Organising

Organising is a concept that plays a crucial role in increasing the efficiency of work.It is a process of identifying , grouping and allocating work in such a way that efficient results are achieved.While Organising one needs to develop a relationship between various stages of the organisation. These various levels in ten Organisation are defined by the term organisation structure.The structure is a framework for the managers and employees working in a particular Organisation .

Multiple Choice Questions

Following are some of the questions related to the Chapter : Organising .

Question- Organizing is the process of ______ and ______ the activities of an enterprise and 

1. 1. Defining and grouping
   2. Allocating and defining
   3. Establishing relationships and Grouping 
   4. Defining and allocating

Answer-The answer is (A) defining and grouping. The process of organizing involves defining the activity followed by grouping them .

Question – Who gave the definition that Organizing is a process of Identity and grouping the work to be performed , defining and delegating the responsibility and authority and establishing relationships for the purpose of enabling people to work most effectively together in accomplishing objectives .

1. 1. Louis Allen
   2. Theo Haimman
   3. Chester Barnard
   4. Keith Davis 

Answer – The answer is (A) Louis Allen. The definition is given by him.

Question – Which of the following features is of Formal organization -:

1. 1. Directed by company rules and regulations 
   2. Managers are leaders 
   3. Both (1) and (2)
   4. None of these

Answer – The correct answer is option (C) as Formal organization finds its origin from the rules and regulations of the company further the leadership of a formal organization is Managers . Managers are the leaders in case of formal organization.

Question – Organisational structure is a 

1. 1. Framework within which managerial and operating tasks are performed
   2. Only managerial task are performed 
   3. Only operating tasks are performed
   4. None of these

Answer – The correct answer is option (A) as Organisational structure is a framework within which managerial and operating tasks are performed.

Question – What is the point of distinction between formal and informal organization 

1. 1. The managers are the leaders in case of formal organization while in case of informal organization the managers may or may not be the leaders and the leaders are chosen by the groups
   2. Formal organization is flexible in nature while informal is rigid in nature 
   3. Only (1)
   4. Both (1) and (2)

Answer – The correct answer is Option (C) only 1 as the managers are leaders in case of formal organization while incase of informal organization they may or may not be . While option 2 is not correct as Formal organizations are rigid in nature while informal organizations are flexible.

Question – Which of the following statement is correct -:

1. 1. Flow of communication is scalar in case of formal organization 
   2. Informal organization has defined structure and form
   3. The standard of behavior is based on group norms in a formal organization
   4. The mutual relationships are well defined in an informal organization

Answer –  The correct option is (A) as an Informal organization has no defined structure and form ;The standard of behavior is based on group norms in case of informal organization; The mutual relationships are well defined in an formal organization. Hence 1 is correct.

Question – Which one is a type of Organizational structures –

1. 1. Functional structure
   2. Responsibility structure 
   3. Behavioral structure 
   4. None of the above 

Answer – The correct option is (A) , Functional structure is a type of Organizational structure.

Question -How many types of Organizational structures are present -:

1. 1. Three
   2. Two
   3. One 
   4. Four 

Answer – There are Two types of Organizational structures these are Functional structure and divisional structure . Hence the correct option is (B) .

Question – which of the following is an advantage of Functional structure 

1. 1. Functional structure leads to occupational specialization
   2. Functional structure promotes better control and coordination within the department
   3. Only (1)
   4. Both (1) and (2)

Answer – Functional structure leads to occupational specialization and promotes better control and coordination within the department. Hence the correct option is Both (1) and (2).

Question – Which of the following is a point of distinction between functional division and divisional structure

1. 1. Formation is based on functions in case of functional structure while in case of divisional structure the formation is based on product
   2. Not Easy to fix  responsibilities in case of divisional structure while it is easy to fix responsibilities in case of functional structure 
   3. Product specialization takes place in functional structure
   4. Managerial development is easy in case of functional structure

Answer – The formation is based on functions in case of Functional structure while is based on product in  case of divisional structure so option (A) is correct.Responsibility is easy to fix in case of divisional structure while difficult in case of functional structure ; product specialization is a core of divisional structure .

Question – Find the correct Statement 

1. 1. Product specialization takes place in functional structure
   2. Easy to fix  responsibilities in case of divisional structure
   3. Both (1) and (2)
   4. Only 1
   5. Only 2

Answer-The Correct answer is option (C) as functional structure leads to product specialization and the responsibilities are easy to fix in case of divisional structure . 

Question – Divisional structure 

1. 1. Promotes flexibility and initiative
   2. It facilitates expansion and growth of new division
   3. Divisional heads are accountable
   4. All the above

Answer – Divisional structure Promotes flexibility and intiative.It facilitates expansion and growth of new division

And the Divisional heads are accountable . Hence the correct option is (D) All of the above.

Question -Which of the following are Elements of Delegation -:

1. 1. Authority
   2. Responsibility
   3. Accountability 
   4. All the above

Answer – Authority, Responsibility and Accountability all three are Elements of Delegation . Hence the correct answer is (D) All of the Above.

Question – What are the benefits of Delegation –

1. 1. Employee development 
   2. Better coordination 
   3. Facilitation of growth
   4. Motivation of employees
   5. Only( 1) and (4)
   6. All of the above

Answer – Benefits of Delegation are Better coordination ,Facilitation of growth,Motivation of employees and Employee development. The correct answer is (F) all the above.

Question -What is Decentralization 

1. 1. Transfer of authority to lower level of management
   2. In the process in which the decision making responsibilities are distributed.
   3. Delegation of responsibility to all the levels of management 
   4. All the above

Answer – The process of decentralization is a Transfer of authority to a lower level of management. In the process of decentralization  the decision making responsibilities are distributed.Delegation of responsibility to all the levels of management is also called decentralization.The correct answer is option D all the above

Question -Which one of the following is among the steps of Organizing –

1. 1. Establishing reporting relationship
   2. Assignment of duties
   3. Only 1 
   4. Both 1 and 2
   5. None of the above

Answer – The process  of organizing has the following steps -:Identification and division of work,Departmentalization,Assignment of duties,Establishing reporting relationships.

Hence the correct answer is Both A and B.

Question – find the correct Statement –

1. 1. Transfer of authority to a lower level of management is called decentralization
   2. Benefits of Delegation are Better coordination ,Facilitation of growth,Motivation of employees and Employee development
   3. Only (1)
   4. Only (2)
   5. Both (1) and (2)

Answer- Decentralization is Transfer of authority to lower levels of management. The Benefits of Delegation are Better coordination ,Facilitation of growth,Motivation of employees and Employee development and hence both the statements are correct -option E.

Question – Find the incorrect statement

1. 1. Authority, Responsibility and Accountability all three are Elements of Delegation 
   2. Divisional structure Promotes flexibility and initiative
   3. Flow of communication is scalar in case of formal organization 
   4. Managers are leaders in case of informal organization

Answer – The incorrect statement is managers are leaders in case of informal organization while the correct answer is that managers are leaders in case of Formal organization. Hence the correct answer is D. 

Question – Which of the following are correct regarding Authority 

1. 1. Authority means right to command
   2. Authority can be delegated
   3. Authority arises from formal position
   4. All the above

Answer – The correct answer is all of the above  . Authority means right to command

Authority can be delegated and it  arises from formal position.

Question – Which of the following options describe the importance of Decentralization-

1. 1. Develops managerial talent for The future
   2. Quick decision making 
   3. Facilitates growth and better control
   4. All of the above

Answer – The importance of Decentralization are Develops managerial talent for The future,Quick decision making 

Facilitates growth and better control and hence the correct option is D all the above.

Question – The process of organizing involves following steps –

1. 1. Identification and division of work 
   2. Assignment of duties 
   3. Establishing reporting relationship
   4. Departmentalization

Arrange them in correct order -:

Answer

A- D-B-C

The process has the following steps -:Identification and division of work,Departmentalization,Assignment of duties,Establishing reporting relationships.

Question – What is the Incorrect statement-

1. 1. The importance of Decentralisation is that it  develops managerial talent for the future, quick decision making, facilitates growth and better control
   2. Authority means right to command
   3. The process of organizing involves defining the activity followed by grouping them 
   4. Authority, Responsibility and Accountability are not Elements of Delegation

Answer – The correct answer is Authority, Responsibility and Accountability all three are Elements of Delegation .Hence the correct answer is Option B. As Authority means right to command , decentralisation means Quick decision making,Facilitates growth and better control.