Organizing Questions and Answers [With PDF]

Opens your print window. Choose “Save as PDF”.

Once a plan is made, someone has to decide who does what, who reports to whom, and who has the authority to decide. That is organizing. This chapter covers the organizing process, authority and delegation, the main types of organization structure (line, line and staff, functional, matrix and committee), and formal and informal organizations. Here are 30 important questions with clear answers and comparison tables, ready for exams, vivas and interviews.

This is Chapter 4 of our Management course. It follows Planning and Decision-making and comes before Staffing.

Basics of Organizing

Q1. What is the difference between organizing and an organization?

Organizing is the management function (the process) of dividing the work, grouping it into jobs and departments, assigning duties, giving authority and setting the relationships among people. An organization is the result: a group of people working together in a structure to achieve common goals.

Q2. What is the importance of organizing?

It helps achieve the goals of the organization.
It uses resources efficiently.
It allows specialization through the division of work.
It makes coordination and control easier.
It encourages creativity.
It helps develop effective leaders.
It builds discipline.

Q3. What are the principles of organization?

Principle of goals (objectives)
Principle of efficiency
Principle of the optimum span of supervision
Scalar chain principle
Principle of defining specific responsibility
Unity of command
Principle of simplicity and clarity
Principle of specialization

Q4. What are the steps in the organizing process?

Classify the work into jobs and departments.
Define the authority and responsibility of each job.
Delegate authority and responsibility to the right people.
Establish the relationships between people and units.

Q5. What are the characteristics of a good organization?

It is built around the objectives.
It is simple and easy to understand.
It allows specialization.
Roles and responsibilities are clearly defined.
It is balanced and flexible.
It encourages discipline and loyalty.

Q6. What is organization structure?

The framework that shows the relationships among the individuals, departments and sub-divisions of an organization, who reports to whom, and how work and authority are divided.

Q7. What is an organization chart?

A diagram that shows the structure of an organization: its departments, positions and reporting lines. A simple example:

Level	Position	Reports to
Top	Managing Director	Board of Directors
Middle	Production, Marketing and Finance Managers	Managing Director
Lower	Supervisors in each department	Their department manager
Operating	Workers and clerks	Their supervisor

Q8. What is the span of management (span of control)?

The span of management is the number of subordinates who report directly to one manager. The optimum span is the number that the manager can supervise effectively at the lowest cost.

Narrow span	Wide span
Few subordinates per manager	Many subordinates per manager
Close supervision, more levels (a tall structure)	Looser supervision, fewer levels (a flat structure)
Higher management cost	Lower cost, but risk of weak control

A wider span suits skilled subordinates, simple repetitive work and capable managers. A narrower span suits complex work and less experienced staff.

Authority, Delegation and Centralization

Q9. What are authority, responsibility and accountability?

Term	Meaning
Authority	The right to give orders and take decisions. It flows downward.
Responsibility	The duty to do the assigned work. It flows upward.
Accountability	The obligation to answer for the results. It cannot be delegated.

Q10. What is delegation of authority?

Delegation is the process of a manager giving part of his authority and work to subordinates, so they can act on his behalf. The manager remains accountable for the results. It saves the manager’s time, develops subordinates and speeds up decisions. Steps: assign duties, grant authority and create accountability.

Q11. What is the difference between centralization and decentralization?

Point	Centralization	Decentralization
Decision-making	Concentrated at the top	Spread to lower levels
Speed	Slower for local issues	Faster for local issues
Control	Easier to keep uniform policy	Needs good coordination
Suits	Small firms and crisis situations	Large firms with several locations

Types of Organization Structure

Q12. What are the types of organization structure?

Line organization
Line and staff organization
Functional organization
Matrix organization
Committee organization

Q13. What is a line organization?

An organization in which authority flows in a single, direct, vertical line from the top to the bottom. Each person reports to one superior. It is the oldest and simplest form. Its main characteristics:

It is simple and easy to understand.
Each department is mostly self-contained.
Departments report to a general manager.
It suits small and simple organizations.

Q14. What are the advantages of a line organization?

Clear authority and responsibility.
Quick decisions and action.
Strict discipline.
Better efficiency of executives.
A clear path for promotion.
A stable and consistent structure.

Q15. What are the disadvantages of a line organization?

Lack of specialization.
A tendency toward autocratic decisions.
Heavy workload on executives.
Loss if a key executive is absent.
Coordination problems between departments.
Unsuitable for large and complex businesses.

Q16. What is a line and staff organization?

An organization in which authority still flows from top to bottom in a line, but specialist staff are added to advise and support the line managers. Line authority means the right to command. Staff authority means the right to advise and help. Example: a legal adviser or an HR specialist who supports the line managers but does not command their teams.

Q17. What are the advantages of a line and staff organization?

It reduces the burden on line executives.
Expert advice leads to better, less arbitrary decisions.
Problems are solved faster.
It combines the benefits of specialization.
It is more flexible than a pure line organization.
Better coordination and control.

Q18. What are the disadvantages of a line and staff organization?

Higher costs because of the extra staff.
Authority and responsibility may become unclear.
Line executives may ignore expert advice.
Conflict between line and staff people.
Slower decision-making.
Staff may lack real experience of operations.

Q19. What is a functional organization?

An organization in which work is divided by function, and each function is controlled by an expert who has functional authority over the matter in all departments. The idea comes from Taylor’s functional foremanship. A worker may therefore receive orders from several specialists.

Q20. What are the advantages of a functional organization?

Specialized knowledge is applied to each function.
Less chance of one person’s autocratic control.
Specialization and employee development.
More flexibility.
Easier control of each function.

Q21. What are the disadvantages of a functional organization?

It breaks the principle of unity of command, because a worker has more than one boss.
Workload for employees can increase.
The influence of line authority weakens.
People may avoid responsibility, and it is hard to fix blame.
Lack of self-control and coordination.
It suits only some kinds of work.

Q22. What is a matrix organization?

A structure that combines functional departments with project (or product) teams, so that employees report to two managers at the same time: a functional manager and a project manager.

Q23. What are the features of a matrix organization?

It mixes work-based (functional) and product-based (project) grouping.
Two managers work at once: the functional manager and the project manager.
The functional manager supplies people, tools and services as the project manager needs them.
Both managers are answerable to the general manager.

Q24. What are the advantages of a matrix organization?

Specialists are used efficiently across projects.
Better cooperation between departments.
Effective coordination of project work.
It relieves the chief executive of detailed supervision.
It combines technical expertise with project focus.

Q25. What are the disadvantages of a matrix organization?

Higher administrative costs.
Dual authority, so employees get two bosses.
It can cause conflict between the two managers.
Group decisions can be slow.
It is hard to change or reorganize.

Q26. What is a committee?

A committee is a group of people formed to discuss, advise or decide on a particular matter for the organization. Its nature:

It is a group of people working together.
Members are elected under the organization’s rules or nominated by superiors.
It can be permanent (a standing committee) or temporary.
It can serve many purposes, such as decision-making, advice or coordination.

Q27. What are the advantages of a committee?

Group discussion brings many ideas.
Better communication.
The interests of different groups are represented.
It increases cooperation.
It helps avoid hasty decisions.

Q28. What are the disadvantages of a committee?

Divided responsibility, so no one is fully answerable.
Slow decisions.
A tendency toward indecision.
Decisions may be a compromise rather than the best choice.
A strong member may push his own opinion.

Designing the Structure and Formal vs Informal Organization

Q29. What factors should be considered when designing an organization structure?

Objectives of the organization
Efficiency
Clarity (clear roles and relationships)
Specialization
Balance between the parts of the organization

Q30. What are formal and informal organizations?

Point	Formal organization	Informal organization
Basis	Rank and relationships set by the organization structure	Personal likes, friendships and shared interests
Created by	Management	Employees themselves
Communication	Through the scalar chain	Through personal contacts (the grapevine)
Recorded	Shown in the organization chart	Not shown in any chart

Quick Revision Points

Organizing is the process. An organization is the structure. Authority flows down and responsibility flows up.
Accountability cannot be delegated.
Line: single vertical line. Line and staff: line plus advisers. Functional: experts with functional authority. Matrix: two bosses. Committee: group decision.
Functional organization breaks unity of command. Matrix creates dual authority.
Span of management is the number of subordinates reporting directly to one manager.

Test yourself with the chapter quiz below, then continue to Staffing.