Question Bank : Chapter 3 : Organizational Management

Question Bank  : Chapter 3 : Organizational Management

[answers are in red colour]

Q.1 What is organization?

1. Small or large group of people agreed to co-ordinate their activities in order to achieve the common goal

2. Two or more people work together under the supervision of executive leader

3. Two or more people work together without clear policies or procedures

4. Two or more people work together without clear division of responsibility and authority

Q.2 An organization requires

1.effective System of communication

2.Well defined division of  responsibility  and authority

3.Predifined and clear policies and procedures

4.All of above

Q.3 Following is not the initial step in forming organization

1.Determination of objectives and goals

2.Desgin functions to achieve goals and catagerize activities into groups

3.Define positions for functions and devise job descriptions , responsibilities

4. Aggressive budget planning for set up of organization

Q.4  What is organization structure

1.systematic arrangement of the people working for the organization in order to achieve the predefined goals

2. It is the structure which decides how employees will work with the help of each other

3.It is a framework for authority and responsibility associations between various positions.

4.All of above.

Q.5  State true or false : Types of organization structure  could be horizontal or vertical

1. True  2. False

Q.6  Organizational Charts are used to display the organizational structure

1. True  2. False

Q.7 Line type of organization also called as

1. Military organization or scalar organization

2. Corporate level organization

3. Multinational companies

4. All of above

Q.8 Line organization is having characteristics such as

1. relative authority & responsibility & not on activities

2. Authority flows directly from works Manager to Superintendent to Foremen to workers.

3. Immediate boss gives orders, assign duties, takes disciplinary actions

4.All of above

Q.9 Following is the main disadvantage of line organization

1. Flexible; easy to expand & contract

2. Implemented for small size of organization

3. Strong discipline

4. Increases dictatorial way of working

Q.10 Following is the main advantage of line organization

1. Overloads few key executives.

2. Provisions not made for training, developing & replacing top executives.

3. Flexible; easy to expand & contract

4. Neglect specialists and hence due to absence of specialists may be wastage of materials / man hours

Q.11 Line organization is implemented generally in

1. Automatic & continuous process industries like paper / sugar / textile

2. multinational companies

3. Government aided companies

4. large automotive companies

Q.12 Following is not the characteristic of line and staff organization

1. Line executives retain authority & control where as a staff executive relieves them & advice them on some specialized matters.

2. Final decision whether to accept or not remains with is line executives& in line & functional staff has more authorities.

3.A wide variety of positions exists

4.Monotonous working style and dictatorship by line executives

Q.13 Following is the disadvantage of line and staff organization

1. Product cost increases due to high salaries of executives.

2. Expert advice from specialists is available.

3. Line executives relieved from loads & can pay attention to production

4. Less wastage of men, material, machine hours.

Q.14  Following is the advantage of the line and staff organization

1. There is less confusion as in functional organization.

2. Staff department may infringe on rights & responsibilities of line organization.

3. Line executives may loose their drive, ingenuity, drive etc. if starts relying much on staff.

4. Product cost increases due to high salaries of executives.

Q.15 Line and staff is practiced in

1. Medium retailer malls

2. small scaled factories

3.medium scaled printing firm

4.All of above

Q.16  Functional type of organization is suggested by

1. F.W Taylor

2. Henry Fayol

3. Maslow

4. None of above

Q.17 Functional type of organization is mainly based upon

1. Identifying people with specific skill sets and placing them according to area of specialization

2. Assigning a job to a resource based on role and responsibility

3. Division of work and performance of each and every resource

4. None of above

Q.18 Main disadvantage of functional  organization is

1.Co-ordination is difficult as many people are working on same level

2.Maintaining discipline is difficult

3.Assigning a new job is difficult because of specialization area

4. All of above

Q.19  Project organization is formed

1.Temporarily and internally

2.Permanantly and externally

3.According to area of specialization of employees

4.According to the availability of line executives

Q.20  In project organization

1.Objectives and time duration of objectives are specific

2. Specialized area of employees is acquiring main focus

3. Loose disciplinary activities are carried out

4. Large number of employees is incorporated

Q.21 Types of project organization are

1.Function based

2.Matirx based

3.Project based

4.All of above

Q.22  Departmentation is

1. The process of breaking down of the enterprise in to various small segments

2. Identifying & grouping the work logically such that a team of persons can be organized to attain the objectives of the enterprise

3.When the size of organization grows it is devided into logical sections

4.All of above

Q.23  Following is not the advantage of the departmentation

1.Duties and authorities are prior known and hence improves efficiency

2.Managers are allowed to take  initiative and learn new managerial skills

3.No confuction , work repetitions and hence quality of the product increases.

4. Managing of different departments puts the excess overhead of cost on organization

Q 24 Departmentation could be

1.centralised and decentralized

2.horizontal and vertical

3.single authority multiple authority form

4.None of above

Q.25 Factors while executing departmentation are

1. Based on process & Function

2.Based on Product , customers and markets

3.Based on territory

4.All of above

Q.26 Functions based on which departmentation is executed

1.Manufacturing & Human resource

2.Engineering & R&D

3.Employee Relations & Finance

4.All of above

Q.27 Product based deparmentation mainly focuses on

1. Establishing product line with its own manager, own manufacturing , selling etc.

2. Cost of all the products manufactured by the organization

3. Grouping employees based on specialized skills required for the product manufacturing process

4. None of above

Q.28  customers/market based departmentation  mainly focuses

1. To give individual attention to diverse group of buyers in market sales activities

2. Small scale of buyers are considered while splitting in various activities

3. acquiring specialists in product line development

4.None of above

Q.29 Territory based departmentation is conceptualized as

1. Market area is broken into sales territories & a responsible executive is put in charge of each.

2. Process in which salesman reports to territory manager who reports to sales manager

3. Service and maintenance provided geologically separated area and each region has its own service manager 

4. All of above

Q.30  Centralized form of departmentation enforces

1.centralized control of high level authority

2.decision making by subordinates without approval

3.bottom  up management

4.None of above

Q.31 Decentralized form of departmentation is implementated for

1.The organization in which departments are geologically separated

2.small scaled or small sized organization

3.The organization in which communication is of top down form.

4.None of above

Q.32 If the capital for the business is provided by single person then the ownership is known as

1.Partnership

2.Proprietorship

3.Private Limited

4.Public Limited

Q.33  In a single ownership

1. profit and loss is bear by owner

2. generally small scaled business is covered

3.Better control can be established

4.All of above

Q.34  Following is the disadvantage of proprietorship

1. Whole power of the decision making is in hands of owner

2.Better control on communication throughout the growing of the business

3.The growth is limited as raising capital is having limited scope

4.Freedom of work and establishment of creative ideas in ones business execution

Q.35 Partnership is

1.Association of two or more people doing business together to share the profit and expenses

2. Association of two or more people doing business together to share only profit

3. Association of two or more people doing business together to invest capital only once while setting up business

4.None of above

Q.36  Partnership Deed includes

1. Name of firm Product, purpose of the firm

2. Address, no. of partners of the firm. Covers all areas of disagreement and defined authority, rights, & duties of partners.

3. How profits & losses be shared by all partners.

4. Intial financial budget and investment details of execution

Q.37 Sleeping partner is

1.Who contributes capital , shares profit & losses but does not contribute in day to day affairs of the firm

2. Who contributes capital , shares profit & losses as weel as contribute in day to day affairs of the firm

3. Who only contributes capital

4.None of above

Q.38 Active partner is

1.Who contributes capital , shares profit & losses as well as  contribute in day to day affairs of the firm

2.Who contributes capital , shares profit & losses but does not contribute in day to day affairs of the firm

3. Who only contributes capital and shares profit and losses

4. None of above

Q.39 General Partnership has following characteristic

1. Each partner has full powers to act like single proprietorship.

2. As size of business grows more partners can be added with consent of all old partners.

3. Large capital is available and losses are shared by large number of partners

4. All of above

Q.40  In case of limited partnership

1.Risk is less as compared to general partnership

2.It is Less costly for the firm

3. Investors / Lenders hesitate to invest

4.All of above

Q.41  Joint Stock company is

1. association of individuals called shareholders who join together to share profit & agree to supply capital divided into shares that are transferable for carrying on a specific business.

2. Share based association of two or more partners

3. mainly consisting of active participation of shareholders in day to day activites of the company

4.None of above

Q.42 Finance for Joint stock company is raised through

1.Shares , Debentures, Loans from financial/industrial corporations

2.Private property or assets of shareholders

3.Personal loans of shareholders

4.None of above

Q.43  Following are must does for private limited company

1. The capital is collected from private partners

2. annual meeting is must

3. Must send a certificate to Registrar every year stating that no. of share holders (excluding employee shareholders & ex-employee share holders) are not more than 50)

4.All of above

Q. 44 In case of public limited companies, it is must to send financial statements such as balance sheet, profit and loss account to all share holders

1. True 2.False

Q.45 Co-operative society is having following characteristic

1.  It’s a voluntary, democratic ownership formed by some motivated individuals to  get daily necessities of life at rates lesser than market

2. cooperation & self help

3. Main aim is not to earn profit but provide goods & services to members at cheaper rates

4.All of above

Q.46 Public sector is

1. A public enterprise is one which is owned by state or managed by state or owned & managed by state

2.Not preventing concentration of wealth in the hands of few.

3.worked with solely  public investors

4.None of Above