management function of identifying and grouping activities, assigning duties, delegating authority and creating coordination among people so that the enterprise works as a unified whole toward common objectives.

   ✓Final answer

   Organisation is the arrangement of activities, people and authority-responsibility relationships that enables goals to be achieved efficiently.

4. CBSE 2026Set MARCH1 markMCQ
   Q.The first step in organising process is ____________.

   (a) Departmentalisation

   (b) Assignment of duties

   (c) Identification and division of work

   (d) Establishing reporting relationships

   ›Reveal solutionSolution

   The correct option is (c) Identification and division of work. It is the first step, followed by departmentalisation, assignment of duties and establishing reporting relationships.

   ✓Final answer

   (c) Identification and division of work.

   The organising process has four steps in this order: (1) Identification and division of work — the total work is divided into smaller manageable activities to avoid duplication; (2) Departmentalisation — similar activities are grouped into departments; (3) Assignment of duties — jobs are allotted to suitable people; (4) Establishing reporting relationships — authority-responsibility links are fixed. Since the work must be identified and divided before it can be grouped or assigned, option (c) is the correct first step, as per the Karnataka 2nd PUC Business Studies syllabus.

5. CBSE 2026Set ANNUAL1 markMCQ
   Q.Assertion (A): Organisation is unnecessary. Reason (R) : Organisation gives birth to corruption.

   (a) Both A and R are correct and R is the correct explanation of A.

   (b) Both A and R are correct but R is not the correct explanation of A.

   (c) A is correct but R is incorrect.

   (d) Both A and R are incorrect.

   (a) Both A and R are correct and R is the correct explanation of A.

   (b) Both A and R are correct but R is not the correct explanation of A.

   (c) A is correct but R is incorrect.

   (d) Both A and R are incorrect.

   ›Reveal solutionSolution

   Both the Assertion and the Reason are false, so the correct option is "Both A and R are incorrect."

   Assertion A says "Organisation is unnecessary" — this is false. Organising is one of the essential functions of management: it identifies and groups activities, assigns them to individuals/departments, and establishes authority-responsibility relationships. Without organising, there would be duplication of work, unclear reporting lines, and chaos — large-scale, coordinated business activity would be impossible.

   Reason R says "Organisation gives birth to corruption" — this is also false. Sound organisation structure, with clearly defined authority, responsibility and accountability at each level, is actually one of the main safeguards AGAINST corruption and malpractice, because it makes it easy to trace who is responsible for a decision or lapse. Corruption is more a failure of ethics/control within an organisation, not a necessary consequence of having one.

   Since both the Assertion and the Reason are factually wrong, the correct option is that both are incorrect.

   ✓Final answer

   Both A and R are incorrect — organisation is necessary for any sizeable enterprise, and a well-designed organisation structure helps prevent, rather than cause, corruption.

6. CBSE 2026Set ANNUAL1 mark
   Q.Which step in the process of organising deals with grouping similar activities together which helps employee become specialised ?

   ›Reveal solutionSolution

   The step is Departmentalisation.

   The process of organising has the following steps:

   1. Identification and division of work.
   2. Departmentalisation — grouping similar or related activities into units/departments (e.g., production, sales, finance), which lets employees in each department specialise in a narrow set of activities, improving efficiency and making coordination and performance evaluation easier.
   3. Assignment of duties to specific individuals/positions.
   4. Establishing reporting relationships, so each person knows whom to report to and who reports to them.

   Grouping activities by similarity so that "employees become specialised" is exactly the purpose of Departmentalisation.

   ✓Final answer

   Departmentalisation is the correct answer.

7. CBSE 2025Set 66/1/11 markMCQ
   Q.Organising provides a clear description of jobs and related duties. This helps to avoid confusion and duplication. The point of importance of organizing described above is : (A) Adaptation to change (B) Effective administration (C) Development of personnel (D) Expansion and growth

   ›Reveal solutionSolution

   A clear description of jobs and duties that prevents confusion and duplication points to Effective administration — the ability to run operations smoothly through well-defined roles and responsibilities.

   When an organization lays out exactly what each job entails and what duties belong to whom, it creates a framework where everyone knows their territory. Think of it as drawing clear boundary lines on a map: each person understands where their responsibilities begin and end, and there's no ambiguity about who handles what task.

   This clarity serves a very specific purpose in management. Confusion arises when two people think the same task is the other's responsibility, or worse, when both attempt the same work simultaneously. Duplication wastes time, effort, and resources — imagine two departments independently preparing the same report, or two managers issuing conflicting instructions to the same team. A well-organized structure with defined job descriptions eliminates these inefficiencies.

   The term that captures this benefit is effective administration. Administration, at its core, is about the smooth execution of plans and policies. When roles are clear, instructions flow through proper channels, accountability is established, and work proceeds without the friction of overlapping duties or gaps in responsibility. Managers can coordinate activities more easily because they know exactly which levers to pull and who is responsible for each outcome.

   Note

   The other options address different benefits of organizing: adaptation to change refers to flexibility in structure, development of personnel relates to growth opportunities and specialization, and expansion and growth concerns the ability to scale operations. None of these directly address the elimination of confusion and duplication.

   The question zeroes in on a very practical, day-to-day advantage. Clear job descriptions and duty allocation create an administrative machinery that runs without constant clarification, without stepping on toes, and without the chaos of undefined responsibilities. This is the essence of effective administration — the organization functions as it should, with minimal friction and maximum clarity.

   ✓Final answer

   The point described — avoiding confusion and duplication through clear job and duty descriptions — represents Effective administration (Option B), as it enables smooth, coordinated execution of organizational activities.

8. CBSE 2025Set 66/2/11 markMCQ
   Q.'The process of organizing allows a business enterprise to accommodate changes in the business environment. It allows the organization structure to be suitably modified to pave the way for a smooth transition.' The point of importance of organizing function of management highlighted in the above lines is : (A) Benefits of specialization (B) Clarity in working relationships (C) Optimum utilization of resources (D) Adaptation to change

   ›Reveal solutionSolution

   Organizing creates a flexible structure that can be modified when the business environment shifts, enabling smooth transitions during change. The answer is (D) Adaptation to change.

   The question describes organizing as a function that helps a business accommodate changes and allows the structure to be modified for a smooth transition. This points directly to the dynamic, responsive nature of organizing rather than its static benefits.

   Let's see why each option does or doesn't fit what the passage emphasizes.

   1. Understanding what the passage highlights

      The key phrases are "accommodate changes in the business environment" and "suitably modified to pave the way for a smooth transition." Both speak to the organization's ability to respond and adjust when external or internal conditions shift — new technology, market disruptions, regulatory changes, or growth phases.

   2. Evaluating option (A): Benefits of specialization

      Specialization means dividing work so that individuals or departments focus on specific tasks, building expertise and efficiency. While organizing does enable specialization by defining roles clearly, the passage says nothing about expertise, efficiency gains, or task division. It talks about change and modification, not about becoming better at fixed tasks.

   3. Evaluating option (B): Clarity in working relationships

      Clarity in working relationships refers to well-defined reporting lines, authority, and responsibility — who reports to whom, who decides what. Organizing certainly provides this, but again, the passage doesn't mention reporting structures, authority, or reducing confusion. It focuses on the ability to modify the structure, not on making the current structure clear.

   4. Evaluating option (C): Optimum utilization of resources

      Optimum utilization means deploying human, financial, and physical resources efficiently to avoid waste and duplication. Organizing does help allocate resources better, but the passage doesn't discuss efficiency, resource allocation, or waste reduction. The emphasis is on flexibility and transition, not on getting the most out of what you have right now.

   5. Evaluating option (D): Adaptation to change

      Adaptation to change is the organization's capacity to adjust its structure, roles, and processes when the environment demands it. The passage explicitly says organizing "allows a business enterprise to accommodate changes" and that the structure can be "suitably modified" for a "smooth transition." This is a direct match: organizing is being praised for making the organization adaptable and responsive, not rigid.

   Tip

   When a question quotes a passage and asks which point of importance is highlighted, look for the dominant theme in the language used — here, "accommodate changes," "modified," and "smooth transition" all signal flexibility and responsiveness, which is adaptation to change.

   ✓Final answer

   The correct option is (D) Adaptation to change.

9. CBSE 2025Set ANNUAL1 markMCQ
   Q.The organisational steps are (A) 2 (B) 4 (C) 6 (D) 8

   ›Reveal solutionSolution

   The organising process has 4 steps — option (B).

   In Business Studies, organising is treated as a process made up of four clear steps:

   1. Identification and division of work — the total work is divided into manageable activities to avoid duplication.
   2. Departmentalisation — similar activities are grouped together into departments or units.
   3. Assignment of duties — each department's work is allotted to employees according to their competence.
   4. Establishing reporting relationships — the superior–subordinate links are fixed so everyone knows whom to report to and who reports to them.

   These four steps convert a plan into a working structure, which is why the answer is four. This is a standard BSEB Inter (Bihar Class 12) Business Studies fact, consistent with the NCERT/CBSE treatment of the Organising chapter.

   ✓Final answer

   (B) 4 — the four steps are division of work, departmentalisation, assignment of duties and establishing reporting relationships.

10. CBSE 2025Set ANNUAL1 markMCQ
    Q.The first step of organising process is - A) Departmentalisation B) Identification and division of work C) Reporting D) Assignment of duties

    ›Reveal solutionSolution

    The organising process starts with identification and division of work.

    The organising process has a definite sequence: (1) identification and division of work, (2) departmentalisation, (3) assignment of duties, and (4) establishing reporting relationships. The very first step is to identify the total work to be done and split it into smaller, manageable activities so duties can later be assigned.

    Departmentalisation, assignment of duties and reporting all come after this first step.

    ✓Final answer

    B) Identification and division of work

11. CBSE 2025Set ANNUAL1 mark
    Q.Mention the meaning of 'organisation'.

    ›Reveal solutionSolution

    Organisation is the structure of grouped activities, assigned duties and authority relationships set up to achieve goals.

    'Organisation' refers to the framework of relationships that results from organising. It involves identifying and grouping the activities to be performed, assigning duties to individuals, and establishing authority-responsibility relationships among them, so that people can work together systematically towards common objectives.

    ✓Final answer

    Organisation is the deliberate arrangement of grouped activities, assigned duties and clear authority relationships to accomplish the goals of the enterprise.

12. CBSE 2025Set ANNUAL1 markMCQ
    Q.The process of dividing the work into manageable activities and grouping them based on their nature is ..................

    (a) Departmentalisation

    (b) Identification and division of work

    (c) Assignment of duties

    (d) Establishing authority and responsibility relationship

    ›Reveal solutionSolution

    Dividing work into manageable activities and then grouping those activities by their nature is called Departmentalisation.

    The organising process has four broad steps:

    1. Identification and division of work — the total work is broken down into smaller, manageable activities so no single individual is overburdened and duties can be clearly assigned.
    2. Departmentalisation — once work is divided into activities, similar and related activities are grouped together on the basis of their nature (e.g., all selling-related activities form the marketing department, all production activities form the production department). This groups work into logical units for better coordination and specialised handling.
    3. Assignment of duties — each individual/group is given a specific task matching their capability.
    4. Establishing reporting relationships — authority and responsibility relationships are defined so everyone knows whom to report to.

    Because the question specifically describes both "dividing work into manageable activities" AND "grouping them based on their nature," it is describing the departmentalisation step of organising, which groups the divided activities into departments.

    ✓Final answer

    Departmentalisation.