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    Question

    A company restructures its operations from an activity

    based system to geography based departments. It defines reporting relationships and authority of department heads. It is left to them to further look at the manpower requirement. This set of activities mainly represents:
    A Staffing Correct Answer Incorrect Answer
    B Planning Correct Answer Incorrect Answer
    C Directing Correct Answer Incorrect Answer
    D Controlling Correct Answer Incorrect Answer
    E Organising Correct Answer Incorrect Answer

    Solution

    The activities described—restructuring operations into departments (departmentalisation), defining reporting relationships, and establishing authority—are the core components of the Organising function of management. According to management principles, organising is the process of identifying and grouping work, defining responsibility and authority, and establishing relationships to enable people to work effectively together. 

    • Departmentalisation: The transition from an "activity-based system" to "geography-based departments" is a classic example of creating a divisional or departmental structure.
    • Authority and Reporting: Establishing "reporting relationships and authority" is a specific step in the organising process designed to create a clear chain of command.
    • Structural Framework: Organising provides the framework (structure) within which an enterprise functions as an integrated unit. 
      Note - Staffing focuses on manning the structure (recruiting, selecting, and training people) rather than designing the structure itself. While the manpower requirements are mentioned, this is a subsequent task left to department heads after the organisational structure is already defined.

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