Business Studies: CUET Mock Test - 5

Which of the following is not an importance of delegation of authority?

_________ is the process by which the manager brings order out of chaos, removes conflict among people over work or responsibility sharing and creates an environment suitable for teamwork.

A company has been registered under the Companies Act with an authorised share capital of ₹ 20,000 crore.
Its registered office is situated in Delhi and manufacturing unit in a backward district of Rajasthan. Its marketing department is situated in Bhopal. The company is manufacturing Fast Moving Consumer Goods (FMCG). Which type of organisation structure would suit the requirements of the company?

An electronic company manufacturing TV and Refrigerators wants to bring two new products Washing Machines and ACs in the market. For each product separate division is to be set up. The in-charge of washing machine division and AC division will be a female and a disabled person respectively. What type of Organisation structure is suitable for this company?

_______ cannot be delegated.

An Indian information technology company, presently employing 10,000 people, desires to expand its business in manufacturing, trading, etc. It wants to become a global company. To achieve its objectives, it started shifting from a centralised to a decentralised management system. Identify the management function being performed by the company to become a decentralised company.

“It refers to the systematic delegation of authority from top management to the lower level managers”. Mention it.

______ ensures that the heads of separate business units in the organisation are responsible for profit or loss of their unit and have authority over it.

Shrey and Co are running a shoe manufacturing company successfully.So, they planned to expand their business activities by adding leather bags, belts and garments. Which type of structure would you recommend?

Once departments have been formed, each of them is placed under the charge of General Manager.

An organisation can never be completely centralised or completely decentralised.

Aj anta Foods Ltd. is engaged in the trading of ‘Noodles’. It has its registere office in Kolkata, manufacturing unit ii Solan and marketing department at Delhi. Which type of organisational structure the company should adopt to achieve its target?

The authority once granted to the subordinates can be taken back but can’t be re-assigned.

If a manager desires to ensure that all work is accomplished, he must delegate authority.

Rishabh Shoes India Limited is dealing in the manufacturing of shoes and is doing well in the industry. It plans to diversify the product by including manufacturing of sports wears, sports goods and sports equipments.
Name the organisational structure it will have to adopt.

Shrey runs a door locks manufacturing factory. He wants to expand his business. For this, he wants to enter into manufacturing of locks for cars such as steering lock, wheel lock, gear lock, central car lock, etc., as an ancillary company. By doing this, his company will be able to provide many products to car manufacturers. Which type of organisation structure will he choose for his factory?

A company, which manufactures a popular brand of toys, has been enjoying a good market reputation. It has a functional organisational structure with separate departments for Production, Marketing, Finance, HRD and R&D. Lately to use its brand name and also to cash on to new business opportunities, it is thinking to diversify into the manufacturing of a new range of electronic toys for which a new market is emerging. Which organisational structure is adopted by the company?

Grouping of activities on the basis of functions is a part of

Which of the following is not an element of delegation?

The manager of Sudha Industries is overburdened with routine work and is unable to concentrate on core issues of the company. The overcome this problem, he entrusted some of his responsibility and authority to his immediate subordinate to share some of his routine work. Which concept of management is used by the manager?

For delegation to be effective, it is essential that responsibility be accompanied with necessary

The top level manager has asked the production manager to achieve a target production of 2000 units in a month.But he does not give him the authority and holds the decision-making powers. Identify the concept used in the case.

“ It refers to the right o f an Individual to command his/her subordinates and to take action within the scope of his/her position.” Which element of Delegation is being explained in the above statement?

Directions: There are two statements marked as Assertion (A) and Reason (R). Read the statements and choose the appropriate option from the options given below

Assertion (A): Organising provides a base for measuring performance and helps in fixing responsibility in case of poor performance.
Reason (R): In divisional structure, each department is accountable for its own profit or loss.

Directions: There are two statements marked as Assertion (A) and Reason (R). Read the statements and choose the appropriate option from the options given below

Assertion (A): Better control systems are being evolved such as balance score card and management information system.
Reason (R): In decentralisation, one of the challenges is the accountability of performance.

Directions: Read the following text and answer the questions on the basis of the same.

‘Journey Limited' is a car manufacturing company. The company have allocated the work among different people working in the organisation to ensure that no employee in the organisation feels overburdened. The company has further functionally grouped these jobs under different departments. Although, the company strictly follows the Principle of Scalar Chain, but this has led to a big disadvantage to the company. The manager in the company too realised that it
was becoming difficult for him to perform all the work alone. So, he shared some of it with three of his subordinates.

Q. Which function of management has been described above?

Directions: Read the following text and answer the questions on the basis of the same.

‘Journey Limited' is a car manufacturing company. The company have allocated the work among different people working in the organisation to ensure that no employee in the organisation feels overburdened. The company has further functionally grouped these jobs under different departments. Although, the company strictly follows the Principle of Scalar Chain, but this has led to a big disadvantage to the company. The manager in the company too realised that it
was becoming difficult for him to perform all the work alone. So, he shared some of it with three of his subordinates.

Q. “The company has further functionally grouped these jobs under different departments.” Which step of organising is highlighted in the given lines?

Directions: Read the following text and answer the questions on the basis of the same.
Pooja Arora is working as a General Manager in “Mehak Creations”. “Mehak Creations” is a FMCG company having non-similar products. She is a tough task master and expects strict compliance to the organisational rules and procedures from her subordinates.She believes in promoting self-reliance and confidence amongst her subordinates.
The company has recently opened its new branch in Singapore. The business environment is going to be quite different but as a General Manager, she is confident that the company will be able to modify its present structure and a revision of inter-relationship amongst managerial levels will pave the way for a smooth transition.

Q. Which concept of authority responsibility has been discussed in the above case?

Directions: Read the following text and answer the questions on the basis of the same.
Pooja Arora is working as a General Manager in “Mehak Creations”. “Mehak Creations” is a FMCG company having non-similar products. She is a tough task master and expects strict compliance to the organisational rules and procedures from her subordinates.She believes in promoting self-reliance and confidence amongst her subordinates.
The company has recently opened its new branch in Singapore. The business environment is going to be quite different but as a General Manager, she is confident that the company will be able to modify its present structure and a revision of inter-relationship amongst managerial levels will pave the way for a smooth transition.

Q. Identify the importance of organising, discussed above, will pave the way to success of organisation.

Directions: Read the following text and answer the questions on the basis of the same.
Infocom has diversified itself into several product lines: Tele-communications, Engineering, Financial services. Each subsidiary is self-sufficient with their-own administrative functions, propagating the belief that people can assume the responsibility for the effective implementation of their decisions and should be given autonomy. This has reduced the need for direct supervision by superiors, has promoted flexibility, initiative and faster decision-making. The orders of customers are never delayed, as a result of good policy decisions of top management. The philosophy of the top management awards greater autonomy to the lower level of management.

Q. Identify a suitable framework for the company within which the managerial and operating tasks are to be performed.

The main purpose of  ______ is to reduce the work load of managers.

Which statement is not correct, with respect to ‘organisation structure’?

Organisation leads to optimal utilisation of resources which helps in

The main purpose of ______ is involvement of all the employees working at different levels.

______ is a framework within which organisational activities are performed.

To make the annual function of the school successful, the principal of the school divided all the activities into task groups each dealing with a specific area like rehearsals, decoration, stage management, refreshments, etc. Each group was placed under the overall supervision of a senior teacher.
Which step of organising is being discussed here?

Kiran industries is a company manufacturing office furniture. The company chose to diversify its operations to improve its growth potential and increase market share. As the project was important many alternatives were generated for the purpose and were thoroughly discussed amongst the members of the organisation. After evaluating the various alternatives Sukhvinder, the managing director of the company decided that they should add ‘Home Interiors and Furnishings’ as a new line of business activity. Name the framework, which the diversified organisation should adopt, to enable it to cope with the emerging complexity?