Problem 1:

(a) The grouping of organisational activities (usually into ‘departments' or larger ‘divisions') can be done in different ways. Outline 7 criteria which can be used for the grouping of organisational activities briefly explaining how each of the criteria influences the grouping.

(b) Why do organisations need a structure?

Problem 2:

(a) Why must management delegate some authority and responsibility in large complex organisations?

(b) Why, in practice, many managers are reluctant to delegate and attempt to do many routine matters themselves in addition to their more important duties?