Organising: Principles, Delegation, Authority–Responsibility, and Span of Control Questions

Question 1

Define organising.

Accepted Answer

Organising is the process of identifying and grouping activities, assigning duties and establishing authority relationships so that organisational objectives can be achieved.

Question 2

What is delegation of authority?

Accepted Answer

Delegation of authority is the process by which a manager assigns responsibility to a subordinate and grants necessary authority to perform the work, while the manager remains ultimately accountable.

Question 3

State the meaning of span of control.

Accepted Answer

Span of control refers to the number of subordinates that a manager can effectively supervise and control.

Question 4

What is meant by departmentation?

Accepted Answer

Departmentation is the process of grouping similar and related activities into departments for effective coordination and control.

Question 5

What is accountability?

Accepted Answer

Accountability is the obligation to answer for the results of assigned work and the use of authority.

Question 6

State one difference between centralisation and decentralisation.

Accepted Answer

In centralisation, decision-making authority is concentrated at the top level, whereas in decentralisation authority is systematically delegated to lower levels.

Question 7

Explain the steps in organising process.

Accepted Answer

The organising process involves: **(i) identifying activities** required to achieve objectives, **(ii) grouping related activities** into departments (departmentation), **(iii) assigning duties** to individuals according to ability and specialization, and **(iv) establishing authority relationships** by defining reporting lines, delegation and coordination mechanisms so that activities are integrated.

Question 8

Differentiate between formal and informal organisation.

Accepted Answer

**Formal organisation** is the officially designed structure with defined roles, authority and rules created by management to achieve objectives. **Informal organisation** is a natural network of personal and social relationships among employees, not created by management. Formal organisation supports coordination and control through authority; informal organisation supports communication and morale but may also create rumours and group pressure.

Question 9

Explain the relationship between authority, responsibility and accountability.

Accepted Answer

**Authority** is the right to command and take decisions, **responsibility** is the duty to perform assigned work, and **accountability** is answerability for results. Responsibility should be supported by adequate authority; otherwise performance suffers. Accountability ultimately remains with the person who delegates, because a superior is answerable for the work assigned to subordinates.

Question 10

Explain the importance of delegation of authority.

Accepted Answer

Delegation reduces the workload of managers and allows them to focus on important tasks. It develops subordinates by giving them experience and responsibility, improves motivation and morale through trust, and enables quick decisions at lower levels. Delegation also supports organisational growth by creating a strong chain of managers for future expansion.

Question 11

Explain types of departmentation.

Accepted Answer

Departmentation may be **functional** (production, marketing, finance), **product-based** (separate divisions for each product line), **geographical** (regions like North/South), **customer-based** (retail, corporate, government), and **process-based** (stages like spinning, weaving, finishing). The selection depends on nature of business, size and market requirements.

Question 12

Explain factors affecting span of control.

Accepted Answer

Span of control depends on the **nature of work** (routine work allows wider span), **ability of manager and subordinates** (skilled employees need less supervision), **degree of decentralisation and delegation** (more delegation allows wider span), **communication and control systems** (better systems allow wider span), and **geographical dispersion** (dispersion reduces effective supervision and narrows span).

Question 13

Explain delegation of authority. Discuss its elements and barriers to effective delegation.

Accepted Answer

Delegation of authority is the process by which a superior assigns work to a subordinate and grants the necessary authority to perform it, while the superior remains ultimately accountable for results. Delegation is essential for smooth functioning and growth because one manager cannot perform all tasks alone.

**Elements of delegation:** (1) **Assignment of responsibility**—the subordinate is given a definite task and expected results. (2) **Granting of authority**—the subordinate is given the power to take decisions and use resources needed to perform the task. (3) **Creating accountability**—the subordinate is answerable for performance, but final accountability remains with the superior who delegated.

**Barriers to effective delegation:** From the manager's side, barriers include fear of losing importance/control, lack of confidence in subordinates, fear of mistakes and the attitude “I can do it better myself.” From the subordinate's side, barriers include lack of confidence, fear of failure or criticism and unwillingness to accept additional responsibility. Organisational barriers include unclear policies, over-centralisation, poor communication and weak control and reporting systems. Removing these barriers through clarity, training, trust and proper feedback makes delegation effective.

Question 14

Explain departmentation and discuss various bases of departmentation with merits and limitations (brief).

Accepted Answer

Departmentation is the process of grouping similar activities into departments so that work can be performed efficiently and coordination becomes easier. It helps in specialization, clear responsibility and effective control.

**Bases of departmentation:** (i) **Functional** (production, marketing, finance, HR): promotes expertise and economies of scale but may create departmental conflicts. (ii) **Product** (divisions for each product line): gives clear accountability for product performance and flexibility for diversification but is costlier due to duplication of functions. (iii) **Geographical** (regions): meets local needs and improves customer service in different regions but may reduce uniformity and control. (iv) **Customer** (retail/corporate etc.): focuses on customer needs but may duplicate resources. (v) **Process** (stages of production): suitable for manufacturing but may create coordination issues between processes.

Thus, the best base depends on organisational size, product range, market spread and control requirements.

Question 15

Explain span of control. Distinguish between narrow and wide span and state factors affecting span of control.

Accepted Answer

Span of control refers to the number of subordinates that a manager can effectively supervise. It influences the number of levels in an organisation and therefore affects communication, cost and control.

**Narrow span** means a manager supervises few subordinates, resulting in a **tall organisation** with more managerial levels. It provides close supervision and control, but increases cost, delays decisions and may distort communication due to many levels.

**Wide span** means a manager supervises many subordinates, resulting in a **flat organisation** with fewer levels. It is economical and speeds up communication, but if the span becomes too wide, supervision may weaken and control may suffer.

**Factors affecting span:** nature and complexity of work, ability of manager and subordinates, degree of delegation and decentralisation, effectiveness of communication and control systems, geographical dispersion and the level of management. A proper span should balance effective supervision with economy and speed.

Organising: Principles, Delegation, Authority–Responsibility, and Span of Control

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