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Directions: Read the following passage and answer the question that follows.
Few entrepreneurs start out with both a well-defined strategy and a plan for developing an organisation that can achieve that strategy. In fact, many start-ups, which don't have formal control systems, decision-making processes, or clear roles for employees, can hardly be called organisations. The founders of such ventures improvise. They perform most of the important functions themselves and make decisions as they go along.
Informality is fine as long as entrepreneurs aren't interested in building a large, sustainable business. Once that becomes their goal, however, they must start developing formal systems and processes. Such organisational infrastructure allows a venture to grow, but at the same time, it increases overhead and may slow down decision-making. How much infrastructure is enough and how much is too much? To match investments in infrastructure to the requirements of a venture's strategy, entrepreneurs must consider the degree to which their strategy depends on the following:
As a young venture grows, its founders will probably need to delegate many of the tasks that they used to perform. To get employees to perform those tasks competently and diligently, the founders may need to establish mechanisms to monitor employees and standard operating procedures and policies. Consider an extreme example. Randy and Debbi Fields pass along their skills and knowledge through software that tells employees in every Mrs. Fields Cookies shop exactly how to make cookies and operate the business. The software analyses data such as local weather conditions and the day of the week to generate hourly instructions about such matters as which cookies to bake, when to offer free samples, and when to reorder chocolate chips.
Telling employees how to do their jobs, however, can stifle initiative. Companies that require frontline employees to act quickly and resourcefully might decide to focus more on outcomes than on behaviour, using control systems that set performance targets for employees, compare results against objectives and provide appropriate incentives.
In a small-scale start-up, everyone does a little bit of everything but as a business grows and tries to achieve economies of scale and scope, employees must be assigned clearly defined roles and grouped into appropriate organisational units. An all purpose workshop employee, for example, might become a machine tool operator, who is part of a manufacturing unit. Specialised activities need to be integrated by, for example, creating the position of a general manager, who coordinates the manufacturing and marketing functions, or through systems that are designed to measure and reward employees for cross-functional cooperation. Poor integrative mechanisms are reasons why geographic expansion, vertical integration, broadening of product lines and other strategies to achieve economies of scale and scope often fail.
Cash-strapped businesses that are trying to grow need good systems to forecast and monitor the availability of funds. Outside sources of capital such as banks often refuse to advance funds to companies with weak controls and organisational infrastructure.
If entrepreneurs hope to build a company that they can sell, they must start preparing early. Public markets and potential acquirers like to see an extended history of well-kept financial records and controls to reassure them of the soundness of the business.
Q. None of the following statements can be inferred from the passage EXCEPT that:
  • a)
    Clear cut positions for employees is a prerequisite for any small business.
  • b)
    Establishing working procedures is a standard rule for small businesses.
  • c)
    Prediction of results is beneficial.
  • d)
    Weak organisational edifice needs to be dismantled and restructured to grow into a bigger organisation.
Correct answer is option 'D'. Can you explain this answer?
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Most Upvoted Answer
Directions:Read the following passage and answer the question that fol...
Understanding the Passage
The passage discusses the evolution of start-ups as they grow and the need for formal organizational structures and processes. It highlights the challenges of maintaining flexibility and innovation while implementing necessary controls.
Why Option D is Correct
The correct answer is option D: "Weak organisational edifice needs to be dismantled and restructured to grow into a bigger organisation." This can be inferred from the passage for several reasons:
1. Importance of Formal Structures
- As businesses grow, the lack of formal control systems and clear roles can hinder their ability to expand sustainably.
- The passage emphasizes that informal structures are suitable only for small ventures, but growth necessitates a shift to formal systems.
2. Need for Integration
- The text discusses how poor integrative mechanisms can lead to failures in expansion efforts, indicating that a weak organizational structure must be addressed.
- The need for defined roles and coordination among functions implies that existing structures must be improved or restructured.
3. Financial Oversight
- Cash-strapped businesses need robust systems to monitor funds, reinforcing the idea that weak organizational frameworks can impede growth and attract funding.
- The mention of external funding sources requiring solid controls supports the notion that restructuring is essential for growth.
Why Other Options Are Incorrect
- Option A: "Clear cut positions for employees is a prerequisite for any small business" is not supported, as the passage indicates that informality can work for small start-ups.
- Option B: "Establishing working procedures is a standard rule for small businesses" is also incorrect; the passage states that many start-ups begin without formal procedures.
- Option C: "Prediction of results is beneficial" is too vague and not explicitly stated in the context of the need for restructuring.
In summary, option D is the only statement that can be logically inferred from the passage regarding the necessity of restructuring weak organizational frameworks for growth.
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Community Answer
Directions:Read the following passage and answer the question that fol...
1. Incorrect. The author has advocated 'clear cut positions' and 'establishing work procedures' for big businesses (not small businesses). So, (1) cannot be the answer.
2. Incorrect. The author has advocated 'clear cut positions' and 'establishing work procedures' for big businesses (not small businesses). So, (2) cannot be the answer.
3. Incorrect. Prediction of results being beneficial is nowhere discussed in the passage. So, (3) cannot be the answer.
4. Correct. From paragraph 5, the line 'Poor integrative mechanisms are reasons why geographic expansion, vertical integration, broadening of product lines and other strategies to achieve economies of scale and scope often fail.' justifies the answer. Through the passage the author brings to the fore the fact that as small organisations grow into bigger organisations, they need a proper system. This is clearly implied in option 4, hence the answer.
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InstructionsRead the passage carefully and answer the questions givenMore and more companies, government agencies, educational institutions and philanthropic organisations are today in the grip of a new phenomenon: ‘metric fixation’. The key components of metric fixation are the belief that it is possible -and desirable - to replace professional judgment (acquired through personal experience and talent) with numerical indicators of comparative performance based upon standardised data (metrics); and that the best way to motivate people within these organisations is by attaching rewards and penalties to their measured performance.The rewards can be monetary, in the form of pay for performance, say, or reputational, in the form of college rankings, hospital ratings, surgical report cards and so on. But the most dramatic negative effect of metric fixation is its propensity to incentivise gaming: that is, encouraging professionals to maximise the metrics in ways that are at odds with the larger purpose of the organisation. If the rate of major crimes in a district becomes the metric according to which police officers are promoted, then some officers will respond by simply not recording crimes or downgrading them from major offences to misdemeanours. Or take the case of surgeons. When the metrics of success and failure are made public - affecting their reputation and income - some surgeons will improve their metric scores by refusing to operate on patients with more complex problems, whose surgical outcomes are more likely to be negative. Who suffers? The patients who don’t get operated upon.When reward is tied to measured performance, metric fixation invites just this sort of gaming. But metric fixation also leads to a variety of more subtle unintended negative consequences. These include goal displacement, which comes in many varieties: when performance is judged by a few measures, and the stakes are high (keeping one’s job, getting a pay rise or raising the stock price at the time that stock options are veste d), people focus on satisfying those measures -often at the expense of other, more important organisational goals that are not measured. The best-known example is ‘teaching to the test’, a widespread phenomenon that has distorted primary and secondary education in the United States since the adoption of the No Child Left Behind Act of 2001.Short-termism is another negative. Measured performance encourages what the US sociologist Robert K Merton in 1936 called ‘the imperious immediacy of interests … where the actor’s paramount concern with the foreseen immediate consequences excludes consideration of further or other consequences’. In short, advancing short-term goals at the expense of long-range considerations. This problem is endemic to publicly traded corporations that sacrifice long-term research and development, and the development of their staff, to the perceived imperatives of the quarterly report.To the debit side of the ledger must also be added the transactional costs of metrics: the expenditure of employee time by those tasked with compiling and processing the metrics in the first place - not to mention the time required to actually read them. . . .Q.What is the main idea that the author is trying to highlight in the passage?

Read the passage carefully and answer the questions given More and more companies, government agencies, educational institutions and philanthropic organisations are today in the grip of a new phenomenon: ‘metric fixation’. The key components of metric fixation are the belief that it is possible - and desirable - to replace professional judgment (acquired through personal experience and talent) with numerical indicators of comparative performance based upon standardised data (metrics); and that the best way to motivate people within these organisations is by attaching rewards and penalties to their measured performance.The rewards can be monetary, in the form of pay for performance, say, or reputational, in the form of college rankings, hospital ratings, surgical report cards and so on. But the most dramatic negative effect of metric fixation is its propensity to incentivise gaming: that is, encouraging professionals to maximise the metrics in ways that are at odds with the larger purpose of the organisation. If the rate of major crimes in a district becomes the metric according to which police officers are promoted, then some officers will respond by simply not recording crimes or downgrading them from major offences to misdemeanours. Or take the case of surgeons. When the metrics of success and failure are made public - affecting their reputation and income - some surgeons will improve their metric scores by refusing to operate on patients with more complex problems, whose surgical outcomes are more likely to be negative. Who suffers? The patients who don’t get operated upon.When reward is tied to measured performance, metric fixation invites just this sort of gaming. But metric fixation also leads to a variety of more subtle unintended negative consequences. These include goal displacement, which comes in many varieties: when performance is judged by a few measures, and the stakes are high (keeping one’s job, getting a pay rise or raising the stock price at the time that stock options are veste d), people focus on satisfying those measures - often at the expense of other, more important organisational goals that are not measured. The best-known example is ‘teaching to the test’, a widespread phenomenon that has distorted primary and secondary education in the United States since the adoption of the No Child Left Behind Act of 2001.Short-termism is another negative. Measured performance encourages what the US sociologist Robert K Merton in 1936 called ‘the imperious immediacy of interests … where the actor’s paramount concern with the foreseen immediate consequences excludes consideration of further or other consequences’. In short, advancing short-term goals at the expense of long-range considerations. This problem is endemic to publicly traded corporations that sacrifice long-term research and development, and the development of their staff, to the perceived imperatives of the quarterly report.Q. What is the main idea that the author is trying to highlight in the passage?

The passage given below is followed by a question. Choose the most appropriate answer to each question.Is anyone a born entrepreneur, a born leader or born to win? I believe everyone is born to win but you have to make winning a habit. Think of this: a quitter never wins, a winner never quits. I have been privileged to share the dream and journey of many entrepreneurs. A few traits are habits with all of them. A winner is a believer. Belief in oneself and ones convictions that inner voice of core strength to pursue dreams despite difficulties.Along the way everyone they meet gets swept up in their dreams and aspirations. This belief is rooted in a bigger purpose than self- satisfaction. Winners are great listeners. They learn continuously; they take inputs; they dont think they have all the answers; and they are confident to have the humility to hear other points of view.Listening is about striving for comprehension and making oneself open to possibilities. Winners value self-development. They constantly challenge themselves and set aggressive goals and often surpass expectations. They make organisational learning a priority. Winners are unstoppable. They dont count hurdles. They dont brood about failures and risks. They are activators.They have a clear compass on why they keep trying and what they set out to achieve. Hence they have the edge to get up, dust themselves off, and set out again and again.Winners are decisive. They chart the course and make choices all the time while being transparent and suffused with a clarity of purpose. They are less prone to procrastination. They are resilient to change and very effective in communicating their decisions. Another word for this is nimbleness, and in these times, this quality is essential to innovate.Is all this too much to ask? Of late, too often, I read are we expecting toomuch from young entrepreneurs. Was too much expected of Alexander when he became king at 20 and set out to conquer the world? Or of Akbar who inherited the empire at the age of 14? Being a founder, building a high-velocity organisation is no doubt high-pressure, but isnt it a choice? Isnt competing in the Olympics different from playing cricket in your backyard?Over the years, I have a more nuanced take about winning itself.Winning doesnt always mean being first; winning means you are doing better than you have done before.Q.Which of the following agrees with the authors perception of young entrepreneurs?

Directions: Read the passage carefully and answer the questions which follow.Although broad generalization always oversimplify complex realities, we find numerous truths in the contrast between hierarchical, industrial manufacturing firms that dominated most of the twentieth century and today's service-based and knowledge-sensitive organisations. When industry meant repeatedly carrying out standard, well-defined tasks and workers were seen metaphorically (and sometimes literally) as part of a machine, progress could still be made when the social networks and relationships of individual employees were ignored or discouraged. In fact, those firms strongly depended on social capital and sometimes suffered from lack of it. Without some level of trust, respect, and generalised reciprocity, coordinated work of any kind is hard to accomplish. Still, as Henry Ford has commented, a certain rough logic lies behind treating people like cogs in a machine when you only expect and want them to do machine-like work.But very little of the work of today's knowledge firm is repetitive or mechanical. It requires responsiveness, inventiveness, collaboration and attention. Judgement, persuasiveness, shared decisions, the pooling of knowledge, and the creative sparks people strike off one another depend on engagement with the work and one another, on the commitment that makes one genuinely a member of an organisation rather than simply an "employee". Although we ourselves sometimes fall into the trap of talking about "employers" and "employees" - the users and the used - those terms really belong to the industrial-age modal and are inappropriate to the kind of work and working relationships we consider here. Today's most economically productive work is largely voluntary, in the sense that doing it well calls for a willing engagement of the whole self in the task. "Going through the motions" is insufficient when the motions are not prescribed but change as you go along. In our view, the firm is neither a machine with each cog firmly in place performing its clearly defined task nor an unorganized (or self-organising) flock of opportunistic entrepreneurs pursuing their individual destinies. It is - it should be - a social organisation of people willingly engaged in a joint enterprise.Q. The central idea of the passage relates to

Directions: Read the passage carefully and answer the questions which follow. Although broad generalization always over-simplifies complex realities, we find numerous truths in the contrast between hierarchical, industrial manufacturing firms that dominated most of the twentieth century and today's service-based and knowledge-sensitive organisations. When industry meant repeatedly carrying out standard, well defined tasks and workers were seen metaphorically (and sometimes literally) as part of a machine, progress could still be made when the social networks and relationships of individual employees were ignored or discouraged. In fact, those firms strongly depended on social capital and sometimes suffered from lack of it. Without some level of trust, respect, and generalised reciprocity, coordinated work of any kind is hard to accomplish. Still, as Henry Ford has commented, a certain rough logic lies behind treating people like cogs in a machine when you only expect and want them to do machine-like work. But very little of the work of today's knowledge firm is repetitive or mechanical. It requires responsiveness, inventiveness, collaboration and attention. Judgement, persuasiveness, shared decisions, the pooling of knowledge, and the creative spark people strike off one another depend on engagement with the work and one another, on the commitment that makes one genuinely a member of an organisation rather than simply an "employee". Although we ourselves sometimes fall into the trap of talking about "employers" and "employees" - the users and the used - those terms really belong to the industrial age modal and are inappropriate to the kind of work and working relationships we consider here. Today's most economically productive work is largely voluntary, in the sense that doing it well calls for a willing engagement of the whole self in the task. "Going through the motions" is insufficient when the motions are not prescribed but change as you go along. In our view, the firm is neither a machine with each cog firmly in place performing its clearly defined task nor an unorganized (or self-organising) flock of opportunistic entrepreneurs pursuing their individual destinies. It is - it should be - a social organisation of people willingly engaged in a joint enterprise.The central idea of the passage relates to

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Directions:Read the following passage and answer the question that follows.Few entrepreneurs start out with both a well-defined strategy and a plan for developing an organisation that can achieve that strategy. In fact, many start-ups, which dont have formal control systems, decision-making processes, or clear roles for employees, can hardly be called organisations. The founders of such ventures improvise. They perform most of the important functions themselves and make decisions as they go along.Informality is fine as long as entrepreneurs arent interested in building a large, sustainable business. Once that becomes their goal, however, they must start developing formal systems and processes. Such organisational infrastructure allows a venture to grow, but at the same time, it increases overhead and may slow down decision-making. How much infrastructure is enough and how much is too much? To match investments in infrastructure to the requirements of a ventures strategy, entrepreneurs must consider the degree to which their strategy depends on the following:As a young venture grows, its founders will probably need to delegate many of the tasks that they used to perform. To get employees to perform those tasks competently and diligently, the founders may need to establish mechanisms to monitor employees and standard operating procedures and policies. Consider an extreme example. Randy and Debbi Fields pass along their skills and knowledge through software that tells employees in every Mrs. Fields Cookies shop exactly how to make cookies and operate the business. The software analyses data such as local weather conditions and the day of the week to generate hourly instructions about such matters as which cookies to bake, when to offer free samples, and when to reorder chocolate chips.Telling employees how to do their jobs, however, can stifle initiative. Companies that require frontline employees to act quickly and resourcefully might decide to focus more on outcomes than on behaviour, using control systems that set performance targets for employees, compare results against objectives and provide appropriate incentives.In a small-scale start-up, everyone does a little bit of everything but as a business grows and tries to achieve economies of scale and scope, employees must be assigned clearly defined roles and grouped into appropriate organisational units. An all purpose workshop employee, for example, might become a machine tool operator, who is part of a manufacturing unit. Specialised activities need to be integrated by, for example, creating the position of a general manager, who coordinates the manufacturing and marketing functions, or through systems that are designed to measure and reward employees for cross-functional cooperation. Poor integrative mechanisms are reasons why geographic expansion, vertical integration, broadening of product lines and other strategies to achieve economies of scale and scope often fail.Cash-strapped businesses that are trying to grow need good systems to forecast and monitor the availability of funds. Outside sources of capital such as banks often refuse to advance funds to companies with weak controls and organisational infrastructure.If entrepreneurs hope to build a company that they can sell, they must start preparing early. Public markets and potential acquirers like to see an extended history of well-kept financial records and controls to reassure them of the soundness of the business.Q.None of the following statements can be inferred from the passage EXCEPT that:a)Clear cut positions for employees is a prerequisite for any small business.b)Establishing working procedures is a standard rule for small businesses.c)Prediction of results is beneficial.d)Weak organisational edifice needs to be dismantled and restructured to grow into a bigger organisation.Correct answer is option 'D'. Can you explain this answer?
Question Description
Directions:Read the following passage and answer the question that follows.Few entrepreneurs start out with both a well-defined strategy and a plan for developing an organisation that can achieve that strategy. In fact, many start-ups, which dont have formal control systems, decision-making processes, or clear roles for employees, can hardly be called organisations. The founders of such ventures improvise. They perform most of the important functions themselves and make decisions as they go along.Informality is fine as long as entrepreneurs arent interested in building a large, sustainable business. Once that becomes their goal, however, they must start developing formal systems and processes. Such organisational infrastructure allows a venture to grow, but at the same time, it increases overhead and may slow down decision-making. How much infrastructure is enough and how much is too much? To match investments in infrastructure to the requirements of a ventures strategy, entrepreneurs must consider the degree to which their strategy depends on the following:As a young venture grows, its founders will probably need to delegate many of the tasks that they used to perform. To get employees to perform those tasks competently and diligently, the founders may need to establish mechanisms to monitor employees and standard operating procedures and policies. Consider an extreme example. Randy and Debbi Fields pass along their skills and knowledge through software that tells employees in every Mrs. Fields Cookies shop exactly how to make cookies and operate the business. The software analyses data such as local weather conditions and the day of the week to generate hourly instructions about such matters as which cookies to bake, when to offer free samples, and when to reorder chocolate chips.Telling employees how to do their jobs, however, can stifle initiative. Companies that require frontline employees to act quickly and resourcefully might decide to focus more on outcomes than on behaviour, using control systems that set performance targets for employees, compare results against objectives and provide appropriate incentives.In a small-scale start-up, everyone does a little bit of everything but as a business grows and tries to achieve economies of scale and scope, employees must be assigned clearly defined roles and grouped into appropriate organisational units. An all purpose workshop employee, for example, might become a machine tool operator, who is part of a manufacturing unit. Specialised activities need to be integrated by, for example, creating the position of a general manager, who coordinates the manufacturing and marketing functions, or through systems that are designed to measure and reward employees for cross-functional cooperation. Poor integrative mechanisms are reasons why geographic expansion, vertical integration, broadening of product lines and other strategies to achieve economies of scale and scope often fail.Cash-strapped businesses that are trying to grow need good systems to forecast and monitor the availability of funds. Outside sources of capital such as banks often refuse to advance funds to companies with weak controls and organisational infrastructure.If entrepreneurs hope to build a company that they can sell, they must start preparing early. Public markets and potential acquirers like to see an extended history of well-kept financial records and controls to reassure them of the soundness of the business.Q.None of the following statements can be inferred from the passage EXCEPT that:a)Clear cut positions for employees is a prerequisite for any small business.b)Establishing working procedures is a standard rule for small businesses.c)Prediction of results is beneficial.d)Weak organisational edifice needs to be dismantled and restructured to grow into a bigger organisation.Correct answer is option 'D'. Can you explain this answer? for CAT 2024 is part of CAT preparation. The Question and answers have been prepared according to the CAT exam syllabus. Information about Directions:Read the following passage and answer the question that follows.Few entrepreneurs start out with both a well-defined strategy and a plan for developing an organisation that can achieve that strategy. In fact, many start-ups, which dont have formal control systems, decision-making processes, or clear roles for employees, can hardly be called organisations. The founders of such ventures improvise. They perform most of the important functions themselves and make decisions as they go along.Informality is fine as long as entrepreneurs arent interested in building a large, sustainable business. Once that becomes their goal, however, they must start developing formal systems and processes. Such organisational infrastructure allows a venture to grow, but at the same time, it increases overhead and may slow down decision-making. How much infrastructure is enough and how much is too much? To match investments in infrastructure to the requirements of a ventures strategy, entrepreneurs must consider the degree to which their strategy depends on the following:As a young venture grows, its founders will probably need to delegate many of the tasks that they used to perform. To get employees to perform those tasks competently and diligently, the founders may need to establish mechanisms to monitor employees and standard operating procedures and policies. Consider an extreme example. Randy and Debbi Fields pass along their skills and knowledge through software that tells employees in every Mrs. Fields Cookies shop exactly how to make cookies and operate the business. The software analyses data such as local weather conditions and the day of the week to generate hourly instructions about such matters as which cookies to bake, when to offer free samples, and when to reorder chocolate chips.Telling employees how to do their jobs, however, can stifle initiative. Companies that require frontline employees to act quickly and resourcefully might decide to focus more on outcomes than on behaviour, using control systems that set performance targets for employees, compare results against objectives and provide appropriate incentives.In a small-scale start-up, everyone does a little bit of everything but as a business grows and tries to achieve economies of scale and scope, employees must be assigned clearly defined roles and grouped into appropriate organisational units. An all purpose workshop employee, for example, might become a machine tool operator, who is part of a manufacturing unit. Specialised activities need to be integrated by, for example, creating the position of a general manager, who coordinates the manufacturing and marketing functions, or through systems that are designed to measure and reward employees for cross-functional cooperation. Poor integrative mechanisms are reasons why geographic expansion, vertical integration, broadening of product lines and other strategies to achieve economies of scale and scope often fail.Cash-strapped businesses that are trying to grow need good systems to forecast and monitor the availability of funds. Outside sources of capital such as banks often refuse to advance funds to companies with weak controls and organisational infrastructure.If entrepreneurs hope to build a company that they can sell, they must start preparing early. Public markets and potential acquirers like to see an extended history of well-kept financial records and controls to reassure them of the soundness of the business.Q.None of the following statements can be inferred from the passage EXCEPT that:a)Clear cut positions for employees is a prerequisite for any small business.b)Establishing working procedures is a standard rule for small businesses.c)Prediction of results is beneficial.d)Weak organisational edifice needs to be dismantled and restructured to grow into a bigger organisation.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Directions:Read the following passage and answer the question that follows.Few entrepreneurs start out with both a well-defined strategy and a plan for developing an organisation that can achieve that strategy. In fact, many start-ups, which dont have formal control systems, decision-making processes, or clear roles for employees, can hardly be called organisations. The founders of such ventures improvise. They perform most of the important functions themselves and make decisions as they go along.Informality is fine as long as entrepreneurs arent interested in building a large, sustainable business. Once that becomes their goal, however, they must start developing formal systems and processes. Such organisational infrastructure allows a venture to grow, but at the same time, it increases overhead and may slow down decision-making. How much infrastructure is enough and how much is too much? To match investments in infrastructure to the requirements of a ventures strategy, entrepreneurs must consider the degree to which their strategy depends on the following:As a young venture grows, its founders will probably need to delegate many of the tasks that they used to perform. To get employees to perform those tasks competently and diligently, the founders may need to establish mechanisms to monitor employees and standard operating procedures and policies. Consider an extreme example. Randy and Debbi Fields pass along their skills and knowledge through software that tells employees in every Mrs. Fields Cookies shop exactly how to make cookies and operate the business. The software analyses data such as local weather conditions and the day of the week to generate hourly instructions about such matters as which cookies to bake, when to offer free samples, and when to reorder chocolate chips.Telling employees how to do their jobs, however, can stifle initiative. Companies that require frontline employees to act quickly and resourcefully might decide to focus more on outcomes than on behaviour, using control systems that set performance targets for employees, compare results against objectives and provide appropriate incentives.In a small-scale start-up, everyone does a little bit of everything but as a business grows and tries to achieve economies of scale and scope, employees must be assigned clearly defined roles and grouped into appropriate organisational units. An all purpose workshop employee, for example, might become a machine tool operator, who is part of a manufacturing unit. Specialised activities need to be integrated by, for example, creating the position of a general manager, who coordinates the manufacturing and marketing functions, or through systems that are designed to measure and reward employees for cross-functional cooperation. Poor integrative mechanisms are reasons why geographic expansion, vertical integration, broadening of product lines and other strategies to achieve economies of scale and scope often fail.Cash-strapped businesses that are trying to grow need good systems to forecast and monitor the availability of funds. Outside sources of capital such as banks often refuse to advance funds to companies with weak controls and organisational infrastructure.If entrepreneurs hope to build a company that they can sell, they must start preparing early. Public markets and potential acquirers like to see an extended history of well-kept financial records and controls to reassure them of the soundness of the business.Q.None of the following statements can be inferred from the passage EXCEPT that:a)Clear cut positions for employees is a prerequisite for any small business.b)Establishing working procedures is a standard rule for small businesses.c)Prediction of results is beneficial.d)Weak organisational edifice needs to be dismantled and restructured to grow into a bigger organisation.Correct answer is option 'D'. Can you explain this answer?.
Solutions for Directions:Read the following passage and answer the question that follows.Few entrepreneurs start out with both a well-defined strategy and a plan for developing an organisation that can achieve that strategy. In fact, many start-ups, which dont have formal control systems, decision-making processes, or clear roles for employees, can hardly be called organisations. The founders of such ventures improvise. They perform most of the important functions themselves and make decisions as they go along.Informality is fine as long as entrepreneurs arent interested in building a large, sustainable business. Once that becomes their goal, however, they must start developing formal systems and processes. Such organisational infrastructure allows a venture to grow, but at the same time, it increases overhead and may slow down decision-making. How much infrastructure is enough and how much is too much? To match investments in infrastructure to the requirements of a ventures strategy, entrepreneurs must consider the degree to which their strategy depends on the following:As a young venture grows, its founders will probably need to delegate many of the tasks that they used to perform. To get employees to perform those tasks competently and diligently, the founders may need to establish mechanisms to monitor employees and standard operating procedures and policies. Consider an extreme example. Randy and Debbi Fields pass along their skills and knowledge through software that tells employees in every Mrs. Fields Cookies shop exactly how to make cookies and operate the business. The software analyses data such as local weather conditions and the day of the week to generate hourly instructions about such matters as which cookies to bake, when to offer free samples, and when to reorder chocolate chips.Telling employees how to do their jobs, however, can stifle initiative. Companies that require frontline employees to act quickly and resourcefully might decide to focus more on outcomes than on behaviour, using control systems that set performance targets for employees, compare results against objectives and provide appropriate incentives.In a small-scale start-up, everyone does a little bit of everything but as a business grows and tries to achieve economies of scale and scope, employees must be assigned clearly defined roles and grouped into appropriate organisational units. An all purpose workshop employee, for example, might become a machine tool operator, who is part of a manufacturing unit. Specialised activities need to be integrated by, for example, creating the position of a general manager, who coordinates the manufacturing and marketing functions, or through systems that are designed to measure and reward employees for cross-functional cooperation. Poor integrative mechanisms are reasons why geographic expansion, vertical integration, broadening of product lines and other strategies to achieve economies of scale and scope often fail.Cash-strapped businesses that are trying to grow need good systems to forecast and monitor the availability of funds. Outside sources of capital such as banks often refuse to advance funds to companies with weak controls and organisational infrastructure.If entrepreneurs hope to build a company that they can sell, they must start preparing early. Public markets and potential acquirers like to see an extended history of well-kept financial records and controls to reassure them of the soundness of the business.Q.None of the following statements can be inferred from the passage EXCEPT that:a)Clear cut positions for employees is a prerequisite for any small business.b)Establishing working procedures is a standard rule for small businesses.c)Prediction of results is beneficial.d)Weak organisational edifice needs to be dismantled and restructured to grow into a bigger organisation.Correct answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for CAT. Download more important topics, notes, lectures and mock test series for CAT Exam by signing up for free.
Here you can find the meaning of Directions:Read the following passage and answer the question that follows.Few entrepreneurs start out with both a well-defined strategy and a plan for developing an organisation that can achieve that strategy. In fact, many start-ups, which dont have formal control systems, decision-making processes, or clear roles for employees, can hardly be called organisations. The founders of such ventures improvise. They perform most of the important functions themselves and make decisions as they go along.Informality is fine as long as entrepreneurs arent interested in building a large, sustainable business. Once that becomes their goal, however, they must start developing formal systems and processes. Such organisational infrastructure allows a venture to grow, but at the same time, it increases overhead and may slow down decision-making. How much infrastructure is enough and how much is too much? To match investments in infrastructure to the requirements of a ventures strategy, entrepreneurs must consider the degree to which their strategy depends on the following:As a young venture grows, its founders will probably need to delegate many of the tasks that they used to perform. To get employees to perform those tasks competently and diligently, the founders may need to establish mechanisms to monitor employees and standard operating procedures and policies. Consider an extreme example. Randy and Debbi Fields pass along their skills and knowledge through software that tells employees in every Mrs. Fields Cookies shop exactly how to make cookies and operate the business. The software analyses data such as local weather conditions and the day of the week to generate hourly instructions about such matters as which cookies to bake, when to offer free samples, and when to reorder chocolate chips.Telling employees how to do their jobs, however, can stifle initiative. Companies that require frontline employees to act quickly and resourcefully might decide to focus more on outcomes than on behaviour, using control systems that set performance targets for employees, compare results against objectives and provide appropriate incentives.In a small-scale start-up, everyone does a little bit of everything but as a business grows and tries to achieve economies of scale and scope, employees must be assigned clearly defined roles and grouped into appropriate organisational units. An all purpose workshop employee, for example, might become a machine tool operator, who is part of a manufacturing unit. Specialised activities need to be integrated by, for example, creating the position of a general manager, who coordinates the manufacturing and marketing functions, or through systems that are designed to measure and reward employees for cross-functional cooperation. Poor integrative mechanisms are reasons why geographic expansion, vertical integration, broadening of product lines and other strategies to achieve economies of scale and scope often fail.Cash-strapped businesses that are trying to grow need good systems to forecast and monitor the availability of funds. Outside sources of capital such as banks often refuse to advance funds to companies with weak controls and organisational infrastructure.If entrepreneurs hope to build a company that they can sell, they must start preparing early. Public markets and potential acquirers like to see an extended history of well-kept financial records and controls to reassure them of the soundness of the business.Q.None of the following statements can be inferred from the passage EXCEPT that:a)Clear cut positions for employees is a prerequisite for any small business.b)Establishing working procedures is a standard rule for small businesses.c)Prediction of results is beneficial.d)Weak organisational edifice needs to be dismantled and restructured to grow into a bigger organisation.Correct answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Directions:Read the following passage and answer the question that follows.Few entrepreneurs start out with both a well-defined strategy and a plan for developing an organisation that can achieve that strategy. In fact, many start-ups, which dont have formal control systems, decision-making processes, or clear roles for employees, can hardly be called organisations. The founders of such ventures improvise. They perform most of the important functions themselves and make decisions as they go along.Informality is fine as long as entrepreneurs arent interested in building a large, sustainable business. Once that becomes their goal, however, they must start developing formal systems and processes. Such organisational infrastructure allows a venture to grow, but at the same time, it increases overhead and may slow down decision-making. How much infrastructure is enough and how much is too much? To match investments in infrastructure to the requirements of a ventures strategy, entrepreneurs must consider the degree to which their strategy depends on the following:As a young venture grows, its founders will probably need to delegate many of the tasks that they used to perform. To get employees to perform those tasks competently and diligently, the founders may need to establish mechanisms to monitor employees and standard operating procedures and policies. Consider an extreme example. Randy and Debbi Fields pass along their skills and knowledge through software that tells employees in every Mrs. Fields Cookies shop exactly how to make cookies and operate the business. The software analyses data such as local weather conditions and the day of the week to generate hourly instructions about such matters as which cookies to bake, when to offer free samples, and when to reorder chocolate chips.Telling employees how to do their jobs, however, can stifle initiative. Companies that require frontline employees to act quickly and resourcefully might decide to focus more on outcomes than on behaviour, using control systems that set performance targets for employees, compare results against objectives and provide appropriate incentives.In a small-scale start-up, everyone does a little bit of everything but as a business grows and tries to achieve economies of scale and scope, employees must be assigned clearly defined roles and grouped into appropriate organisational units. An all purpose workshop employee, for example, might become a machine tool operator, who is part of a manufacturing unit. Specialised activities need to be integrated by, for example, creating the position of a general manager, who coordinates the manufacturing and marketing functions, or through systems that are designed to measure and reward employees for cross-functional cooperation. Poor integrative mechanisms are reasons why geographic expansion, vertical integration, broadening of product lines and other strategies to achieve economies of scale and scope often fail.Cash-strapped businesses that are trying to grow need good systems to forecast and monitor the availability of funds. Outside sources of capital such as banks often refuse to advance funds to companies with weak controls and organisational infrastructure.If entrepreneurs hope to build a company that they can sell, they must start preparing early. Public markets and potential acquirers like to see an extended history of well-kept financial records and controls to reassure them of the soundness of the business.Q.None of the following statements can be inferred from the passage EXCEPT that:a)Clear cut positions for employees is a prerequisite for any small business.b)Establishing working procedures is a standard rule for small businesses.c)Prediction of results is beneficial.d)Weak organisational edifice needs to be dismantled and restructured to grow into a bigger organisation.Correct answer is option 'D'. Can you explain this answer?, a detailed solution for Directions:Read the following passage and answer the question that follows.Few entrepreneurs start out with both a well-defined strategy and a plan for developing an organisation that can achieve that strategy. In fact, many start-ups, which dont have formal control systems, decision-making processes, or clear roles for employees, can hardly be called organisations. The founders of such ventures improvise. They perform most of the important functions themselves and make decisions as they go along.Informality is fine as long as entrepreneurs arent interested in building a large, sustainable business. Once that becomes their goal, however, they must start developing formal systems and processes. Such organisational infrastructure allows a venture to grow, but at the same time, it increases overhead and may slow down decision-making. How much infrastructure is enough and how much is too much? To match investments in infrastructure to the requirements of a ventures strategy, entrepreneurs must consider the degree to which their strategy depends on the following:As a young venture grows, its founders will probably need to delegate many of the tasks that they used to perform. To get employees to perform those tasks competently and diligently, the founders may need to establish mechanisms to monitor employees and standard operating procedures and policies. Consider an extreme example. Randy and Debbi Fields pass along their skills and knowledge through software that tells employees in every Mrs. Fields Cookies shop exactly how to make cookies and operate the business. The software analyses data such as local weather conditions and the day of the week to generate hourly instructions about such matters as which cookies to bake, when to offer free samples, and when to reorder chocolate chips.Telling employees how to do their jobs, however, can stifle initiative. Companies that require frontline employees to act quickly and resourcefully might decide to focus more on outcomes than on behaviour, using control systems that set performance targets for employees, compare results against objectives and provide appropriate incentives.In a small-scale start-up, everyone does a little bit of everything but as a business grows and tries to achieve economies of scale and scope, employees must be assigned clearly defined roles and grouped into appropriate organisational units. An all purpose workshop employee, for example, might become a machine tool operator, who is part of a manufacturing unit. Specialised activities need to be integrated by, for example, creating the position of a general manager, who coordinates the manufacturing and marketing functions, or through systems that are designed to measure and reward employees for cross-functional cooperation. Poor integrative mechanisms are reasons why geographic expansion, vertical integration, broadening of product lines and other strategies to achieve economies of scale and scope often fail.Cash-strapped businesses that are trying to grow need good systems to forecast and monitor the availability of funds. Outside sources of capital such as banks often refuse to advance funds to companies with weak controls and organisational infrastructure.If entrepreneurs hope to build a company that they can sell, they must start preparing early. Public markets and potential acquirers like to see an extended history of well-kept financial records and controls to reassure them of the soundness of the business.Q.None of the following statements can be inferred from the passage EXCEPT that:a)Clear cut positions for employees is a prerequisite for any small business.b)Establishing working procedures is a standard rule for small businesses.c)Prediction of results is beneficial.d)Weak organisational edifice needs to be dismantled and restructured to grow into a bigger organisation.Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of Directions:Read the following passage and answer the question that follows.Few entrepreneurs start out with both a well-defined strategy and a plan for developing an organisation that can achieve that strategy. In fact, many start-ups, which dont have formal control systems, decision-making processes, or clear roles for employees, can hardly be called organisations. The founders of such ventures improvise. They perform most of the important functions themselves and make decisions as they go along.Informality is fine as long as entrepreneurs arent interested in building a large, sustainable business. Once that becomes their goal, however, they must start developing formal systems and processes. Such organisational infrastructure allows a venture to grow, but at the same time, it increases overhead and may slow down decision-making. How much infrastructure is enough and how much is too much? To match investments in infrastructure to the requirements of a ventures strategy, entrepreneurs must consider the degree to which their strategy depends on the following:As a young venture grows, its founders will probably need to delegate many of the tasks that they used to perform. To get employees to perform those tasks competently and diligently, the founders may need to establish mechanisms to monitor employees and standard operating procedures and policies. Consider an extreme example. Randy and Debbi Fields pass along their skills and knowledge through software that tells employees in every Mrs. Fields Cookies shop exactly how to make cookies and operate the business. The software analyses data such as local weather conditions and the day of the week to generate hourly instructions about such matters as which cookies to bake, when to offer free samples, and when to reorder chocolate chips.Telling employees how to do their jobs, however, can stifle initiative. Companies that require frontline employees to act quickly and resourcefully might decide to focus more on outcomes than on behaviour, using control systems that set performance targets for employees, compare results against objectives and provide appropriate incentives.In a small-scale start-up, everyone does a little bit of everything but as a business grows and tries to achieve economies of scale and scope, employees must be assigned clearly defined roles and grouped into appropriate organisational units. An all purpose workshop employee, for example, might become a machine tool operator, who is part of a manufacturing unit. Specialised activities need to be integrated by, for example, creating the position of a general manager, who coordinates the manufacturing and marketing functions, or through systems that are designed to measure and reward employees for cross-functional cooperation. Poor integrative mechanisms are reasons why geographic expansion, vertical integration, broadening of product lines and other strategies to achieve economies of scale and scope often fail.Cash-strapped businesses that are trying to grow need good systems to forecast and monitor the availability of funds. Outside sources of capital such as banks often refuse to advance funds to companies with weak controls and organisational infrastructure.If entrepreneurs hope to build a company that they can sell, they must start preparing early. Public markets and potential acquirers like to see an extended history of well-kept financial records and controls to reassure them of the soundness of the business.Q.None of the following statements can be inferred from the passage EXCEPT that:a)Clear cut positions for employees is a prerequisite for any small business.b)Establishing working procedures is a standard rule for small businesses.c)Prediction of results is beneficial.d)Weak organisational edifice needs to be dismantled and restructured to grow into a bigger organisation.Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Directions:Read the following passage and answer the question that follows.Few entrepreneurs start out with both a well-defined strategy and a plan for developing an organisation that can achieve that strategy. In fact, many start-ups, which dont have formal control systems, decision-making processes, or clear roles for employees, can hardly be called organisations. The founders of such ventures improvise. They perform most of the important functions themselves and make decisions as they go along.Informality is fine as long as entrepreneurs arent interested in building a large, sustainable business. Once that becomes their goal, however, they must start developing formal systems and processes. Such organisational infrastructure allows a venture to grow, but at the same time, it increases overhead and may slow down decision-making. How much infrastructure is enough and how much is too much? To match investments in infrastructure to the requirements of a ventures strategy, entrepreneurs must consider the degree to which their strategy depends on the following:As a young venture grows, its founders will probably need to delegate many of the tasks that they used to perform. To get employees to perform those tasks competently and diligently, the founders may need to establish mechanisms to monitor employees and standard operating procedures and policies. Consider an extreme example. Randy and Debbi Fields pass along their skills and knowledge through software that tells employees in every Mrs. Fields Cookies shop exactly how to make cookies and operate the business. The software analyses data such as local weather conditions and the day of the week to generate hourly instructions about such matters as which cookies to bake, when to offer free samples, and when to reorder chocolate chips.Telling employees how to do their jobs, however, can stifle initiative. Companies that require frontline employees to act quickly and resourcefully might decide to focus more on outcomes than on behaviour, using control systems that set performance targets for employees, compare results against objectives and provide appropriate incentives.In a small-scale start-up, everyone does a little bit of everything but as a business grows and tries to achieve economies of scale and scope, employees must be assigned clearly defined roles and grouped into appropriate organisational units. An all purpose workshop employee, for example, might become a machine tool operator, who is part of a manufacturing unit. Specialised activities need to be integrated by, for example, creating the position of a general manager, who coordinates the manufacturing and marketing functions, or through systems that are designed to measure and reward employees for cross-functional cooperation. Poor integrative mechanisms are reasons why geographic expansion, vertical integration, broadening of product lines and other strategies to achieve economies of scale and scope often fail.Cash-strapped businesses that are trying to grow need good systems to forecast and monitor the availability of funds. Outside sources of capital such as banks often refuse to advance funds to companies with weak controls and organisational infrastructure.If entrepreneurs hope to build a company that they can sell, they must start preparing early. Public markets and potential acquirers like to see an extended history of well-kept financial records and controls to reassure them of the soundness of the business.Q.None of the following statements can be inferred from the passage EXCEPT that:a)Clear cut positions for employees is a prerequisite for any small business.b)Establishing working procedures is a standard rule for small businesses.c)Prediction of results is beneficial.d)Weak organisational edifice needs to be dismantled and restructured to grow into a bigger organisation.Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice CAT tests.
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