General Concepts of Organizing
What does the organizing function primarily ensure?
- A) Decision-making
- B) Goal attainment
- C) Profit maximization
- D) Resource allocation
Answer: B
Which company is used as a case study to explain the importance of organizing?
- A) ONGC
- B) Wipro Technologies
- C) McNeil Consumer Healthcare
- D) Accenture
Answer: B
Organizing can be defined as:
- A) Allocation of resources for goal attainment.
- B) Initiation of plan implementation.
- C) Assignment of duties and relationships.
- D) All of the above.
Answer: D
Which of the following is NOT a feature of organizing?
- A) Establishing authority relationships
- B) Clarifying tasks and roles
- C) Resource wastage
- D) Integration of efforts
Answer: C
Which is the first step in the process of organizing?
- A) Departmentalization
- B) Identification of work
- C) Assignment of duties
- D) Establishing reporting relationships
Answer: B
Steps in the Process of Organizing
What is the purpose of departmentalization?
- A) Assigning duties randomly
- B) Grouping similar activities
- C) Creating reporting hierarchies
- D) Eliminating duplication of work
Answer: B
What is essential to match during the assignment of duties?
- A) Budget and roles
- B) Employee skills and job requirements
- C) Departmental goals
- D) Authority and accountability
Answer: B
What does establishing reporting relationships help in?
- A) Hierarchical clarity
- B) Cost minimization
- C) Employee promotion
- D) Creativity enhancement
Answer: A
Which of the following is NOT a step in the organizing process?
- A) Identification of work
- B) Distribution of profits
- C) Departmentalization
- D) Establishing authority relationships
Answer: B
How does organizing eliminate ambiguity?
- A) By increasing wages
- B) Through clear role definitions
- C) By conducting regular meetings
- D) Through informal communication
Answer: B
Importance of Organizing
Which of the following is a benefit of specialization through organizing?
- A) Employee flexibility
- B) Reduced productivity
- C) Efficient task performance
- D) High absenteeism
Answer: C
How does organizing facilitate adaptation to changes?
- A) By avoiding new projects
- B) Through resource wastage
- C) By modifying interrelationships
- D) By increasing bureaucracy
Answer: C
Which aspect of organizing boosts effective administration?
- A) Delegation of roles
- B) Flexibility in structures
- C) Role clarity and reporting
- D) Informal interaction
Answer: C
What is a major advantage of organizing?
- A) Encouraging functional empires
- B) Avoiding resource optimization
- C) Ensuring smooth coordination
- D) Creating competition among departments
Answer: C
How does organizing impact personnel development?
- A) Limits their responsibilities
- B) Increases task duplication
- C) Encourages creativity and skill development
- D) Reduces delegation opportunities
Answer: C
Formal vs Informal Organization
What is the primary characteristic of a formal organization?
- A) Fluid communication
- B) Emphasis on social needs
- C) Defined authority structure
- D) Unstructured operations
Answer: C
Which statement about informal organizations is true?
- A) They follow rigid rules.
- B) They emerge spontaneously.
- C) They are created by management.
- D) They are only applicable to small companies.
Answer: B
Informal organizations primarily fulfill which need of employees?
- A) Financial
- B) Social
- C) Promotional
- D) Educational
Answer: B
Which is a limitation of a formal organization?
- A) Provides role clarity
- B) Procedural delays
- C) Encourages creativity
- D) Reduces conflicts
Answer: B
What is a disadvantage of informal organizations?
- A) Fast communication
- B) Resistance to organizational changes
- C) Supports formal structure
- D) Fulfills employee social needs
Answer: B
Functional and Divisional Structures
Functional structure is based on:
- A) Geographical areas
- B) Similar job functions
- C) Diverse product lines
- D) Independent units
Answer: B
Which of the following is an advantage of divisional structure?
- A) Reduced flexibility
- B) Product specialization
- C) Increased task overlap
- D) No accountability
Answer: B
What is a key limitation of the functional structure?
- A) Encourages managerial development
- B) Coordination difficulties across departments
- C) Promotes cost-efficiency
- D) Facilitates duplication of work
Answer: B
Which structure promotes integration of efforts for product lines?
- A) Divisional structure
- B) Formal structure
- C) Functional structure
- D) Informal structure
Answer: A
What leads to flexibility in divisional structures?
- A) Centralized operations
- B) Autonomous units
- C) Informal communication
- D) Functional specialization
Answer: B
Delegation and Decentralization
- What does delegation primarily involve?
- A) Transfer of ownership
- B) Assignment of tasks without authority
- C) Downward transfer of authority and responsibility
- D) Redistribution of profits
Answer: C
- Which of the following is NOT an element of delegation?
- A) Authority
- B) Responsibility
- C) Accountability
- D) Centralization
Answer: D
- In delegation, authority flows from:
- A) Subordinate to superior
- B) Top to bottom
- C) Lateral relationships
- D) Management to customers
Answer: B
- What is the primary benefit of decentralization?
- A) More control by top management
- B) Faster decision-making at lower levels
- C) Reduced managerial responsibilities
- D) Greater coordination among departments
Answer: B
- Which of the following is a disadvantage of decentralization?
- A) More effective control
- B) Increased complexity in coordination
- C) Reduced employee motivation
- D) Lower decision-making speed
Answer: B
- Which statement best defines decentralization?
- A) The concentration of decision-making power at the top levels of management
- B) The dispersion of decision-making authority throughout the organization
- C) The total removal of decision-making from lower levels
- D) Giving more control to external consultants
Answer: B
- Which of the following is an example of decentralization in an organization?
- A) A company’s headquarters makes all decisions regarding product design
- B) The marketing department decides the promotional strategies independently
- C) All decisions are made by a central committee
- D) Managers have to report all decisions to top management
Answer: B
- Which of the following is a benefit of delegation?
- A) Increased managerial workload
- B) Empowerment of employees
- C) Reduction in the scope of authority
- D) Overloaded decision-making at the top levels
Answer: B
- In delegation, who remains accountable for the final results of a task?
- A) The subordinate
- B) The superior
- C) The department head
- D) External consultants
Answer: B
- Which of the following is true about authority in delegation?
- A) Authority is never delegated
- B) Authority cannot be taken back once delegated
- C) Authority flows downward from the superior to the subordinate
- D) Authority is granted by subordinates
Answer: C
Organizational Structures: Functional vs Divisional
- Which of the following is an advantage of a functional structure?
- A) Encourages interdepartmental collaboration
- B) Promotes specialization and efficiency
- C) Increases decision-making speed
- D) Leads to higher flexibility
Answer: B
- Which organizational structure would be best suited for a company with multiple product lines that requires flexibility?
- A) Functional structure
- B) Divisional structure
- C) Informal structure
- D) Hierarchical structure
Answer: B
- In a functional structure, employees are grouped based on:
- A) Product lines
- B) Geographic areas
- C) Their specific job functions
- D) Customer type
Answer: C
- Which is a key disadvantage of a divisional structure?
- A) Better product specialization
- B) Duplication of efforts across divisions
- C) Enhanced decision-making
- D) Increased coordination between functions
Answer: B
- A divisional structure is most suitable for:
- A) Small organizations with a limited number of functions
- B) Large organizations with multiple product lines or markets
- C) Organizations focused on a single product
- D) Centralized organizations
Answer: B
- What is a common problem in functional structures?
- A) Increased interdepartmental cooperation
- B) Lack of specialized skills
- C) Interdepartmental conflicts and poor coordination
- D) Higher levels of flexibility and autonomy
Answer: C
- Which of the following is NOT an advantage of a divisional structure?
- A) Product specialization
- B) Increased accountability
- C) Economies of scale
- D) Duplication of resources
Answer: D
- A company that uses a divisional structure would likely have divisions based on:
- A) Job functions such as marketing or finance
- B) Product types or geographical areas
- C) Seniority levels
- D) Employee skill levels
Answer: B
- In a functional structure, the performance of each department is assessed:
- A) On the basis of overall organizational performance
- B) By the division heads
- C) By product line profitability
- D) Through interdepartmental reviews
Answer: A
- Which of the following best describes a divisional structure?
- A) A structure where each department is highly specialized
- B) A structure based on product lines, each operating as a separate business unit
- C) A structure where managers have little decision-making authority
- D) A structure that uses a single centralized unit for decision making
Answer: B
Formal vs Informal Organization
- Which of the following describes a key characteristic of a formal organization?
- A) It develops organically through social interactions
- B) It focuses on informal relationships and employee bonding
- C) It is intentionally designed by management with specific roles and authority
- D) It has no defined structure
Answer: C
- Which of the following is an example of informal organization?
- A) A company’s hierarchical reporting structure
- B) Employees forming social groups in the cafeteria
- C) Defined channels for task delegation
- D) A formal training program for new employees
Answer: B
- A formal organization primarily focuses on:
- A) Enhancing social connections
- B) Task coordination and role clarity
- C) Informal problem-solving
- D) Promoting employee creativity
Answer: B
- Which of the following is an advantage of informal organization?
- A) Clear role specification
- B) Faster communication and feedback
- C) Strict adherence to rules
- D) Enhanced decision-making authority
Answer: B
- A disadvantage of informal organization is:
- A) It promotes faster decision making
- B) It may lead to rumors and misinformation
- C) It creates clear authority lines
- D) It strengthens formal policies
Answer: B
Delegation vs Decentralization
- Which of the following is true about delegation?
- A) It involves the complete transfer of authority to subordinates
- B) It is a broader policy decision made by the top management
- C) It is a short-term strategy for managing daily tasks
- D) It helps a manager focus on high-priority tasks by assigning less critical ones
Answer: D
- Decentralization refers to:
- A) The act of centralizing all decision-making authority
- B) Dispersing decision-making authority to lower management levels
- C) Transferring only routine tasks to lower management
- D) Delegating specific tasks without authority
Answer: B
- Which of the following is NOT a characteristic of decentralization?
- A) Empowerment of lower management
- B) Reduced need for supervision
- C) Concentration of decision-making at the top
- D) Increased speed of decision-making
Answer: C
- Delegation differs from decentralization in that delegation is:
- A) A one-time event
- B) A process primarily used for empowering lower management
- C) Limited to specific tasks within a department
- D) A philosophy of distributing decision-making authority
Answer: C
- Which of the following is an advantage of decentralization?
- A) More control by top management
- B) Slower decision-making process
- C) Greater flexibility and faster decision-making at lower levels
- D) Higher coordination between departments
Answer: C
Types of Organizational Structures
- Which type of organizational structure groups activities on the basis of functions such as marketing, production, and finance?
- A) Divisional structure
- B) Matrix structure
- C) Functional structure
- D) Team-based structure
Answer: C
- A company that organizes its work around product lines such as electronics, clothing, and food would most likely adopt which type of structure?
- A) Functional structure
- B) Divisional structure
- C) Informal structure
- D) Flat structure
Answer: B
- In a functional structure, coordination across departments can be a challenge due to:
- A) Increased specialization
- B) A narrow span of management
- C) Lack of clear responsibilities
- D) The rigid nature of the structure
Answer: A
- Which of the following organizational structures is best suited for a company with a variety of products that require different operational units?
- A) Functional structure
- B) Matrix structure
- C) Divisional structure
- D) Centralized structure
Answer: C
- What is the main advantage of the matrix structure?
- A) Clear hierarchical lines
- B) Enhanced flexibility and coordination across functions
- C) Centralized decision-making
- D) Simplified communication
Answer: B
Departmentalization
- Which of the following is NOT a common basis for departmentalization?
- A) Territory
- B) Product
- C) Skill level
- D) Function
Answer: C
- When a company organizes its departments based on geographic locations such as North, South, and West regions, this is known as:
- A) Product departmentalization
- B) Territorial departmentalization
- C) Functional departmentalization
- D) Customer-based departmentalization
Answer: B
- A company that organizes its work based on the specific products it manufactures, like electronics and apparel, is using which form of departmentalization?
- A) Functional departmentalization
- B) Product departmentalization
- C) Geographic departmentalization
- D) Customer departmentalization
Answer: B
- Which of the following is an advantage of departmentalization by function?
- A) Easier coordination across diverse product lines
- B) More focus on specialized tasks within departments
- C) Increased duplication of efforts
- D) Enhanced autonomy of departments
Answer: B
- Which type of departmentalization allows the company to better address specific customer needs?
- A) Product departmentalization
- B) Customer departmentalization
- C) Geographic departmentalization
- D) Functional departmentalization
Answer: B
Authority and Responsibility
- In an organizational hierarchy, authority refers to:
- A) The ability to perform tasks independently
- B) The right to issue commands and expect compliance
- C) The responsibility for achieving departmental goals
- D) The obligation to report performance to higher management
Answer: B
- What is the relationship between authority and responsibility in delegation?
- A) Authority should exceed responsibility
- B) Authority should be equal to responsibility
- C) Responsibility is granted without authority
- D) Authority and responsibility are separate in the delegation process
Answer: B
- Accountability in the delegation process means that a subordinate is:
- A) Responsible for completing tasks assigned
- B) Answerable for the outcome of tasks
- C) Empowered to make decisions independently
- D) Relieved of the responsibility for completing tasks
Answer: B
- Which of the following is true regarding the delegation of authority?
- A) Authority can be transferred, but responsibility cannot
- B) Both authority and responsibility are delegated to subordinates
- C) Responsibility is delegated but not authority
- D) Authority and responsibility cannot be separated
Answer: A
- If a subordinate fails to complete a delegated task, who is ultimately accountable?
- A) The subordinate
- B) The superior who delegated the task
- C) The department head
- D) Top management
Answer: B
Centralization and Decentralization
- Which of the following is a characteristic of a centralized organization?
- A) Decision-making authority is distributed to all levels
- B) Top management retains the decision-making power
- C) Employees are encouraged to make autonomous decisions
- D) Lower-level managers have considerable decision-making power
Answer: B
- Which of the following is an advantage of decentralization?
- A) Reduced autonomy for lower management
- B) Faster decision-making at lower levels
- C) Greater control by top management
- D) Slow adaptation to changes
Answer: B
- A company with centralized decision-making is most likely to experience:
- A) Increased employee satisfaction
- B) Delays in decision-making
- C) Greater autonomy at the lower levels
- D) Increased flexibility
Answer: B
- Which of the following is a potential disadvantage of decentralization?
- A) Faster decision-making
- B) Better customer service
- C) Difficulty in coordinating across departments
- D) Greater control by top management
Answer: C
- When should an organization choose centralization over decentralization?
- A) When quick decision-making is essential
- B) When uniformity in decision-making across the organization is needed
- C) When local managers have more knowledge than top management
- D) When the company has diversified operations
Answer: B
Delegation in Management
- Delegation is most effective when:
- A) The subordinate has more authority than the superior
- B) The subordinate is given the freedom to make key decisions
- C) The authority granted is less than the responsibility
- D) The authority granted matches the responsibility assigned
Answer: D
- Which of the following is a key benefit of delegation for managers?
- A) It reduces the scope of the manager’s authority
- B) It helps managers focus on more strategic tasks
- C) It limits the responsibilities of lower management
- D) It hinders the development of managerial skills
Answer: B
- What is the main reason a manager might fail to delegate tasks?
- A) Lack of trust in subordinates
- B) Unwillingness to train employees
- C) Desire for more authority
- D) All of the above
Answer: D
- Which of the following is NOT a necessary element in the delegation process?
- A) Assigning responsibility
- B) Transferring authority
- C) Establishing clear accountability
- D) Avoiding feedback and control
Answer: D
- Delegation can help in the development of employees by:
- A) Providing them with more autonomy and decision-making authority
- B) Making them accountable for their supervisor’s tasks
- C) Reducing their involvement in decision-making
- D) Limiting their scope of responsibility
Answer: A
Performance in Delegation
- Effective delegation leads to which of the following?
- A) Overloaded management
- B) Increased productivity and innovation
- C) Increased decision-making delays
- D) Reduced employee satisfaction
Answer: B
- A manager’s primary role in delegation is to:
- A) Assume full responsibility for subordinates' tasks
- B) Monitor and review the progress of tasks assigned
- C) Relinquish all authority to subordinates
- D) Avoid involvement in subordinates' work
Answer: B
- Which of the following is a sign that delegation has failed?
- A) Employees take ownership of their tasks
- B) The manager still has to make all decisions
- C) Employees are satisfied with their work
- D) Subordinates have a high degree of autonomy
Answer: B
- In delegation, the responsibility for the final outcome always rests with:
- A) The subordinate
- B) The superior
- C) The department head
- D) The team leader
Answer: B
- Which of the following is the first step in the delegation process?
- A) Assigning responsibility
- B) Setting deadlines
- C) Granting authority
- D) Monitoring progress
Answer: A
Comparative Structures and Management
- Which organizational structure is most likely to support rapid decision-making at all levels?
- A) Centralized structure
- B) Functional structure
- C) Divisional structure
- D) Decentralized structure
Answer: D
- Which of the following is NOT a characteristic of functional structure?
- A) Specialized roles within departments
- B) Clear lines of authority and communication
- C) Increased flexibility in decision-making
- D) Reduced interdepartmental coordination
Answer: C
- Which organizational structure can become highly complex as the organization grows and diversifies?
- A) Functional structure
- B) Divisional structure
- C) Matrix structure
- D) Informal structure
Answer: B
- Which of the following is a disadvantage of a matrix structure?
- A) Clear division of labor
- B) Increased complexity and confusion
- C) Faster decision-making processes
- D) Simplified communication channels
Answer: B
- Which structure is ideal for companies with multiple product lines and geographically dispersed operations?
- A) Functional structure
- B) Divisional structure
- C) Centralized structure
- D) Informal structure
Answer: B
Organizational Design and Structure
- Which organizational structure is best suited for a company that focuses on a single product or service?
- A) Divisional structure
- B) Functional structure
- C) Matrix structure
- D) Team-based structure
Answer: B
- What is the main disadvantage of a functional structure when an organization diversifies into multiple products?
- A) It promotes flexibility and autonomy
- B) It results in functional empires and poor interdepartmental coordination
- C) It simplifies decision-making processes
- D) It reduces specialization in functions
Answer: B
- In a divisional structure, divisions are typically formed based on which of the following?
- A) Functions such as marketing or finance
- B) Products, services, or geographical locations
- C) Job skills or competencies
- D) The authority and hierarchy within the organization
Answer: B
- Which of the following is a key benefit of decentralization?
- A) Reduced decision-making speed
- B) Greater autonomy and quicker responses to local needs
- C) Increased concentration of power at the top levels
- D) Limited responsibility at lower levels of management
Answer: B
- Which of the following best defines decentralization?
- A) The delegation of all authority to a single individual
- B) The transfer of decision-making power to the highest levels of management
- C) The delegation of decision-making authority to lower levels of the hierarchy
- D) The removal of authority and responsibility from managers
Answer: C
Delegation and Accountability
- Which of the following statements is true about delegation?
- A) Delegation involves giving both authority and responsibility to subordinates
- B) Once authority is delegated, the superior is no longer accountable for the outcome
- C) Delegation eliminates the need for regular monitoring and feedback
- D) Delegation always results in increased employee workload
Answer: A
- In delegation, what is the relationship between authority and responsibility?
- A) Responsibility is delegated, but authority cannot be transferred
- B) Authority and responsibility should always be separated
- C) Authority must always exceed responsibility for effective delegation
- D) Authority and responsibility must be aligned for proper delegation
Answer: D
- Which of the following is a primary goal of delegation in management?
- A) To reduce the authority of top-level managers
- B) To increase the workload of employees at lower levels
- C) To empower employees and free up time for managers to focus on strategic tasks
- D) To increase the power of the central management
Answer: C
- In an organization practicing decentralization, decision-making authority is likely to be:
- A) Centralized at the top level only
- B) Given to the lowest levels of the hierarchy closest to the point of action
- C) Equal across all management levels
- D) Limited to the department heads only
Answer: B
- Which of the following is an example of a task that should be delegated by a manager?
- A) Deciding the overall business strategy
- B) Making routine operational decisions that do not require high-level authority
- C) Approving the company’s annual budget
- D) Managing critical customer relations
Answer: B
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