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Organising Test - 2

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Organising Test - 2
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  • Question 1
    1 / -0.25
    Organisation structure establishes relationships between:
    Solution

    The correct answer is People, work and resources

    Key Points

    • The organization structure can be defined as the framework within which managerial and operating tasks are performed.
    • It specifies the relationships between people, work, and resources.
    • It allows correlation and coordination among human, physical and financial resources and this enables a business enterprise to accomplish desired goals.
    • The organization structure of a firm is shown in an organization chart.
  • Question 2
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    In which Organisation structure do we Find “Group Norms”?
    Solution

    The correct answer is Informal

    Key Points

    Informal Organisation

    • if we interact with certain people regularly we tend to get more informal with them. This is because we develop interpersonal relationships with them which are not based solely on work purposes.
    • These relationships might arise because of shared interests, like if you get to know that your colleague likes the same football club of which you’re a fan of.
    • As a matter of fact, informal organizations are out of the formal organization
    • This is because when people frequently contact each other we cannot force them into a rigid and completely formal structure.
    • They bond over common interests and form groups, based upon friendship and social interactions.
    • Unlike formal organization, the informal organization is fluid and there are no written or predefined rules for it.
    • It is a complex web of social relationships among members which are born spontaneously. Further, unlike the formal organization,
    • It cannot be forced or controlled by the management.
    • The standards of behavior evolve from group norms and not predefined rules and norms. Lastly, as there are no defined structures or lines of communication, the interactions can be completely random and independent lines of communication tend to emerge in informal organisations.

    Additional InformationSome Other Aspects of Informal Groups are as follows:
    1. Group Norms
    Parallel to performance and other standards established by the formal organizational structure, the informal groups have their own norms as rules of conduct and a standard of behavior that is expected of all members.

    2. Groups Roles
    There is an unwritten assignment within the group as to which task will be done by whom and under what conditions. Some job roles are assigned by the management by matching the job description with the person’s qualifications and some other roles develop within the group. For example, some members may informally be technical advisors to others as to how to do the job better and others may act as arbitrators in social problems or other differences that may arise among members.

    3. Group Goals
    The goal of the informal group, whether it be profitability that conflicts with the organizational goals or customer service which is in accord, heavily influences productivity. It is necessary to integrate the group goals with the organizational goals for the purpose of improvement and success.

    4. Leadership
    The informal leader emerges from the group either because of his personal charisma, his social status, or his technical expertise. He is not formally elected but is accepted in the minds and hearts of the workers. These leaders influence the behavior of others and remain leaders as long as they are sincere to the group interests.

    5. Group Cohesiveness
    Cohesiveness refers to the degree and strength of interpersonal attraction among members of the group. The high degree of cohesion is highly motivating in achieving group goals. Members help each other and support each other.

  • Question 3
    1 / -0.25
    What is the last step in organising process?
    Solution

    The correct answer is Establishing reporting relationship

    Key Points

    Steps Involved in the Process of Organizing

    1. Identification & Division Of Work: –

    • The total work to be done should be divided into specific jobs as according to predetermined plans.
    • Job a set of related tasks that can be performed by an individual.
    • It should have specific and definite tasks to be performed. As far as possible, it should define expected results along with the job.
    • Division of work → specialization of efforts and skills + avoids duplication of work.
    • Management must ensure that all the activities required to achieve organizational objectives are identified.

    2. Departmentalization:

    • Grouping similar and related jobs into larger units called departments, divisions or sections and placing them under a department head. It facilitates specialization.
    • The departments are linked together and interdependent.
    • Aims at achieving co-ordination and facilitate unity of action.

    Departmentation can be done on the basis of:

    • Functions: marketing, personnel, finance etc.
    • Products: Textiles, chemical, power division etc.
    • Territories: Western, northern, central, eastern etc.

    3. Assignment Of Duties:

    • Define the work of different job positions and allocate work accordingly.
    • Once departments are formed, the dept is placed under the charge of an individual.
    • Jobs are assigned to an individual best suited to perform it.
    • Qualifications, experience, ability and aptitudes of people should be matched with duties.
    • E.g. activities of finance should be assigned to persons having qualifications and experience in finance e.g. C.A‘s.

    4. Establishing Reporting Relationships:

    • Granting requisite authority to enable employees to perform the job satisfactorily.
    • Superior subordinate relations between different people and job positions created, so that everybody knows from whom he is to take orders and to whom he can issue orders.
    • Creates management hierarchy = a chain of command from the top manager to the individual at the lowest level.
    • This helps in coordination.
  • Question 4
    1 / -0.25
    Grouping of activities on the basis of product lines is a part of?
    Solution

    The correct answer is Divisional organization

    Key PointsDivisional structure:

    • According to this structure of an organization in organizing when the organization is a big or large organization and is producing more than one product, then the activities related to product A are grouped together or clubbed under one department and a similar thing is done for the rest of the products.
    • The divisional organizational structure organizes the activities of a business around geographical, market, or product and service groups.
    • A company organized on divisional lines could have operating groups for the United States or Europe, commercial customers, or the green widget product line.
    • Each such division contains a complete set of functions. Thus, the green widget division would handle its own accounting activities, sales and marketing, engineering, production, and so forth.
    • This approach is useful when decision-making should be clustered at the division level to react more quickly to local conditions.
    • The divisional structure is especially useful when a company has many regions, markets, and/or products.
    • However, it can cause higher total costs and can result in a number of small, quarreling fiefdoms within a company that does not necessarily work together for the good of the entire entity.

    Additional Information

    Example of the Divisional Organization Structure
    ABC International has just passed $250 million in sales, and its president decides to adopt a divisional organizational structure in order to better service its customers.

    Accordingly, he adopts the following structure:

    1. Commercial division. Focuses on all commercial customers, and has its own product development, production, accounting, and sales employees.
    2. Retail division. Focuses on all retail customers in the United States, and has its own product development, production, accounting, and sales employees.
    3. International division. Focuses on all retail customers outside of the United States. It shares product development and production facilities with the retail division, and has its own accounting and sales employees.
  • Question 5
    1 / -0.25
    For delegation to be effective it is essential that responsibility be accompanied with necessary
    Solution

    The correct answer is Authority

    Key Points Authority:

    • Authority refers to the right to take decisions in order to guide the activities of others.
    • Authority determines superior Subordinate relationship.
    • Laws and the rules and regulations of the organization restrict authority.
    • Authority flows downward.
    • The delegation of authority allows for the concentration of time on more important activities in an organization.
    • It provides a sense of responsibility, a chance to grow, and exercise initiatives to whom the authority is delegated.
    • One important point to remember is that transfer of authority from a superior to a subordinate does not mean a transfer of accountability.
    • The accountability for the tasks still resides with the superiors.
    • Delegation involves the distribution of authority for less important jobs to subordinates accompanied by no transfer of accountability.
  • Question 6
    1 / -0.25
    It refers to the number of subordinates that can be effectively managed by a superior,
    Solution

    The correct answer is Span of management

    Key Points

    • The Span of Management refers to the number of subordinates who can be managed efficiently by a superior.
    • The manager ha the group of subordinates who report him directly is called as the span of management.
    • The span of management, to a large extent gives shape to the organization structure.
    • The span of management refers to the number of subordinates that can be effectively managed by a superior.
    • This determines the levels of management in the structure.
    • A proper organization structure is essential to ensure a smooth flow of communication and better control over the operations of a business enterprise.
    • An organization structure provides the framework which enables the enterprise to function as an integrated unit by regulating and coordinating the responsibilities of individuals and departments.

    Additional Information

    For example:

    • Sunita opened her own travel agency. The success of her travel agency depends on a harmonious relationship between the customer and the employees of the travel agency.
    • In order to achieve this objective she has divided the entire work of the agency into three subheads based on the functions namely operations,
  • Question 7
    1 / -0.25
    Properly perform the assigned duty, is
    Solution

    The correct answer is Responsibility

    Key Points

    •  It is the obligation of a subordinate to properly perform the assigned duty.
    • When a superior issues orders, it becomes the responsibility of the subordinate to carry it out.
    • Responsibility is the obligation of a subordinate to perform properly the assigned duty.
    • If the subordinate has the responsibility for a job, he/ she must be given necessary authority to carry out that task.

    Additional Information Accountability:

    • Accountability implies being accountable for the final outcome.
    • When a superior assigns work to a subordinate, he/she is answerable to the superior for its outcome.

    Authority:

    • Authority refers to the right to take decisions in order to guide the activities of others.
    • Authority determines superior-subordinatenate relationship.
    • Laws and the rules and regulations of the organization are the strict authority.
    • Authority flows downward.
  • Question 8
    1 / -0.25
    Identify the type of organisational structure which facilitates occupational specialisation,
    Solution

    The correct answer is Functional structure

    Key Points

    • Every company needs an organizational structure, it basically defines the hierarchy of the company.
    • It defines who works for whom and who reports to who.
    • Without this structure, there would be chaos and inefficiency.
    • Now one of the most common forms of formal organization is the functional organizational structure.
    • In a functional organization structure, the entire organization is divided into smaller groups or departments based on specialized functions.
    • This allows for greater cohesiveness and efficiency in the work of the employees.
    • Since the work is divided into smaller sectors, so is the management.
    • The management is also sub-divided according to the type of work being done.
    • So every department has their own head or executive
    • He reporting structure can also differ from department to department.
       

    Additional Information

    Examples of departments in a functional organization structure

    1. A sales department,
    2. A production department,
    3. A human resources department,
    4. An information technology department,
    5. A marketing department, and
    6. A legal department.

    In some large corporations, these departments are stratified into different geographical areas. In smaller companies, they may simply occupy different areas of the same office building.

  • Question 9
    1 / -0.25
    Which structure of the organization is helpful in locating the inefficient employees?
    Solution

    The correct answer is Formal

    Key Points

    • The formal structure is embedded in the design of the organization and is seen as the pattern that should be followed by employees. 
    • It can be contrasted with the informal organizational structure, which is defined by patterns that are not officially recognized but that emerge from the daily interactions of employees.
    • In a formal organizational structure, the management and divisions within a company are typically written and explained so all employees understand how things work. 
    • This documentation may take the form of an organizational chart that visually depicts how each level of management works to prevent misunderstandings.
    • Staff employees are expected to implement decisions and processes made at the levels above them, and they are not usually solicited for their opinions or ideas about how the company should operate.
       

    Additional InformationFormal structure organizations usually have a hierarchical pyramid structure with a company

    1. President, CEO, and senior managers at the top;
    2. Mid-level managers in the middle; 
    3. Low-level managers at the bottom.

    Informal Organizational Structure:

    • In an informal organizational structure, your business doesn’t operate under the guidelines of a written document that spells out the rules, regulations, and chain of command.
    • Under this structure, your business operates by a system developed by your employees who have proven effective.
    • This structure relies on relationships forged between staff members, cooperation between teams, and communication that focuses on achieving shared goals.
    • Informal structures are unique for every company because they are based on the personalities of your employees and collaborative techniques developed over time.
  • Question 10
    1 / -0.25
    ___________ involves assigning responsibilities, grouping them into offices, delegating power, and distributing assets throughout the organization.
    Solution

    The correct answer is Organizing.

    Key PointsOrganizing is the managerial role that comes after planning.
    Process of Organizing:

    • Organizing involves assigning responsibilities, grouping them into offices, delegating power, and distributing assets throughout the organization.
    • During the organizational operations, administrators organize employees, assets, processes, and regulations to work with the plan's goals.

    The organizing process involves the following steps:

    1. Identification of Objectives and Activity Division
    2. Identifying and categorizing job tasks
    3. Activity grouping.
    4. Gathering Human as well as Material Resources
    5. Establishing Power and Responsibility
    6. Creating a Relationship Structure
    7. Establishing the Control Span and Decentralization
    8. Teamwork.
    9. Offering Physical Facilities as well as an Appropriate Environment
    10. Formation of a Structural Connection for Overall Control
    11. Examining and Reorganizing
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