Division of Labour and Specialisation

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Questions and Answers

What is the result of grouping similar activities together in an organisation?

Specialisation

Division of work

Efficient training

Departmentalisation (correct)

What is the primary benefit of departmentalisation?

Improved efficiency

Simplified training

Better management (correct)

Increased output

Who is responsible for the effective functioning of a department?

The manager

Departmental members

The departmental head (correct)

The CEO

What is the primary role of a departmental head?

To ensure effective functioning of the department (A) Signup and view all the answers

What is the result of breaking down complex tasks into smaller units?

Facilitated training of less-skilled workers (B) Signup and view all the answers

What is the benefit of specialisation in an organisation?

Greater output (D) Signup and view all the answers

What is the role of departmentalisation in an organisation?

To group similar activities together (A) Signup and view all the answers

What is the purpose of assigning work to people with different skills and expertise?

To ensure effective functioning of departments (A) Signup and view all the answers

What is a result of delegating responsibility and authority to members of a department?

Clear relationships among superiors and subordinates (B) Signup and view all the answers

Why is co-ordination necessary among departments?

To resolve inter-departmental conflicts (C) Signup and view all the answers

What is the purpose of reviewing and re-organising?

To respond to changes in environmental factors (B) Signup and view all the answers

What is the term for dividing activities into specialized groups where each department performs a specialized organizational task?

Departmentation (C) Signup and view all the answers

What is the benefit of departmentation in an organization?

It promotes co-operation, coordination and effective communication (A) Signup and view all the answers

Why is organising important for top managers?

Because they can concentrate on strategic matters (D) Signup and view all the answers

What is a benefit of a well-organised institution?

It is adaptive to change and responsive to growth and diversification (D) Signup and view all the answers

What is the term for grouping all activities of similar nature in one unit, headed by a departmental manager?

Unity of Direction (B) Signup and view all the answers

What is the benefit of unity of direction in an organization?

It directs the efforts of departmental members towards a single objective (B) Signup and view all the answers

What is an element of organising that facilitates administration?

All of the above (D) Signup and view all the answers

What is a result of effective organisation?

Better administration and efficient operations (B) Signup and view all the answers

What is the opposite of decentralisation in an organization?

Centralisation (B) Signup and view all the answers

Why is departmentalisation important?

Because it enables effective administration and growth (A) Signup and view all the answers

What is the benefit of decentralisation in an organization?

It increases the decision-making authority of lower-level managers (B) Signup and view all the answers

What is the purpose of departmentalisation in an organisation?

To group activities of similar nature in one department (B) Signup and view all the answers

What is the result of departmentalisation in an organisation?

Promotes co-operation, coordination and effective communication (D) Signup and view all the answers

Study Notes

Benefits of Specialisation

Division of work leads to specialisation, resulting in greater output, as demonstrated by Adam Smith's study where 10 people produced 48,000 pins in a day compared to one person producing 20 pins alone.
Specialisation increases efficiency as workers perform the same task repeatedly, increasing their skill and efficiency.
Specialisation facilitates training of less-skilled workers by breaking down complex tasks into smaller units.

Departmentalisation

Departmentalisation is the grouping of activities into departments, such as sales, finance, and accounting, with each department headed by a person responsible for its effective functioning.
Departmental heads are appointed based on their skills and expertise, ensuring a balance between centralisation and decentralisation, and a suitable span of control.

Organisation Structure

The organisation structure should be flexible, adapting to changes in environmental factors.
The organisation should maintain continuity, adapting to environmental changes for its long-run survival, growth, and expansion.
The structure should be simple, allowing people to work efficiently and promoting co-operation, co-ordination, and effective communication.

Principles of Organisation

Exception: Only significant deviations should be reported up the hierarchy, while routine matters should be dealt with by middle and lower-level managers.
Decentralisation: Delegating authority to lowest-level managers increases decision-making authority and organisational efficiency.
Unity of Direction: All activities of similar nature are grouped in one unit, headed by a departmental manager, who directs efforts towards a single objective.
Co-Ordination of Activities: Departments work together to achieve organisational goals, resolving inter-departmental conflicts through co-ordination.

Importance of Organising

Organising facilitates administration by sharing workload with middle and lower-level managers, allowing top executives to concentrate on strategic matters.
A well-organised institution is adaptive to change and responsive to growth and diversification, enabling it to multiply its operations.