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Business Studies · 2026 · 6 marks

CBSE 2026 · Region 3 · Set 1 · Q32

‘Kia Tyres’ is a company manufacturing tyres for cars, two-wheelers,
trucks and buses. It has a well-defined organisational structure designed
by the management to facilitate smooth functioning of the organisation.
It specifies the relationships among various job positions and the nature
of their inter-relationship. It is easier to fix responsibility, since mutual
relationships are clearly defined. There is no ambiguity in the role that
each member has to play, as duties are specified. This also helps in
avoiding duplication of work. As a result, ‘Kia Tyres’ is able to effectively
accomplish its goals.
However, during lunch breaks and after office hours, employees from
different departments of ‘Kia Tyres’ meet regularly. This helps to fulfil
the social needs of employees and allows them to interact with
like-minded people. This enhances their job satisfaction by giving them a
sense of belongingness in the organisation.
(i)
Identify the types of organisation discussed in the above and give
their meaning.
(ii)
State two advantages of each of the types of organisation identified
in (i) above, not discussed in the given case.

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