CUET UG Business Studies Booster Test 2 Meaning and Concept of Organising -

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CUET UG Business Studies Test 2 Meaning and Concept of Organising

⏱️ 30 Minutes

❓ 20 Questions

📌 Answers are locked once submitted — results and explanations appear at the end.

CUET UG Business Studies Test 2 Meaning and Concept of Organising

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QUESTION 1 OF 20

According to Theo Haimman, organising is the process of defining and grouping the activities of the enterprise and establishing:

Answer Review

1 According to Theo Haimman, organising is the process of defining and grouping the activities of the enterprise and establishing:

A Interpersonal relationships

B Authority relationships among them

C External business networks

D Informal communications

💡 Short Explanation

Haimman's definition focuses on the formal structure. Grouping activities is only half the process; the other half is defining who has power over whom. It emphasizes the hierarchical nature of organizing.

✅ Correct Answer Explanation

Theo Haimman defines organizing as the process of defining and grouping activities and establishing "authority relationships" among them. In management theory, organizing isn't just about dividing work; it's about creating a chain of command. By establishing these relationships, an organization ensures that every grouped activity has a designated leader and that there is a clear flow of responsibility from the top to the bottom of the enterprise.

❓ Why Other Options Are Incorrect

Option A → While interpersonal relationships exist, they are spontaneous and part of "Directing" or informal groups, not the core definition of the organizing process.
Option C → External networks involve outside stakeholders (suppliers, etc.), whereas organizing is primarily an internal management function.
Option D → Informal communication is part of the "Informal Organisation," while Haimman's definition pertains to the formal, planned process of management.

🎯 Strategy

Used: Contextual/Tonal Matching

Application: The terms "defining" and "grouping" are formal management actions; they naturally pair with "Authority relationships" which is a formal structural term.

Final Logic: Organizing is structurally focused, making "Authority" the key missing component in the definition.

🧠 Memory Trick

Haimman = Hierarchy & Authority.

📚 Class XII – Business Studies – Chapter: Organising – Topic: Meaning

2 Consider the following statement: "For planning to be fruitful, a number of considerations like translating work into attainable tasks and empowering the workforce need to be dealt with." This primarily highlights organising as:

A The creation of informal groups

B The initiation of the implementation of plans

C A substitute for decision making

D A method to centralise authority

💡 Short Explanation

Planning is just an idea until organizing begins. Translating work into tasks is the first step of action. Organizing bridges the gap between "thinking" and "doing."

✅ Correct Answer Explanation

As per NCERT, organizing is the function that "initiates the implementation of plans." The statement mentions "translating work into attainable tasks," which is exactly what happens during the identification and division of work in the organizing process. Without this step, plans remain abstract goals. Organizing provides the framework and the empowered workforce (through delegation) to turn those goals into reality.

❓ Why Other Options Are Incorrect

Option A → Organizing creates formal structures; informal groups are a byproduct, not the primary highlight of implementing plans.
Option C → Organizing is a function that follows decision-making; it cannot substitute the mental act of choosing a course of action.
Option D → Organizing often leads to decentralization (delegation) rather than just being a tool for centralization.

🎯 Strategy

Used: Contextual/Tonal Matching

Application: "Fruitful planning" implies a need for action; "Initiation of implementation" is the direct management term for starting that action.

Final Logic: Organizing is the "action" phase that makes the "thinking" phase (planning) successful.

🧠 Memory Trick

Organizing = Operationalizing the Plan.

📚 Class XII – Business Studies – Chapter: Organising – Topic: Meaning

3 Which of the following is NOT true regarding the coordination of human efforts in organising?

A It removes ambiguity in the performance of duties.

B It establishes relationships for productive cooperation.

C It allows personnel to decide to do work entirely in their own uncoordinated way.

D It helps in creating a hierarchical order.

💡 Short Explanation

Organizing is about synchronization, not isolation. "Uncoordinated" work leads to chaos and duplication. The function aims for unity of action.

✅ Correct Answer Explanation

The organizing function is built on the principle of coordination. If personnel were allowed to work in an "uncoordinated way," it would lead to mass confusion, overlapping of work, and wastage of resources. Organizing specifically prevents this by defining roles and establishing reporting relationships to ensure everyone works toward a common goal.

❓ Why Other Options Are Incorrect

Option A → This is true; clear job descriptions remove ambiguity.
Option B → This is true; organizing defines how people interact to cooperate productively.
Option D → This is true; establishing authority creates the hierarchy (scalar chain).

🎯 Strategy

Used: Extreme Word Filter

Application: Words like "entirely in their own uncoordinated way" signify chaos, which is the exact opposite of what a management function (Organising) aims to achieve.

Final Logic: Management exists to coordinate, so "uncoordinated" is the logical outlier.

🧠 Memory Trick

Organizing = Order; Option C = Chaos.

📚 Class XII – Business Studies – Chapter: Organising – Topic: Meaning

4 Match the elements of coordination in organising to their correct impact:

List 1	List 2
1. Establishment of working relationships	A. Prevents overlapping and wastage of resources
2. Systematic allocation of jobs	B. Clarifies lines of communication and reporting
3. Grouping similar activities	C. Leads to occupational specialisation
4. Proper assignment of jobs	D. Facilitates specialisation through departmentalisation

A 1-B, 2-C, 3-D, 4-A

B 1-A, 2-D, 3-C, 4-B

C 1-C, 2-A, 3-B, 4-D

D 1-D, 2-B, 3-A, 4-C

💡 Short Explanation

Relationships = Communication/Reporting (1-B). Allocation = Occupational Specialisation (2-C). Grouping = Departmentalisation (3-D). Assignment = No overlapping/Wastage (4-A).

✅ Correct Answer Explanation

This matching exercise tests the benefits/impacts of the organizing process: 1. Working Relationships: Defines who reports to whom, clarifying communication (B). 2. Systematic Allocation: Dividing work so individuals focus on specific tasks leads to skill-based specialisation (C). 3. Grouping (Departmentalisation): Combining similar tasks into departments facilitates focused specialisation (D). 4. Assignment of Jobs: Ensuring the right person has the right job avoids two people doing the same thing, saving resources (A).

❓ Why Other Options Are Incorrect

Options B, C, and D → These misalign the functional steps with their logical outcomes (e.g., matching grouping with resource wastage instead of departmentalisation).

🎯 Strategy

Used: Elimination

Application: Identify the easiest match first: "Grouping" always leads to "Departmentalisation" (3-D). This immediately points to Option A as the only candidate.

Final Logic: Step-by-step pairing of management actions with their specific NCERT-defined results.

🧠 Memory Trick

Group = Department; Relationships = Communication.

📚 Class XII – Business Studies – Chapter: Organising – Topic: Importance of Organising

5 Assertion (A): Organising earns due importance because it ensures that resources are used optimally to achieve goals. Reason (R): Organising only focuses on the financial resources of an enterprise, ignoring human efforts.

A Both (A) and (R) are true, and (R) is the correct explanation of (A)

B Both (A) and (R) are true, but (R) is not the correct explanation of (A)

C (A) is true, but (R) is false

D (A) is false, but (R) is true

💡 Short Explanation

Assertion is true: Optimal use of resources is a key benefit. Reason is false: Organizing integrates human efforts with all resources. "Only" is an extreme and incorrect word in Reason.

✅ Correct Answer Explanation

The Assertion is a fact: Organizing leads to the "optimum utilization of resources" by avoiding duplication of work. However, the Reason is incorrect because Organizing is deeply concerned with "human efforts." In fact, it specifically identifies and groups human tasks and establishes relationships between personnel. It does not "ignore" humans; it integrates them with physical and financial resources.

❓ Why Other Options Are Incorrect

Option A & B → These are wrong because (R) is factually incorrect.

Option D → This is wrong because (A) is a perfectly valid statement regarding the importance of organizing.

🎯 Strategy

Used: Extreme Word Filter

Application: The word "only" in Reason (R) is a red flag. Management functions are comprehensive and rarely focus "only" on one type of resource while ignoring another.

Final Logic: A management function cannot ignore the people who perform it.

🧠 Memory Trick

Organizing = Humans + Money + Material.

📚 Class XII – Business Studies – Chapter: Organising – Topic: Importance of Organising

6 When an organisation aligns its structure so that specific workers perform specific jobs on a regular basis, gaining experience, it leads to:

A Centralisation

B Specialisation

C Informal communication

D Functional empires

💡 Short Explanation

Repeated performance of a task builds skill. Division of work is the base of specialization. Efficiency increases as experience grows.

✅ Correct Answer Explanation

Organizing involves the division of work into manageable tasks. When a specific worker is assigned a specific task "on a regular basis," they become an expert in that narrow field. This is the definition of "Specialisation." It reduces errors, increases speed, and leads to "Occupational Specialisation," which is a primary benefit of the organizing process.

❓ Why Other Options Are Incorrect

Option A → Centralization is about where decisions are made (at the top), not how tasks are performed.
Option C → Informal communication is a social aspect, not a result of repetitive job alignment.
Option D → Functional empires are a negative result of over-departmentalisation where managers prioritize their own units over the organization; it's not the positive "experience-based" outcome described.

🎯 Strategy

Used: Contextual Matching

Application: "Specific workers... specific jobs... regular basis" is the textbook description of the Division of Labour leading to Specialisation.

Final Logic: Repetition + Focus = Specialisation.

🧠 Memory Trick

Practice makes Perfect; Specialisation makes Productive.

📚 Class XII – Business Studies – Chapter: Organising – Topic: Importance (Benefits of Specialisation)

7 Sunita opened a travel agency and divided the work into operations, sales, and administration, specifying the line of authority. This deliberate division of work on the basis of functions resulted in the creation of a:

A Matrix structure

B Formal organisation structure

C Divisive informal network

D Centralised monopoly

💡 Short Explanation

"Deliberate" division indicates a planned structure. Specifying "line of authority" is a formal act. This creates the official "blueprint" of the company.

✅ Correct Answer Explanation

Sunita is engaging in the formal process of management. By dividing work into clear functions (Sales, Ops, Admin) and defining who reports to whom (Line of Authority), she is creating a "Formal organisation structure." This structure is intentionally designed by management to achieve specific goals and clarify responsibilities.

❓ Why Other Options Are Incorrect

Option A → A matrix structure involves dual reporting (functional + project), which is not mentioned here.
Option C → An informal network is spontaneous and not "deliberately divided" by a founder.
Option D → A "centralised monopoly" is an economic/market term, not a type of internal organizational structure.

🎯 Strategy

Used: Contextual Matching

Application: "Deliberate division" and "specifying authority" are the two hallmarks of a Formal Organisation.

Final Logic: A planned structure with clear lines is always "Formal."

🧠 Memory Trick

Formal = Formally Planned.

📚 Class XII – Business Studies – Chapter: Organising – Topic: Formal and Informal Organisation

8 The framework within which managerial and operating tasks are performed specifies the relationships between people, work, and resources. This framework is visually shown in a:

A Division ledger

B Planning statement

C Financial balance sheet

D Organisation chart

💡 Short Explanation

The "framework" is the organizational structure. Structure is a spatial concept. A chart is the standard visual tool for showing hierarchy.

✅ Correct Answer Explanation

The "Organisational Structure" is the framework described. In management, the visual representation of this structure—showing the various positions, departments, and the flow of authority—is called an "Organisation chart." It allows employees and managers to see at a glance where they fit in the "unified whole."

❓ Why Other Options Are Incorrect

Option A → A ledger is an accounting tool for recording transactions.
Option B → A planning statement describes goals and strategies, not the internal structural relationships.
Option C → A balance sheet shows assets and liabilities, not people and reporting relationships.

🎯 Strategy

Used: Dimensional/Unit Analysis

Application: The question asks for a "visual framework" of "relationships/people." A chart is the only option that matches a visual relationship map.

Final Logic: Structure is a map; a chart is the drawing of that map.

🧠 Memory Trick

Chart shows the Chain of Command.

📚 Class XII – Business Studies – Chapter: Organising – Topic: Organisational Structure

📄 Passage

Read the following passage and answer Q9 and Q10: "Suppose twelve students work for the school library in the summer vacations. One afternoon they are told to unload a shipment of new releases, stock the bookshelves, and then dispose of all waste (packaging, paper etc). If all the students decide to do it in their own way, it will result in mass confusion. However, if one student supervises the work by grouping students, dividing the work, assigning each group their quota and developing reporting relationships among them, the job will be done faster and in a better manner."

In the passage, grouping students and dividing the work helps avoid mass confusion. This represents which initial step of the organising process?

A Decentralisation

B Establishing authority

C Identification and division of work

D Performance measurement

💡 Short Explanation

The very first thing done was "dividing the work." This prevents "mass confusion" by giving everyone a specific task. It is the foundation of the whole process.

✅ Correct Answer Explanation

In the library example, the supervisor first identifies what needs to be done (unload, stock, dispose) and then divides these tasks among the students. This is the definition of the first step in the organizing process: "Identification and division of work." By ensuring no one is doing the same thing and that all work is covered, confusion is avoided.

❓ Why Other Options Are Incorrect

Option A → Decentralization is a policy choice about decision-making power, not the act of dividing labor.
Option B → Establishing authority is a later step (the 4th step) in the process.
Option D → Performance measurement is part of "Controlling," not the organizing process.

🎯 Strategy

Used: Contextual Matching

Application: The passage explicitly mentions "dividing the work," which perfectly matches the title of the first NCERT step.

Final Logic: First step = Find the work + Divide the work.

🧠 Memory Trick

Identify then Divide (I.D. the work).

📚 Class XII – Business Studies – Chapter: Organising – Topic: Steps in the Process of Organising

📄 Passage

By assigning each group their quota and developing reporting relationships among the 12 students, the supervisor is effectively:

A Eliminating the need for planning

B Forming an informal organisation

C Allocating activities and establishing an authority structure

D Centralising all physical labor to himself

💡 Short Explanation

"Assigning quota" = Allocating activities. "Reporting relationships" = Authority structure. This completes the transition from a group of people to an organized team.

✅ Correct Answer Explanation

Assigning "quotas" is part of the 'Assignment of Duties' step, and "developing reporting relationships" is the final step of the organizing process. Together, these actions create a formal "Authority Structure." It ensures that everyone knows their specific responsibility and who they need to talk to for guidance or reporting, turning a chaotic shipment unloading into a structured operation.

❓ Why Other Options Are Incorrect

Option A → Organizing implements planning; it doesn't eliminate the need for it.
Option B → This is a deliberate, supervised act, which makes it "Formal," not "Informal."
Option D → The supervisor is distributing labor (delegating), not doing it all himself.

🎯 Strategy

Used: Contextual/Tonal Matching

Application: "Reporting relationships" is a technical term that directly equates to an "Authority structure."

Final Logic: Structure is built by giving tasks and setting bosses.

🧠 Memory Trick

Quota + Reporting = Quite Rorganized.

📚 MCQ Analysis: Questions 11–20

11 Arrange the following concepts of Authority Clarity in the logical downward flow of the delegation process:
I. Creation of Accountability
II. Granting of Authority
III. Entrustment of Responsibility

A II, III, I

B III, II, I

C I, II, III

D II, I, III

💡 Short Explanation

First, you give someone a task (Responsibility). Second, you give them the power to do it (Authority). Third, they become answerable for the result (Accountability).

✅ Correct Answer Explanation

In the delegation process (part of Organising), the flow is strictly logical: 1. Responsibility (III): A superior assigns a task to a subordinate. Responsibility flows upward, but the entrustment moves downward. 2. Authority (II): To fulfill that responsibility, the subordinate must be given the power to use resources and make decisions. 3. Accountability (I): Once the task is assigned and power is given, the subordinate is now answerable for the final outcome. This is the "Creation of Accountability."

❓ Why Other Options Are Incorrect

Option A, C, and D → These sequences are illogical in a management context. You cannot hold someone accountable (I) before giving them a task (III) or the power (II) to do it.

🎯 Strategy

Used: Logical Sequencing

Application: Accountability is always the end result of the delegation process. Therefore, 'I' must be the last item. This leaves only Options A and B. Between A and B, Responsibility must precede Authority because you give power for a specific task.

Final Logic: Task first, Power second, Answerability last.

🧠 Memory Trick

R.A.A. (Responsibility, Authority, Accountability).

📚 Class XII – Business Studies – Chapter: Organising – Topic: Elements of Delegation

12 What clarifies who has to report to whom, thereby removing ambiguity in the transfer of information and instructions?

A Span of management

B Establishment of working relationships

C Informal organisation

D Decentralisation

💡 Short Explanation

Reporting lines = Working relationships. Removes "Who is my boss?" confusion. Enables the flow of instructions (Scalar Chain).

✅ Correct Answer Explanation

According to NCERT, the final step in the organizing process is the "Establishment of reporting relationships." This step specifically "clarifies who has to report to whom." By doing so, it creates a clear chain of command, which removes "ambiguity" in communication. Everyone knows where to get instructions and where to send reports.

❓ Why Other Options Are Incorrect

Option A → Span of management refers to the number of subordinates, not the clarity of reporting lines.
Option C → Informal organizations often increase ambiguity through rumors and lack of official lines.
Option D → Decentralization is about the distribution of decision-making, not the fundamental definition of a reporting line.

🎯 Strategy

Used: Contextual Matching

Application: The phrase "report to whom" in the question is the exact definition used in NCERT for "Establishing reporting/working relationships."

Final Logic: Relationships = Reporting.

🧠 Memory Trick

Relationships = Reporting lines.

📚 Class XII – Business Studies – Chapter: Organising – Topic: Steps in the Process of Organising

13 If an enterprise fails to assign jobs properly, overlapping of work occurs. Organising solves this by ensuring:

A Complete centralisation

B Proper usage of material, financial, and human resources

C Group loyalties take precedence

D Abandoning the formal structure

💡 Short Explanation

Overlapping = Wastage. Proper assignment = No wastage. This leads to "Optimum Utilization."

✅ Correct Answer Explanation

Proper assignment of jobs is a core benefit of organizing. When every job is assigned correctly, there is no duplication (overlapping). This leads to the "optimum utilization of resources," which includes material, financial, and human resources. By ensuring everyone has a unique role, the company gets the most out of every asset it owns.

❓ Why Other Options Are Incorrect

Option A → Centralization doesn't necessarily stop overlapping; clear division of work does.
Option C → Group loyalties over organizational goals is actually a problem (Functional Empire), not a solution.
Option D → Abandoning the formal structure would lead to more overlapping and chaos.

🎯 Strategy

Used: Contextual Matching

Application: "Overlapping" is a resource wastage problem; the "Proper usage of resources" is its direct logical solution.

Final Logic: Proper Organizing = No Overlap = Best Resource Use.

🧠 Memory Trick

Organizing stops Overlapping.

📚 Class XII – Business Studies – Chapter: Organising – Topic: Importance of Organising

14 Which of the following is NOT a benefit of the optimum utilisation of resources achieved through proper organising?

A Preventing confusion

B Minimising wastage of efforts

C Encouraging duplication of work

D Avoidance of overlapping of tasks

💡 Short Explanation

Management wants to prevent duplication. "Encouraging" duplication is a negative outcome. The question asks for "NOT a benefit."

✅ Correct Answer Explanation

Duplication of work is a major source of inefficiency. Organizing aims to eliminate duplication by clearly dividing tasks. Therefore, "encouraging duplication" is the opposite of a benefit; it is a failure of management. All other options (A, B, D) are positive outcomes of effective organizing.

❓ Why Other Options Are Incorrect

Option A → Preventing confusion is a benefit.
Option B → Minimizing wastage is a benefit.
Option D → Avoiding overlapping is a benefit.

🎯 Strategy

Used: Odd One Out

Application: Options A, B, and D are all positive management outcomes. Option C is a negative outcome.

Final Logic: Since three are good and one is bad, the "bad" one is the answer for a "NOT a benefit" question.

🧠 Memory Trick

Duplicate = Danger.

📚 Class XII – Business Studies – Chapter: Organising – Topic: Importance of Organising

15 An enterprise groups activities based on products (e.g., cosmetics, clothing) and places them under autonomous divisional heads. This allows people within the division to work collectively for a common product goal. This describes a:

A Functional structure

B Divisional structure

C Informal structure

D Centralised structure

💡 Short Explanation

Grouping by Product = Divisional Structure. Grouping by Function = Functional Structure. "Divisional heads" is a literal giveaway.

✅ Correct Answer Explanation

In a "Divisional Structure," the organization is divided into separate business units or divisions based on products, geography, or customers. Each division (like Cosmetics or Clothing) has its own resources (production, sales, finance) and is headed by a divisional manager. This allows the whole division to focus on the success of that specific product line.

❓ Why Other Options Are Incorrect

Option A → A functional structure groups by tasks (Production, Marketing) across the whole company, not by specific products.
Option C → An informal structure is not planned or based on product lines.
Option D → While divisions have heads, this describes a specific type of structure, not just the concept of centralization.

🎯 Strategy

Used: Contextual Matching

Application: The keyword "products" is the defining characteristic of a Divisional Structure in NCERT.

Final Logic: Product-based grouping = Divisional.

🧠 Memory Trick

Product = Part (Division).

📚 Class XII – Business Studies – Chapter: Organising – Topic: Divisional Structure

16 Organising leads to productive cooperation. However, when pursuing departmental interests at the cost of organisational interests hinders interaction between departments, it is a disadvantage of which structure?

A Informal organisation

B Functional structure

C Network structure

D Decentralised structure

💡 Short Explanation

This is called "Functional Empire." Departments become isolated (Silos). They forget the overall company goal.

✅ Correct Answer Explanation

In a "Functional Structure," people are grouped by their expertise (e.g., all accountants in one department). A major disadvantage is that these departments may focus so much on their own goals that they ignore the "organisational interests." This makes coordination between different departments (like Production vs. Sales) very difficult, as each thinks only of its own "empire."

❓ Why Other Options Are Incorrect

Option A → Informal organizations are about social ties, not formal departmental interests.
Option C → Network structures are based on external partnerships.
Option D → Decentralization is a delegation style, not a specific structure that inherently creates these silos.

🎯 Strategy

Used: Contextual Matching

Application: The "pursuit of departmental interests" leading to "Functional Empires" is a specific textbook disadvantage of the Functional Structure.

Final Logic: Experts in one function often ignore other functions.

🧠 Memory Trick

Functional = Focused too much on one part.

📚 Class XII – Business Studies – Chapter: Organising – Topic: Functional Structure (Disadvantages)

17 Consider the following statement: "Organising stimulates creativity amongst the managers by allowing them to assign routine jobs to subordinates." This specifically supports the management objective of:

A Development of personnel

B Expansion and growth

C Optimum utilisation of resources

D Creating informal networks

💡 Short Explanation

Delegation = Giving tasks to others. Subordinates learn and grow (Development). Managers get time to be creative.

✅ Correct Answer Explanation

This statement highlights the "Development of personnel" through delegation. By assigning "routine jobs" to subordinates, the manager isn't just saving time; they are giving the subordinate a chance to handle responsibility and gain experience. Simultaneously, it allows the manager to focus on higher-level creative tasks, developing the skills of both the superior and the subordinate.

❓ Why Other Options Are Incorrect

Option B → While it helps growth, the primary focus of "assigning jobs to subordinates" is the human development aspect.
Option C → This is a byproduct, but "stimulating creativity" is a human development outcome.
Option D → This is an official formal process, not for creating informal networks.

🎯 Strategy

Used: Contextual Matching

Application: "Assigning to subordinates" is the definition of delegation, and the primary human benefit of delegation in NCERT is "Development of personnel."

Final Logic: Letting others work helps them grow.

🧠 Memory Trick

Delegation = Development.

📚 Class XII – Business Studies – Chapter: Organising – Topic: Importance of Delegation

18 By assigning routine jobs downward, managers get time to explore areas for growth and innovate. This execution support is achieved through:

A Complete centralisation

B Effective delegation

C Abandoning plans

D Avoiding accountability

💡 Short Explanation

"Assigning downward" = Delegation. It frees up top management time. This is the functional purpose of delegation.

✅ Correct Answer Explanation

Delegation is the act of transferring authority from a superior to a subordinate. "Effective delegation" allows a manager to pass off repetitive, daily tasks so they can focus on "innovation" and "growth." This is crucial for an organization's survival, as a manager bogged down in routine cannot lead a company into the future.

❓ Why Other Options Are Incorrect

Option A → Centralization would mean the manager does everything themselves, leaving no time for innovation.
Option C → You cannot innovate for the company if you abandon the plans.
Option D → Delegation involves creating accountability, not avoiding it.

🎯 Strategy

Used: Substitution

Application: Substitute "Assigning routine jobs downward" with its technical management synonym. The synonym is "Delegation."

Final Logic: Sharing work is the only way to save time for innovation.

🧠 Memory Trick

Delegate to Discover new ideas.

📚 Class XII – Business Studies – Chapter: Organising – Topic: Importance of Delegation

19 Organising provides stability to the enterprise so that it can continue to survive and grow in spite of changes. This highlights the importance of:

A Rigidity in structure

B Adaptation to change

C Functional empires

D Eliminating divisions

💡 Short Explanation

Environment is dynamic. Organizing allows the structure to shift. This flexibility leads to stability.

✅ Correct Answer Explanation

A major importance of organizing is "Adaptation to change." Because the organizing process allows a business to modify its structure and re-assign roles, the enterprise can stay stable even when the external world changes. It ensures the business is "fit for purpose" regardless of market shifts.

❓ Why Other Options Are Incorrect

Option A → Rigidity causes a company to break when things change; flexibility (adaptation) is what provides stability.
Option C → Functional empires are a negative disadvantage, not a source of stability.
Option D → Growing often requires adding divisions, not eliminating them.

🎯 Strategy

Used: Tonal Matching

Application: "Survive in spite of changes" is a positive survival trait. "Adaptation" is the only matching positive management trait among the options.

Final Logic: To survive change, you must adapt to it.

🧠 Memory Trick

Survive = Shift (Adapt).

📚 Class XII – Business Studies – Chapter: Organising – Topic: Importance of Organising

20 As an organisation grows and faces environmental changes, coordination becomes difficult due to the emergence of new functions. What must management pay attention to in order to functionally adapt?

A Its organisation structure

B Creating rumours

C Reducing specialisation

D Limiting customer base

💡 Short Explanation

Growth = Complexity. Complexity requires a better "skeleton" (Structure). Structure must be adjusted to keep functions coordinated.

✅ Correct Answer Explanation

Whenever a company adds new functions (like moving from a single product to ten products), the old way of working won't hold up. Management must pay close attention to the "Organisation structure" to ensure it can support these new functions. If the structure is weak, coordination will fail and the business will collapse under its own weight.

❓ Why Other Options Are Incorrect

Option B → Rumours are destructive and have nothing to do with functional adaptation.
Option C → Growth usually requires increasing specialization to handle complexity.
Option D → Limiting the customer base is a retreat, not an adaptation for growth.

🎯 Strategy

Used: Contextual Matching

Application: The "skeleton" that holds "functions" together is the "Structure." If functions are failing, the structure is usually the problem.

Final Logic: Growth demands a stronger structure.

🧠 Memory Trick

Big Body = Big Structure.

📚 Class XII – Business Studies – Chapter: Organising – Topic: Organisational Structure / Importance

CUET UG Business Studies Test 2 Meaning and Concept of Organising

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