Business Studies: CUET Mock Test - 5 - CUET MCQ

The step of organising being discussed here relates to the clarity of authority and responsibilities within the company.

• Co-ordination: All departments work together towards the common goal of manufacturing.
• Interlinked Efforts: Different roles and functions are connected to achieve daily targets.
• Authority and Responsibility: Clear distinctions are made regarding who reports to whom.
• Clarity: Employees understand their roles and reporting structure.

Taylor’s Functional Foremanship involves a structured approach to shop floor management. First, a Planning Incharge is appointed to oversee planning functions, followed by a Production Incharge for execution. Then, four specialists (e.g., instruction card clerk, route clerk) are designated under the Planning Incharge, and four specialists (e.g., speed boss, gang boss) are assigned under the Production Incharge. The correct sequence is (A), (B), (C), (D). Hence, Option C is the correct choice.

Considering the geographical spread and diverse functions of the company, a divisional structure would be a suitable choice for the organization. This structure allows the company to organize its operations based on geographical location or product lines.

In this case, the company has distinct locations for its registered office, manufacturing unit, and marketing department in different regions. A divisional structure would allow each division (e.g., Delhi, Rajasthan, Bhopal) to have its own functional departments such as production, marketing, and administration, tailored to the specific needs and challenges of that region.

Therefore, the correct answer is:

**2. Divisional structure**

This would help the company efficiently manage its operations across different locations and functions while ensuring coordination and focus on the specific requirements of each division.

The company should adopt a divisional structure for the following reasons:

• Each division focuses on a specific product, allowing for dedicated management and resources.
• Having separate divisions for washing machines and ACs enables tailored strategies and operations.
• The structure supports the appointment of a female leader for the washing machine division and a disabled person for the AC division, promoting inclusivity.
• This approach enhances flexibility and responsiveness to market changes and customer needs.

Explanation: Responsibility is the commitment of a subordinate to perform the appointed duty appropriately. It emerges from a superior-subordinate relationship on the grounds that the subordinate will undoubtedly perform the duty assigned to him by his boss. Obligation streams upward.

Being accountable means remaining by actions, decisions, and the general prosperity of projects or tasks. Accountability is likewise an administration cycle that guarantees workers respond to their boss for their activities and that managers act mindfully also.

Responsibility and accountability can not be delegated to the employees by their direct superiors.

The company is performing the organizing function by restructuring its management system from centralised to decentralised. Organising involves arranging resources, defining authority relationships, and allocating responsibilities to achieve objectives, which aligns with the shift to decentralisation.

For Shrey and Co's expansion into leather bags, belts, and garments, a suitable organisational structure would be essential. Here are the recommended options:

• Divisional Structure: This structure allows for greater flexibility, as it can be organised by product lines (e.g., shoes, bags, belts, garments).
• Advantages:
  • Each division can focus on its specific market, enhancing expertise.
  • Improved responsiveness to market changes.
  • Clear accountability for performance within each division.

In conclusion, adopting a divisional structure would facilitate Shrey and Co's growth by allowing each product line to operate effectively while maintaining overall company cohesion.

Departments are typically placed under departmental heads or managers specific to their functions (e.g., production manager, marketing manager), not a single General Manager, who usually oversees broader operations or the entire organization.

His observation of women working in self-help groups
Dharamveer was inspired by his observation of women in Rajasthan making gooseberry laddoos manually, which led him to innovate a more efficient processing machine.

Technical difficulties, such as overheating
Dharamveer faced the issue of overheating in his first prototypes, which he had to solve before successfully completing his machine.

 A multipurpose processing machine
Dharamveer designed a multipurpose machine that could process fruits and vegetables, making tasks like grating, juicing, and pulverizing easier.

It helped women in the unorganised sector by increasing efficiency
The machine helped improve the efficiency of women workers in the unorganised sector, making fruit and vegetable processing easier and safer.

The power of perseverance and innovation despite challenges
Dharamveer's story highlights how perseverance and innovation, despite limited education and resources, can lead to successful entrepreneurial ventures.

• 1 - B: "Science, Not Rule of Thumb" emphasizes using scientific methods and analysis instead of relying on arbitrary practices.
• 2 - A: "Harmony, Not Discord" focuses on fostering cooperation between workers and management to avoid conflicts and promote better productivity.
• 3 - C: "Development of Each and Every Person" focuses on training workers to perform to the best of their abilities, ensuring growth and efficiency.
• 4 - D: Standardization of tools ensures that processes follow a consistent and efficient method, reducing variation and enhancing quality.

An organisation cannot be entirely centralised or decentralised.

This statement reflects the reality of organisational structures. Here’s why:

• Hybrid models: Most organisations adopt a combination of centralised and decentralised elements, allowing flexibility and efficiency.
• Adaptability: The need to respond to local conditions requires a degree of decentralisation, even in otherwise centralised systems.
• Resource distribution: Centralisation can streamline decision-making, but decentralisation empowers teams to act quickly and effectively.

In conclusion, the balance between centralisation and decentralisation is essential for effective management.

To achieve its targets, Aj Anta Foods Ltd. should consider adopting the following organisational structure:

• Divisional Structure: This approach could be beneficial given the company's operations across different locations and functions.
• It allows for better focus on specific markets, such as different regions (Kolkata, Solan, Delhi).
• Each division can operate semi-autonomously, enhancing responsiveness to local market demands.
• This structure supports efficient resource allocation and prioritises the unique needs of each division.

• A → 2: Top management is responsible for the overall direction and long-term survival of the organization.
• B → 1: Middle management implements the strategies and policies set by top management and ensures their execution.
• C → 3: Supervisory management directly supervises the workforce and oversees day-to-day operations.
• D → 4: Managerial efficiency is about optimizing resources and reducing costs while improving productivity.

To ensure all work is completed, a manager must delegate authority.

• Delegating authority allows managers to distribute tasks effectively.
• This empowers team members and enhances productivity.
• It enables managers to focus on higher-level responsibilities.
• Effective delegation leads to better team performance and morale.

Rishabh Shoes India Limited is planning to diversify its product range by adding sports wear, sports goods, and sports equipment. To effectively manage this diversification, the company should consider adopting a specific organisational structure.

The most suitable structure for this scenario is a divisional structure due to the following reasons:

• Each product line is distinct, requiring tailored strategies and management.
• A divisional structure allows for greater focus on individual markets, enhancing responsiveness to customer needs.
• This structure supports the allocation of resources effectively across different product categories.

In summary, adopting a divisional structure will enable Rishabh Shoes India Limited to manage its diverse product offerings efficiently, while addressing the unique demands of each segment.

Shrey runs a door locks manufacturing factory and aims to expand his business by entering the car lock manufacturing sector. To achieve this, he needs to choose an appropriate organisational structure for his factory. Here are some options he could consider:

• Informal Structure: This type lacks formal hierarchy and relies on personal relationships and informal communication.
• Formal Structure: A well-defined hierarchy that establishes clear roles and responsibilities, ensuring efficient operations.
• Divisional Structure: Organises the company into semi-autonomous divisions based on products or markets, ideal for diversified operations.
• Functional Structure: Groups employees based on their specific functions or skills, promoting efficiency within specialised areas.

For Shrey's expansion into car locks, a divisional structure may be the most effective choice. This would allow him to:

• Focus on specific product lines like steering locks or gear locks.
• Adapt quickly to the needs of different car manufacturers.
• Encourage innovation within each product division.

In conclusion, selecting the right structure is crucial for supporting Shrey's expansion strategy and ensuring the success of his new product lines.

D: Divisional structure

Explanation:

• The company currently has a functional structure, which is mentioned in the question, with separate departments for Production, Marketing, Finance, HRD, and R&D.

• However, since the company is planning to diversify into a new range of electronic toys, it is likely adopting a divisional structure. This structure allows for flexibility in handling different product lines or markets, especially when diversifying into a new business area. Each division (like the new electronic toys division) would operate more independently while still benefiting from the overall corporate structure.

• Functional structure remains the existing structure but does not fully explain the diversification and the creation of new divisions for specific products.

Grouping activities based on functions is characteristic of a:

• Functional organisation: This structure focuses on grouping tasks by specific functions, such as marketing, finance, and production.
• It promotes efficiency by allowing specialists to work together, improving coordination and expertise.
• This type of organisation is commonly found in large companies where tasks can be standardised.

The manager of Sudha Industries is overwhelmed with daily tasks and cannot focus on essential company issues. To address this challenge, he has delegated some of his responsibilities and authority to a subordinate, allowing for a better distribution of routine work.

• Delegation involves assigning tasks and responsibilities to others.
• This helps managers concentrate on more critical aspects of the business.
• By sharing workload, it promotes efficiency and teamwork.
• Effective delegation can lead to improved morale and productivity among employees.

• 1 - B: Strategic plans focus on setting long-term organizational goals and allocating resources to achieve them.
• 2 - C: Single-use plans are used for one-time events or specific projects that are not recurring.
• 3 - D: Standing plans are for ongoing activities that are regularly performed, ensuring smooth operations.
• 4 - A: Operational plans focus on managing the day-to-day activities necessary to keep the business running efficiently.

For effective delegation, it is crucial that responsibility comes with the necessary

• Authority: Empower individuals to make decisions.
• Resources: Ensure access to adequate tools and support.
• Incentives: Motivate through recognition and rewards.

Providing both responsibility and the right resources can lead to successful delegation and improved team performance.