ASSIGNMENT 6

ORGANISING
Multiple Choice Questions
1. Under what function of management the relationship between different posts
(positions) is explained?
(a) Planning (b) Communication
(c) Organisation (d) Supervision

2. Where lies the need of organisation?

(a) In business organisation (b) In non-business organisation
(c) In both (a) and (b) (d) No where

3. Which organisation structure is consciously or deliberately established?

(a) Formal (b) Informal
(c) Both (a) and (b) (d) None

4. Which organisation structure is based on rules and procedures?

(a) Informal (b) Formal
(c) Both (a) and (b) (d) None

5. Which structure of organisation is helpful in locating the inefficient employees?

(a) Formal (b) Informal
(c) Both the above (d) None of the above

6. Which organisation structure does not have duplication of work?

(a) Formal (b) Informal
(c) Both (a) and (b) (d) None of these

7. Which of the following is not the disadvantage of formal organisation?

(a) Lack of initiative (b) Delay in work
(c) Lack of favourtism (d) Mechanical relationship

8. In which organisation structure do we find “group norms”?

(a) Formal (b) Informal
(c) Both (a) and (b) (d) None of these

9. Which of the following is written in the organisation manual?

(a) Goods purchased
(b) Goods sold
(c) Meeting of Organisation
(d) Authority and responsibility of different posts

10. Which of the following organisations lasts longer?

(a) Formal (b) Divisional
(c) Both the above (d) Informal
11. ________ is more stable organisation.
(a) Formal (b) Informal
(c) Both (a) and (b) (d) None
12. Which one is not correct in respect of formal organisation:
(a) Definite responsibility (b) Definite authority
(c) Effective control (d) Social popularity
13. Which one of the following is not a part of process of organisation:
 (a) Grouping of activities
(b) Doing complete centralisation
(c) Defining inter-relationship
(d) Knowing the objectives of enterprise
14. Which is not a feature of formal organisation:
(a) It is personal (b) It is more stable
(c) It is deliberately created (d) It is based on rules and procedures
15. How many standardised forms of organisation structure are there?
(a) Two (b) Three
(c) Four (d) No definite number
16. Which of the following are parts of formal organisation?
(a) Functional organisation (b) Line organisation
(c) Line and staff organisatiion (d) All of these
17. Which organisation resists changes?
(a) Formal (b) Informal
(c) Both (a) and (b) (d) None
24Multiple Choice Questions
18. What do we call the division of organisation structure on the basis of products?
(a) Functional organisation (b) Divisional organisation
(c) Both (a) and (b) (d) None
19. If a company deals in metal products and plastic products, what type of
organisation will be useful for it?
(a) Informal (b) Functional
(c) Both the above (d) Divisional
20. Which organisation structure is compulsory?
(a) Formal (b) Informal
(c) Both (a) and (b) (d) None
21. Departments are established on the basis of ________ in functional organisation.
(a) Activities (b) Products
(c) Demand (d) Market
22. In which situation the divisional structure happens to be appropriate?
(a) Where the number of major products is more than one
(b) Where the size of the organisation is quite large
(c) Both the above
(d) Where primarily only one product is sold
23. Number of sub-ordinates under a superior is called:
(a) Office environment (b) Strict control
(c) Span of management (d) Scalar chain

24. In which type of organisation, the principle of scalar chain is fully followed:
(a) Divisional organisation (b) Formal organisation
(c) Informal organisation (d) None of the above

25. What is the key to managerial post?

(a) Responsibility (b) Authority
(c) Accountability (d) None

26. How is accountability created?

(a) By assigning responsibility (b) By assigning authority
(c) Both (a) and (b) (d) None of these

27. What is the basis of delegation of authority?

 (a) Centralisation (b) Decentralisation
(c) Both (a) and (b) (d) Division of labour

28. “Every step that increases the importance of the subordinates is called
decentralisation and any step that decreases it is called centralisation”. What
is it about?
(a) Formal organisation (b) Informal organisation
(c) Both (a) and (b) (d) None of these
29. What is decentralisation?
(a) Short form of delegation
(b) Extended form of delegation
(c) Middle form of delegation
(d) None of these
30. Which of the following increases the importance of the subordinates?
(a) Centralisation (b) Decentralisation
(c) Delegation (d) Specialisation
31. Which of the following has a wider scope?
(a) Management (b) Centralisation
(c) Decentralisation (d) Delegation
32. ‘More delegation of authority helps managerial development’ out of the
following with which this statement is related to?
(a) Delegation (b) Decentralisation
(c) Centralisation (d) All the above
33. On which of the following does decentralisation depend?
(a) Centralisation (b) Specialisation
(c) Scientific Management (d) Delegation
34. Which one is not correct in respect of delegation of authority:
(a) Increase in administrative work
(b) Development of sub-ordinates
(c) Convenience in business expansion
(d) Quick and better decision possible
35. Extended form of delegation of authority is called:
(a) Specialisation (b) Centralisation
(c) Decentralisation (d) Division of labour

1 MARK QUESTIONS
Q.1 “If we delegate authority, we multiply by two, if we decentralise it we multiply it by many”.
Name any one concept to which this statement is related.

Q.2 Name the function of management which coordinates the physical, financial and human
resources and establishes productive relations among them for achievement of specific goals.

Q.3 ‘Identifying and dividing the work’ is the first step in the process of one of the
functions of management. Identify the function.

3-6 MARKS QUESTIONS

Q1. A Manager increased the production target from 500 units to 700 units per month but the
authority to draw raw material was not given by him. The employees were not able to meet the new
target. Who should be held responsible for this and which principle has been violated here? Explain.
(4)
Q.2. A company is manufacturing washing machines. There is a well-defined system of jobs which
is clear and defines authority, responsibility and accountability in the company. But people are not
allowed interact beyond their officially defined roles. As a result, the company is not able to adopt
the changing business environment. The work force is also not motivated due to lack of social
interaction. The company is facing problems of procedural delays and inadequate recognition to
creative talents.
I. Suggest how the organisation can overcome the problems faced by it.
II. Give any two benefits it will derive from your suggestion. (4)

Q.3.Ishita Ltd. is manufacturing female wears only. Now company wants to expand its business and
also wants to manufacture male wear and kids wear for different market segments. Which type of
organizational structure should it adopt to achieve its target? Give arguments in support of your
answer. (3)

Q4. Manager of XYZ Ltd. is over burdened with routine work and is unable to concentrate on its
objectives and other important issues of the firm. To solve this problem which management concept
should be followed by manager? Also explain the related function. (3)

Q.5 A truck manufacturing company has its registered office in Delhi, manufacturing unit at
Gurgaon and marketing department is located at Faridabad. The company manufactures different
type of trucks. Which type of organisational structure should it adopt? Give reason. State any three
advantages of this organisation structure. (2+3= 5)

Q.6 “The responsibility of a firm should be divided among various levels such as top level, middle
level, and lower level”. Identify the concept of management and state its importance. (2+3= 5)

Q.7. Lalita Food Limited is a famous company making different food materials. Ms. Lalita is the
managing director of the company. She is fully attached to the employees of her company. This is
the very reason that before taking every decision she consults all the concerned employees. A
suggestion box has also been provided in the company. It is opened once a week. The employees
giving positive suggestions are rewarded. Besides, all the employees of the company also enjoy full
freedom to communicate with any senior officer any time, concerning matters of both types related
to their jobs or their personal lives.
Identify the form of organisation, described in the paragraph given above and write about two of its
advantages.