Chapter-wise MCQ Questions

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Question-1. ........... is the obligation to perform the assigned task.

  1. Authority
  2. Responsibility
  3. Accountability
  4. Permissibility

Question-2. Organisation is the harmonious adjustment of specialised parts of the accomplishment of some common purpose or purposes. What does this statement imply?

  1. It implies the features of organisation
  2. It implies the importance of organisation like specialisation, adaptation to change etc
  3. It refers to the process of organisation which includes assignment of duties
  4. None of the above

Question-3. Grouping of activities on the basis of functions is a part of

  1. Decentralised organisation
  2. Divisional organisation
  3. Functional organisation
  4. Centralised organization

Question-4. Grouping of activities on the basis of product lines is a part of

  1. Delegated organization
  2. Divisional organisation
  3. Functional organisation
  4. Autonomous organization

Question-5. Span of management refers to

  1. Number of managers
  2. Length of term for which a manager is appointed
  3. Number of subordinates under a superior
  4. Number of members in top management

Question-6. There is a board meeting going on for the Synco Informatics Ltd. Two of the top level managers, Mr. Vivek and Mr. Ankit are of a different view when it comes to the kind of working structure of the organisation. Mr. Vivek says that the organisation deals in variety of products, the growth prospects of the organisation are high and that it wants to expand to different territories. Which structure is he fighting for?

  1. Divisional structure
  2. Functional structure
  3. Matrix structure
  4. Line structure

Question-7. A network of social relationship that arises spontaneously due to interaction at work is called:

  1. Formal organisation
  2. Informal organisation
  3. Decentralisation
  4. Delegation

Question-8. A tall structure has a

  1. Narrow span of management
  2. Wide span of management
  3. No span of management
  4. Less levels of management

Question-9. Centralisation refers to

  1. Retention of decision-making authority
  2. Dispersal of decision-making authority
  3. Creating divisions as profit centre's
  4. Opening new centres or branches

Question-10. For delegation to be effective it is essential that responsibility be accompanied with necessary

  1. Authority
  2. Manpower
  3. Incentives
  4. Promotions.

Question-11. In which organisation structure do we find “group norms”?

  1. Formal
  2. Informal
  3. Both (a) and (b)
  4. None of these

Question-12. The form of organisation known for giving rise to rumours is called

  1. Centralised organisation
  2. Decentralised organisation
  3. Informal organisation
  4. Formal organization

Question-13. Under what function of management the relationship between different posts (positions) is explained?

  1. Planning
  2. Communication
  3. Organisation
  4. Supervision

Question-14. Where lies the need of organisation?

  1. In business organisation
  2. In non-business organisation
  3. In both (a) and (b)
  4. No where

Question-15. Which of the following does not follow the scalar chain?

  1. Functional structure
  2. Divisional structure
  3. Formal organisation
  4. Informal organisation.

Question-16. Which of the following is not an element of delegation?

  1. Accountability
  2. Authority
  3. Responsibility
  4. Informal organisation

Question-17. Which of the following is not the disadvantage of formal organisation?

  1. Lack of initiative
  2. Delay in work
  3. Lack of favouritism
  4. Mechanical relationship

Question-18. Which organisation structure is based on rules and procedures?

  1. Informal
  2. Formal
  3. Both (a) and (b)
  4. None

Question-19. Which organisation structure is consciously or deliberately established?

  1. Formal
  2. Informal
  3. Both (a) and (b)
  4. None

Question-20. Which structure of organisation is helpful in locating the inefficient employees?

  1. Formal
  2. Informal
  3. Both the above
  4. None of the above

Question-21. ___ involves giving authority and responsibility to subordinates.

  1. Division of work
  2. Decentralisation
  3. Delegation
  4. Centralisation

Question-22. ___ is the duty for job performance.

  1. Authority
  2. Responsibility
  3. Accountability
  4. Both(a) and(c)

Question-23. ___ is the organisational structure in which activities are grouped on the basis of products.

  1. Divisional structure
  2. Functional structure
  3. Formal
  4. Informal

Question-24. Authority granted to an employee should be

  1. More than the responsibility entrusted to him
  2. Less than the responsibility entrusted to him
  3. Equal to the responsibility entrusted to him
  4. All of the above

Question-25. Degree of decentralisation indicates

  1. degree of authority delegation.
  2. degree of responsibility.
  3. degree of power delegation.
  4. degree of accountability.

Question-26. Divisional structure leads to conflict in

  1. resource allocation.
  2. marketing management.
  3. motivation.
  4. planning process.

Question-27. In which respect does formal organisation differ from informal organisation?

  1. Production process
  2. Structuring
  3. Financial procedure
  4. Purchasing

Question-28. One of the following is an advantage of functional structure:

  1. Responsibility for end results
  2. Flexibility
  3. Personalised attention
  4. Easier employee learning

Question-29. One of the following is not an importance of organising:

  1. Role clarity
  2. Performance appraisal
  3. Adaptation to change
  4. Growth and expansion

Question-30. Organisation structure establishes relationships between

  1. organisation and environment.
  2. people, work and resources.
  3. organisation and society.
  4. suppliers and customers.

Question-31. Organising process includes one of the following:

  1. Grouping of activities
  2. Prescribing disciplinary action
  3. Determining objectives
  4. Prescribing work schedule

Question-32. Responsibility is derived from

  1. Authority
  2. Formal position
  3. Accountability
  4. All of the above

Question-33. The accountability flows

  1. In all directions
  2. Downwards
  3. Upwards
  4. None of the above

Question-34. When decision-making authority is retained organisation is said to be by higher management levels, an

  1. Decentralised
  2. Centralised
  3. Fragmented
  4. None of the above

Question-35. Which of the following cannot be delegated?

  1. Responsibility and accountability
  2. Authority and responsibility
  3. Accountability and responsibility
  4. All of the above

Question-36. Which one of the following does not follow scalar chain?

  1. Informal organisation
  2. Functional structure
  3. Formal organisation
  4. Divisional structure



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