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Test: Organising- Case Based Type Questions - Commerce MCQ


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12 Questions MCQ Test - Test: Organising- Case Based Type Questions

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Test: Organising- Case Based Type Questions - Question 1

Read the following text and answer the questions given below:

'Pappu Sweets Makers' is a sweets making company which has turnover in crores. In order to manage the work in the organisation, the departments have been created on the basis of functions.

Examine the following situations of this organisation and give answers accordingly:

Situation 1: It is expected that employees who are performing similar tasks work under the same department. So the company now has HR, Marketing and Finance departments. The division is based on specific functions.

Situation 2: There are similarities in the tasks performed within the same department.

Situation 3: The profit is increasing month by month due to the success of this structure of the organisation.

Situation 4: There has been minimum duplication of efforts as the same department is taking care of single function.

Q. What will be the outcome of Situation 2?

Detailed Solution for Test: Organising- Case Based Type Questions - Question 1
  • Control is defined as the power of restraining and regulating by which a process can be started, regulated in pace to speed up or slow down or stop completely.

  • Coordination can be defined as the working together of the different systems of an organism in order to produce an appropriate reaction to stimuli.

Test: Organising- Case Based Type Questions - Question 2

Read the following text and answer the questions given below:

'Pappu Sweets Makers' is a sweets making company which has turnover in crores. In order to manage the work in the organisation, the departments have been created on the basis of functions.

Examine the following situations of this organisation and give answers accordingly:

Situation 1: It is expected that employees who are performing similar tasks work under the same department. So the company now has HR, Marketing and Finance departments. The division is based on specific functions.

Situation 2: There are similarities in the tasks performed within the same department.

Situation 3: The profit is increasing month by month due to the success of this structure of the organisation.

Situation 4: There has been minimum duplication of efforts as the same department is taking care of single function.

Q. What will be the result of Situation 4?

Detailed Solution for Test: Organising- Case Based Type Questions - Question 2
  • Cost reduction is the process used by companies to reduce their costs and increase their profits.

  • Depending on a company’s services or product, the strategies can vary.

  • Every decision in the product development process affects cost.

  • Companies typically launch a new product without focusing too much on cost.

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Test: Organising- Case Based Type Questions - Question 3

Read the following text and answer the questions given below:

'Pappu Sweets Makers' is a sweets making company which has turnover in crores. In order to manage the work in the organisation, the departments have been created on the basis of functions.

Examine the following situations of this organisation and give answers accordingly:

Situation 1: It is expected that employees who are performing similar tasks work under the same department. So the company now has HR, Marketing and Finance departments. The division is based on specific functions.

Situation 2: There are similarities in the tasks performed within the same department.

Situation 3: The profit is increasing month by month due to the success of this structure of the organisation.

Situation 4: There has been minimum duplication of efforts as the same department is taking care of single function.

Q. Which type of organisation structure is discussed in the above case?

Detailed Solution for Test: Organising- Case Based Type Questions - Question 3
A functional structure leads to occupational specialisation since emphasis is placed on specific functions. This promotes efficiency in utilisation of manpower as employees perform similar tasks within a department and are able to improve performance.
Test: Organising- Case Based Type Questions - Question 4

Read the following text and answer the questions given below:

'Pappu Sweets Makers' is a sweets making company which has turnover in crores. In order to manage the work in the organisation, the departments have been created on the basis of functions.

Examine the following situations of this organisation and give answers accordingly:

Situation 1: It is expected that employees who are performing similar tasks work under the same department. So the company now has HR, Marketing and Finance departments. The division is based on specific functions.

Situation 2: There are similarities in the tasks performed within the same department.

Situation 3: The profit is increasing month by month due to the success of this structure of the organisation.

Situation 4: There has been minimum duplication of efforts as the same department is taking care of single function.

Q. Why do you think the profit is increasing as given in Situation 3?

Detailed Solution for Test: Organising- Case Based Type Questions - Question 4
  • Managerial efficiency involves using the fewest number of resources to produce the largest amount of profit. The best managers are effective in giving directions and know how to keep costs down.

  • Operational efficiency is the ability of an organization to reduce waste in time, effort and materials as much as possible, while still producing a high-quality service or product.

Test: Organising- Case Based Type Questions - Question 5

Read the following text and answer the questions given below:

Bimal, the owner of 'Reliable Constructions' decided to begin a campaign in order to create awareness among the residents for creating a clean and safe environment. In an effort to develop clean surroundings in the area, he formed a team of 20 members to list the different ways that can be adopted for keeping the area clean. Different people had different suggestions, someone suggested to take the help of local residents including young children, one suggestion was to involve unemployed youth. The idea to take the help of volunteers was also given. A combination of the most effective strategies after evaluating all options was selected for implementation. To achieve the desired goals and objectives, various activities were identified like:

(i) Purchase of essential items like dustbins, garbage bags, brooms, phenyl, etc.

(ii) Door-to-door collection of garbage.

(iii) Recycling of garbage.

(iv) Disposal of garbage, etc.

Thus, an organisational design was chosen which grouped similar activities together in order to minimize duplication of effort. After identification and grouping of these activities, the work was allocated among the different members.

Q. "Thus, an organisational design was chosen which grouped similar activities together in order to minimize duplication of effort." Which organisational design is being referred to in this line?

Detailed Solution for Test: Organising- Case Based Type Questions - Question 5
A functional organization is a common type of organizational structure in which the organization is divided into smaller groups based on specialized functional areas, such as IT, finance, or marketing.
Test: Organising- Case Based Type Questions - Question 6

Read the following text and answer the questions given below:

Bimal, the owner of 'Reliable Constructions' decided to begin a campaign in order to create awareness among the residents for creating a clean and safe environment. In an effort to develop clean surroundings in the area, he formed a team of 20 members to list the different ways that can be adopted for keeping the area clean. Different people had different suggestions, someone suggested to take the help of local residents including young children, one suggestion was to involve unemployed youth. The idea to take the help of volunteers was also given. A combination of the most effective strategies after evaluating all options was selected for implementation. To achieve the desired goals and objectives, various activities were identified like:

(i) Purchase of essential items like dustbins, garbage bags, brooms, phenyl, etc.

(ii) Door-to-door collection of garbage.

(iii) Recycling of garbage.

(iv) Disposal of garbage, etc.

Thus, an organisational design was chosen which grouped similar activities together in order to minimize duplication of effort. After identification and grouping of these activities, the work was allocated among the different members.

Q. "After identification of different activities the work was allocated to different members." Which step does this represent in the process of organizing?

Detailed Solution for Test: Organising- Case Based Type Questions - Question 6
Assignment of Duties: The work is assigned according to the ability of individuals. Employees are assigned duties by giving them a document called job description. This document clearly defines the contents and responsibilities related to the job.
Test: Organising- Case Based Type Questions - Question 7

Read the following text and answer the questions given below:

Bimal, the owner of 'Reliable Constructions' decided to begin a campaign in order to create awareness among the residents for creating a clean and safe environment. In an effort to develop clean surroundings in the area, he formed a team of 20 members to list the different ways that can be adopted for keeping the area clean. Different people had different suggestions, someone suggested to take the help of local residents including young children, one suggestion was to involve unemployed youth. The idea to take the help of volunteers was also given. A combination of the most effective strategies after evaluating all options was selected for implementation. To achieve the desired goals and objectives, various activities were identified like:

(i) Purchase of essential items like dustbins, garbage bags, brooms, phenyl, etc.

(ii) Door-to-door collection of garbage.

(iii) Recycling of garbage.

(iv) Disposal of garbage, etc.

Thus, an organisational design was chosen which grouped similar activities together in order to minimize duplication of effort. After identification and grouping of these activities, the work was allocated among the different members.

Q. "To achieve the desired goal various activities were identified like:...." Which step does this represent in the process of organizing?

Detailed Solution for Test: Organising- Case Based Type Questions - Question 7
The process of organising involves identifying and dividing the work that has to be done in accordance with previously determined plans. The work is divided into manageable activities so that duplication can be avoided and the burden of work can be shared among the employees.
Test: Organising- Case Based Type Questions - Question 8

Read the following text and answer the questions given below:

Bimal, the owner of 'Reliable Constructions' decided to begin a campaign in order to create awareness among the residents for creating a clean and safe environment. In an effort to develop clean surroundings in the area, he formed a team of 20 members to list the different ways that can be adopted for keeping the area clean. Different people had different suggestions, someone suggested to take the help of local residents including young children, one suggestion was to involve unemployed youth. The idea to take the help of volunteers was also given. A combination of the most effective strategies after evaluating all options was selected for implementation. To achieve the desired goals and objectives, various activities were identified like:

(i) Purchase of essential items like dustbins, garbage bags, brooms, phenyl, etc.

(ii) Door-to-door collection of garbage.

(iii) Recycling of garbage.

(iv) Disposal of garbage, etc.

Thus, an organisational design was chosen which grouped similar activities together in order to minimize duplication of effort. After identification and grouping of these activities, the work was allocated among the different members.

Q. "Thus, an organisational design was chosen which grouped similar activities together in order to minimize duplication of effort." Which step under the process of organizing is being referred to in this line?

Detailed Solution for Test: Organising- Case Based Type Questions - Question 8
Once work has been divided into small and manageable activities then those activities which are similar in nature are grouped together. Such sets facilitate specialisation. This grouping process is called departmentalisation.
Test: Organising- Case Based Type Questions - Question 9

Read the following text and answer the questions given below:

Alpha Tonics is a progressive company which has achieved new records in the field of medicines. Recently the company decided to go for a major shift in policy decision by handing over the decision making authority to the lower most level of employees. For this the company went for a thorough planning. Within four months the positive results of this major policy decision was recognizable. The employees felt a lot of development in their skill of taking first step to manage things on their own. Some major newspapers also covered this development. The production of the company increased. The company's top management could now focus on new areas of innovation as the employees turned more reliable.

One day it so happened that the company's manufacturing branch in south could not fulfill even half of its production target and the operations manager was held answerable for the assigned target. He was called in the office. When he was questioned it was found that his right to command the workers was insufficient and it should have been more to create results. The management decided to listen to him and he was given more power. When he went to the shop floor he told the workers that the standard of behaviour of the workers should come from the official rules and procedures.

Q. Which of the following advantages of decentralization have been highlighted in the above case?

Detailed Solution for Test: Organising- Case Based Type Questions - Question 9
  • Motivation of Subordinates Decentralization improves the level of job satisfaction as well as employee morale, especially amongst the lower level managers. Furthermore, it strives to satisfy the varying requirements for participation, independence, and status. Decentralization also promotes a spirit of group cohesiveness and spirit.

  • Future talent management is driven by the changes in the nature of work, the work environment and the needs of employers. Talent management will move away from generic approach and instead speak to individuals as people. Organizations should take a more pro-active rather than reactive role.

Test: Organising- Case Based Type Questions - Question 10

Read the following text and answer the questions given below:

Alpha Tonics is a progressive company which has achieved new records in the field of medicines. Recently the company decided to go for a major shift in policy decision by handing over the decision making authority to the lower most level of employees. For this the company went for a thorough planning. Within four months the positive results of this major policy decision was recognizable. The employees felt a lot of development in their skill of taking first step to manage things on their own. Some major newspapers also covered this development. The production of the company increased. The company's top management could now focus on new areas of innovation as the employees turned more reliable.

One day it so happened that the company's manufacturing branch in south could not fulfill even half of its production target and the operations manager was held answerable for the assigned target. He was called in the office. When he was questioned it was found that his right to command the workers was insufficient and it should have been more to create results. The management decided to listen to him and he was given more power. When he went to the shop floor he told the workers that the standard of behaviour of the workers should come from the official rules and procedures.

Q. Which feature of the informal organisation has been opposed by the operations manager in the above case?

Detailed Solution for Test: Organising- Case Based Type Questions - Question 10
Group norms are ground rules that can encourage a group to work efficiently and discourage behaviors that hinder its effectiveness. Although unwritten, they govern how group members interact with each other, work as a team, make decisions, and even how they dress.
Test: Organising- Case Based Type Questions - Question 11

Read the following text and answer the questions given below:

Alpha Tonics is a progressive company which has achieved new records in the field of medicines. Recently the company decided to go for a major shift in policy decision by handing over the decision making authority to the lower most level of employees. For this the company went for a thorough planning. Within four months the positive results of this major policy decision was recognizable. The employees felt a lot of development in their skill of taking first step to manage things on their own. Some major newspapers also covered this development. The production of the company increased. The company's top management could now focus on new areas of innovation as the employees turned more reliable.

One day it so happened that the company's manufacturing branch in south could not fulfill even half of its production target and the operations manager was held answerable for the assigned target. He was called in the office. When he was questioned it was found that his right to command the workers was insufficient and it should have been more to create results. The management decided to listen to him and he was given more power. When he went to the shop floor he told the workers that the standard of behaviour of the workers should come from the official rules and procedures.

Q. Which concept of management has been related to in the first paragraph of the case?

Detailed Solution for Test: Organising- Case Based Type Questions - Question 11
Decentralisation explains the manner in which decision making responsibilities are divided among hierarchical levels. Decentralisation refers to delegation of authority throughout all the levels of the organisation.
Test: Organising- Case Based Type Questions - Question 12

Read the following text and answer the questions given below:

Alpha Tonics is a progressive company which has achieved new records in the field of medicines. Recently the company decided to go for a major shift in policy decision by handing over the decision making authority to the lower most level of employees. For this the company went for a thorough planning. Within four months the positive results of this major policy decision was recognizable. The employees felt a lot of development in their skill of taking first step to manage things on their own. Some major newspapers also covered this development. The production of the company increased. The company's top management could now focus on new areas of innovation as the employees turned more reliable.

One day it so happened that the company's manufacturing branch in south could not fulfill even half of its production target and the operations manager was held answerable for the assigned target. He was called in the office. When he was questioned it was found that his right to command the workers was insufficient and it should have been more to create results. The management decided to listen to him and he was given more power. When he went to the shop floor he told the workers that the standard of behaviour of the workers should come from the official rules and procedures.

Q. Which elements of delegation have been highlighted in the second paragraph of the case?

Detailed Solution for Test: Organising- Case Based Type Questions - Question 12
Authority refers to the right of an individual to command his subordinates and to take action within the scope of his position. The concept of authority arises from the established scalar chain which links the various job positions and levels of an organisation. Accountability implies being answerable for the final outcome. Once authority has been delegated and responsibility accepted, one cannot deny accountability.
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