1. A manager, no matter how capable he is, cannot manage to do every task on his own. So, what should the manager do?
(a) Do as much as he can do
(b) Delegate the work
(c) Make a complaint to authorities for being assigned excessive work
(d) Appoint more staff
Ans: (b) Delegate the work
2. Hitler and Dumbo are managers working in Marketing department of Sonepat Sweets Limited. Both have good companionship and team spirit. The sales turnover has been increasing rapidly. Hitler is of the view that the sales increase is due to their good cooperation and friendship, whereas Dumbo believes it to be because of effective management of the business enterprise, as a whole. Which of the following statements is suitable about the views of Hitler and Dumbo?
(a) Hitler is correct, as informal organization’s support is crucial for success of formal organization.
(b) Dumbo is correct, as formal organization is more important than informal organization for its success.
(c) Both are correct, but partially, as both formal and informal organization contribute to success of business.
(d) Both lack knowledge about functioning of the organization as a whole.
Ans: (c) Both are correct, but partially, as both formal and informal organization contribute to success of business.
3. Why is it necessary to establish reporting relationships?
(a) To give superior status to the one who is to receive reports and feedback.
(b) To make a clear distinction between the class of employees getting and giving orders.
(c) To ensure coordination amongst the departments.
(d) To develop informal organization within formal organization.
Ans: (c) To ensure coordination amongst the departments.
4. Consider the following:
(i) Delegation and decentralization are closely related
(ii) Delegation and decentralization both are important
(iii) Delegation is meant for large organization
(iv) Decentralization is incomplete without centralization Of these statements:
(a) I and (ii) are correct (b) (ii) and (iii) are correct
(c) I and (iv) are correct (d) I, (iii) and (iv) are correct
Ans: (a) I and (ii) are correct
5. Span of control means:
(a) A tendency of overload supervisors with too much of work
(b) The number of subordinates a supervisor can effectively supervise
(c) No limit to the number of subordinates a supervisor can supervise
(d) A limit to delegation of authority to the subordinate.
Ans: (b) The number of subordinates a supervisor can effectively supervise
6. Name the process which involves structuring of human and physical resources to accomplish organizational objectives.
(a) Organizing (b) Staffing
(c) Planning (d) Directing
Ans: (a) Organizing
7. does not follow the scalar chain?
(a) Formal organization (b) Functional structure
(c) Divisional structure (d) Informal organization
Ans: (d) Informal organization
8. Which of the following can be delegated? Choose the correct option:
(i) Authority (ii) Responsibility (iii) Accountability
(a) Authority and Responsibility
(b) Partly Authority and Partly Accountability
(c) Responsibility and Accountability
(d) Partly Authority and Partly Responsibility
Ans: (a) Authority and Responsibility
9. Why organization structure is pyramid in shape?
(a) Because such a shape helps in achieving organizational objectives.
(b) Because authority flows from top to bottom.
(c) Because number of employees increase from top to bottom.
(d) Because there is no other shape in which organization structure can be made.
Ans:. (c) Because number of employees increase from top to bottom.
10. When decisions taken by the lower levels are numerous as well as important, an organization can be regarded as highly
(a) Formal (b) Centralised
(c) Decentralised (d) Coordinated
Ans: (c) Decentralised
11. X Ltd. is manufacturing cosmetics, medicines and shoes. Which type of organizational structure would be most suitable for the company?
(a) Functional structure (b) Divisional structure.
(c) Centralized structure (d) Decentralized structure
Ans: (c) Centralized structure
12. Indicate the correct sequence of the steps in the organizing process.
(1) Departmentalisation (2) Assignment of duties
(3) Identifying and dividing work (4) Establishing reporting relationships
Find the correct option:
(a) 3, 1, 2, 4 (b) 1, 2, 3, 4
(c) 4, 3, 1, 2 (d) 3, 2, 1, 4
Ans: (a) 3, 1, 2, 4
13. The relationship between different individuals not on the basis of superior- subordinate relationship but on the basis of personal likes, attitudes, interests, etc. is:
(a) Formal organization (b) Informal Organisation
(c) Centralized Organisation (d) Decentralised Organisation
Ans: (b) Informal Organisation
14. Which of the following is not the correct characteristic of formal organization?
(a) It clarifies the official lines of communication
(b) Its purpose is to achieve organizational objective
(c) It coordinates and integrates the efforts of various departments
(d) It is formed by the individuals to get social and psychological satisfaction.
Ans: (b) Its purpose is to achieve organizational objective
15. Which of the following is not an element of the process of delegation?
(a) Creation of an obligation
(b) Granting of authority
(c) Freedom from responsibility.
(d) Assignment of duties
Ans: (c) Freedom from responsibility.
16. Match Column I (Step in the Process of Organizing) with Column II (Example):
Column I Column II
(Step in the Process of Organizing)
A. Identification and Division of Work. (i) Giving work to individuals as per their abilities.
B. Departmentalization. (ii) Making a worker answerable to a particular foreman.
C. Assignment of Duties. (iii) Work involving manufacture of car involves steps like \
Painting, fitting engine, testing etc.
D. Establishing reporting relationships. (iv) A sales division for south India was created within a
Select from the following options:
(a) A-(ii); B-(i); C-(iv); D-(iii) (b) A-(iii); B-(i); C-(ii); D-(iv)
(c) A-(iii); B-(iv); C-(ii); D- (i) (d) A-(iii); B-(iv); C-(i); D-(ii)
Ans: (d) A-(iii); B-(iv); C-(i); D-(ii)
17. In which of the following cases Divisional Form of organization would be best suited?
(a) A company engaged in selling sewing machines in Delhi.
(b) A company manufacturing cars and cosmetic products.
(c) A company manufacturing cosmetics products.
(d) A company engaged in BPO services with an office in Gurgaon.
Ans: (b) A company manufacturing cars and cosmetic products.
18. In solving which of the following problems would Informal organization be most effective?
(a) Fixation of responsibility in case of a mass defect in manufacturing.
(b) Enforcing rules relating to discipline in the organization.
(c) Fulfilling social needs of the employees who are overworked.
(d) Curbing large employee turnover due to less compensation.
Ans: (c) Fulfilling social needs of the employees who are overworked.
(a) Increases the importance of superiors
(b) Decreases the importance of superiors
(c) Increases the importance of subordinates
(d) Decreases the importance of subordinates
Ans: (c) Increases the importance of subordinates