IGNOU FREE MMPH-001 Organisational Theory and Design Solved Guess Paper 2025

✅ Q1. Explain the meaning, nature and importance of Organisation.

Organisation refers to a structured group of people working together in a coordinated manner to achieve common goals. It is a system that integrates human, physical and financial resources through defined roles, responsibilities and authority relationships. The nature of organisation is goal-oriented, social, dynamic and continuous. It is goal-oriented because every organisation exists to achieve specific objectives such as profit, service or social welfare. It is social in nature because it involves interaction among individuals and groups. It is dynamic because it continuously adapts to environmental changes such as technology, competition and social expectations. It is a continuous process because organising is not a one-time activity but an ongoing managerial function. The importance of organisation in management is extremely high because it provides a framework for orderly functioning of activities. It facilitates division of work and specialisation which improves efficiency and productivity. It establishes authority-responsibility relationships and ensures unity of direction. Organisation promotes coordination among different departments and individuals. It helps in optimum utilisation of resources by avoiding duplication of efforts and wastage. It also facilitates training, development and performance evaluation of employees. A sound organisational structure improves communication and speeds up decision-making. In the absence of proper organisation, managerial planning cannot be effectively implemented and controlling becomes difficult. Therefore, organisation is the backbone of management and a key determinant of efficiency, stability and long-term success of any enterprise.

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✅ Q2. Explain the concept, features and types of Organisational Structure.

Organisational structure refers to the formal framework of authority, responsibility and relationships through which activities of an organisation are defined, grouped and coordinated. It represents how tasks are divided, how reporting relationships are established and how coordination is achieved among different units. The key features of organisational structure include division of work, hierarchy of authority, span of control, formal communication channels, responsibility centres and coordination mechanisms. A sound organisational structure promotes clarity in roles, avoids conflicts and improves accountability. There are several types of organisational structures. The functional structure groups activities based on common functions such as production, marketing, finance and HR. It promotes specialisation and efficiency but may create inter-departmental conflicts. The divisional structure groups activities based on products, regions or customers and is suitable for large diversified organisations. The line and staff structure combines line authority with specialist advisory support. The matrix structure combines functional and project structure and promotes flexibility and teamwork but may create dual authority problems. The importance of organisational structure lies in supporting strategic goals, improving efficiency, facilitating coordination and enhancing communication. An inappropriate structure results in confusion, delays, low morale and inefficiency. Therefore, organisational structure must be designed carefully based on size, strategy, environment and technology of the organisation.

✅ Q3. Discuss the concept and process of Organisational Design.

Organisational design refers to the process of creating and modifying the structure of an organisation in order to achieve strategic objectives efficiently. It involves deciding how tasks should be divided, how authority should be distributed, how coordination should be achieved and how communication should flow. Organisational design is a strategic activity because it directly influences performance, competitiveness and long-term survival. The process of organisational design begins with identification of organisational objectives and strategy. Next, key activities and tasks are identified and grouped into meaningful units. Authority and responsibility relationships are then established. Communication and coordination mechanisms are designed to ensure smooth functioning. Finally, the structure is reviewed and modified based on feedback and environmental changes. The factors influencing organisational design include organisational size, business strategy, technology, external environment and organisational culture. The importance of organisational design lies in aligning structure with strategy. Proper design improves efficiency, flexibility and innovation. It reduces conflicts and role ambiguity. It supports better decision-making and faster response to change. Poor organisational design leads to rigidity, inefficiency, communication gaps and resistance to change. Therefore, organisational design is a critical managerial responsibility that shapes organisational effectiveness and competitive advantage.

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✅ Q4. Explain the concept, objectives and techniques of Job Design.

Job design refers to the process of defining jobs in terms of tasks, responsibilities, duties and relationships in order to improve organisational performance and employee satisfaction. It focuses on how work is structured and performed. The main objectives of job design are to improve efficiency and productivity, enhance job satisfaction, reduce fatigue and boredom, improve motivation and ensure quality performance. Job design also helps in proper man-power planning and performance evaluation. There are various techniques of job design. Job simplification involves breaking down tasks into simple repetitive activities to improve efficiency but may cause monotony. Job rotation involves shifting employees from one job to another to reduce boredom and develop multiple skills. Job enlargement involves increasing the number of related tasks to make the job more meaningful. Job enrichment involves increasing the depth of a job by adding planning, controlling and decision-making responsibilities to motivate employees. The importance of job design is extremely high because poorly designed jobs lead to low morale, absenteeism, high turnover and low productivity. Well-designed jobs improve motivation, commitment and quality of work. Therefore, job design plays a vital role in human resource management, organisational effectiveness and long-term employee satisfaction.

✅ Q5. Discuss the Internal Dynamics of an Organisation.

Internal dynamics of an organisation refer to the behavioural and relational processes that operate within the organisation and influence its functioning. These include organisational culture, leadership, communication, motivation, power, conflict, group behaviour and interpersonal relationships. Organisational culture represents shared values, beliefs and norms that guide employee behaviour. Leadership influences direction, motivation and performance of employees. Communication determines how information flows and how decisions are implemented. Motivation drives employee performance and job satisfaction. Power and politics affect decision-making and resource allocation. Conflict is natural in organisations due to differences in goals, perceptions and interests and must be managed constructively. Group dynamics influence teamwork, cohesion and performance. The importance of internal dynamics lies in the fact that organisational success depends not only on structure and systems but also on human behaviour. Healthy internal dynamics promote cooperation, innovation, commitment and productivity. Poor internal dynamics lead to stress, dissatisfaction, conflicts and inefficiency. Effective management of internal dynamics requires strong leadership, open communication, fair reward systems and positive organisational culture. Therefore, internal dynamics form the behavioural foundation of organisational effectiveness and long-term success.

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✅ Q6. Explain the concept, importance and types of Departmentation.

Departmentation refers to the process of grouping organisational activities into separate units or departments so that work can be performed efficiently and objectives can be achieved in an organised manner. It is a fundamental step in organisational design through which tasks are divided on a logical basis and responsibility is assigned to different units. The importance of departmentation lies in facilitating specialisation, improving coordination, ensuring effective utilisation of resources and simplifying supervision and control. By grouping similar activities together, departmentation reduces duplication of efforts and promotes operational efficiency. It also helps in fixing accountability and responsibility clearly and improves communication flow within and across departments. Proper departmentation contributes to managerial effectiveness by creating manageable units and improving span of control. There are several types of departmentation commonly used in organisations. Functional departmentation is based on business functions such as production, marketing, finance and human resources and is suitable for small and medium organisations. Product departmentation groups activities on the basis of products or product lines and is suitable for diversified organisations. Geographical departmentation is based on regions or territories and is useful for firms operating in multiple locations. Customer departmentation is based on different types of customers such as retail, wholesale and institutional buyers. Process departmentation is based on stages of production or work processes. Each type has its own merits and limitations depending on size, strategy, technology and environment of the organisation. Improper departmentation leads to overlapping authority, communication gaps, conflicts and inefficiency. Therefore, departmentation is a critical element of organisational structure and plays a decisive role in operational efficiency, coordination and managerial effectiveness.

✅ Q7. Discuss Centralisation and Decentralisation in Organisational Design.

Centralisation and decentralisation refer to the extent to which decision-making authority is concentrated at the top level or distributed among lower levels of management. Centralisation means that decision-making power is retained by top management, while decentralisation means that authority is delegated to middle and lower-level managers. The choice between centralisation and decentralisation is a key issue in organisational design. Centralisation ensures uniformity in decisions, tight control, faster policy implementation and reduced risk of misuse of authority. It is suitable for small organisations and stable environments. However, excessive centralisation leads to delays in decisions, managerial overload, low initiative among employees and reduced managerial development. Decentralisation, on the other hand, improves speed of decision-making, managerial development, motivation and initiative among employees and better adaptation to local conditions. It also reduces the burden of top management and improves organisational flexibility. However, decentralisation may lead to lack of uniformity, coordination problems and higher administrative cost. The importance of centralisation and decentralisation lies in balancing control with flexibility. Factors influencing this decision include cost and importance of decisions, availability of trained managers, external environment, size of the organisation and management philosophy. Modern organisations generally adopt a balanced approach by centralising strategic decisions and decentralising operational decisions. Therefore, centralisation and decentralisation are important structural choices that determine organisational responsiveness, control, efficiency and growth potential.

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✅ Q8. Explain the concept and importance of Line and Staff Authority.

Line and staff authority refers to the relationship between managers who have direct responsibility for achieving organisational objectives and specialists who provide advisory support. Line authority is the direct authority that a manager exercises over subordinates to carry out work related to core organisational activities such as production and sales. Staff authority, on the other hand, is advisory in nature and is exercised by specialists such as HR managers, legal advisors, finance experts and quality analysts. The concept of line and staff authority helps in combining operational efficiency with expert guidance. The importance of line and staff authority lies in improving decision quality, operational efficiency and managerial effectiveness. Line managers benefit from expert advice, while staff specialists get the opportunity to apply their knowledge for organisational improvement. It promotes specialisation and professionalism in management. However, line and staff relationships often give rise to conflicts due to unclear authority, ego clashes and lack of mutual understanding. Line managers may feel threatened by staff interference, and staff managers may feel that their advice is ignored. Therefore, effective coordination, mutual respect and clearly defined roles are essential for harmonious functioning of line and staff authority. When properly designed and managed, line and staff authority strengthens organisational performance, improves quality of decisions and ensures smooth functioning of complex business operations.

✅ Q9. Discuss the importance of Organisational Culture in Internal Dynamics.

Organisational culture refers to the shared values, beliefs, norms, attitudes and patterns of behaviour that guide how employees think, feel and act within an organisation. It is an invisible but powerful force that shapes employee behaviour and organisational identity. The importance of organisational culture in internal dynamics is extremely high because it directly influences motivation, commitment, teamwork, leadership style, decision-making and performance. A strong positive culture promotes trust, cooperation, innovation and ethical behaviour among employees. It creates a sense of belonging and loyalty and reduces employee turnover. Culture also acts as a control mechanism by guiding behaviour without the need for formal rules. It shapes how employees respond to challenges, change and competition. A flexible and learning-oriented culture supports innovation and adaptability, while a rigid culture resists change and hampers growth. Organisational culture also affects external image and brand reputation. Customers and stakeholders are influenced by the values and work ethics of an organisation. However, a negative or toxic culture can lead to conflicts, stress, dissatisfaction, unethical practices and poor performance. Therefore, leaders must consciously shape and nurture a healthy organisational culture through transparent communication, fair practices, recognition, participation and value-based leadership. Thus, organisational culture is the behavioural backbone of internal dynamics and a critical driver of long-term organisational success.

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✅ Q10. Explain the role of Leadership and Motivation in Organisational Effectiveness.

Leadership and motivation are two fundamental human elements of organisational effectiveness and internal dynamics. Leadership refers to the ability of a manager to influence, guide and inspire employees to achieve organisational goals willingly and enthusiastically. A good leader provides vision, direction, confidence and support to employees and creates a positive work environment. Leadership style directly affects employee morale, performance, communication and commitment. Motivation refers to the internal drive that energises, directs and sustains human behaviour toward achievement of goals. Motivated employees work with dedication, creativity and responsibility. The importance of leadership and motivation lies in converting organisational resources into productive output. Effective leaders understand employee needs and use appropriate motivational tools such as financial incentives, recognition, career growth, job satisfaction and participation in decision-making. Leadership builds trust and confidence, while motivation builds enthusiasm and commitment. Together, they reduce employee turnover, absenteeism and conflicts. They promote teamwork, innovation and high performance. Poor leadership and weak motivation result in low morale, resistance to change and poor productivity. In today’s dynamic and competitive environment, organisations need leaders who can motivate diverse workforce and manage change effectively. Therefore, leadership and motivation play a decisive role in shaping internal dynamics, enhancing organisational effectiveness and ensuring long-term organisational success.

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