12 BSt – Organising Test 2
The number of attempts remaining is 3
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1. A feature of Formal Organisation is that it emphasizes:
Formal Organisation deliberately emphasizes work over interpersonal relationships.
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2. Decentralisation is important because it fosters competition and increased productivity among divisions, thereby facilitating:
The facilitation of growth is achieved in decentralised organizations through increased competition and productivity.
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3. Which feature contrasts Formal and Informal Organisations based on the nature of their structure?
Formal Organisation is Rigid, defined by rules, whereas Informal Organisation is Flexible.
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4. One advantage of the Informal Organisation is that it can compensate for the inadequacies of the formal structure by:
Informal Organisation helps compensate for formal structure inadequacies, such as by testing employee reactions to new strategies before formal implementation.
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5. The structural transformation at ONGC, moving from functional heads to an asset-based approach, was recommended by which consultancy?
The case study mentions that the shift at ONGC was recommended by McKinsey.
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6. In the context of Delegation, the element that is defined as ‘being answerable for the final outcome’ and flows upward, which cannot be delegated at all, is:
Accountability is being answerable for the final outcome, flows upward, and crucially, cannot be delegated.
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7. Decentralisation enables quick decision making because decisions are taken:
Decentralisation places decision-making authority nearest to the points of action, resulting in quick decision making.
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8. Effective administration is achieved through organising because clarity in jobs and duties avoids:
Effective administration is listed as an importance of organising because clarity in jobs and duties avoids confusion.
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9. The concept of Organising ensures that resources are used optimally and people work collectively, thereby directing efforts toward:
The core purpose of organising is to ensure efforts are directed towards goal attainment laid down in the planning stage.
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10. When effective delegation reduces a manager’s workload and stimulates creativity, it contributes to which specific importance of organising?
Delegation reduces workload and stimulates creativity in managers, leading to the Development of personnel.
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11. How does decentralisation prepare a supply of future managers for the organization?
Decentralisation develops managerial talent for the future by creating a reservoir of qualified manpower, as subordinates learn to depend on their own judgment.
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12. When accountability for performance is easy to fix and profits are easily assessed, this is a clear advantage of which structure?
In the Divisional Structure, accountability for profits (since each division is a profit center) is easy to fix.
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13. Which major disadvantage of the Divisional Structure involves increased expenses?
Increased costs due to duplication of activities (e.g., each division having its own accounts/marketing department) across divisions is a disadvantage.
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14. The number of subordinates a superior can effectively manage determines the:
The Span of Management is defined as the number of subordinates effectively managed by a superior, and it determines the shape of the organizational structure.
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15. The process of clarifying jobs and working relationships, which ultimately leads to the creation of an organisational structure, is part of:
The overall process of organising involves clarifying jobs, working relationships, and coordinating efforts, leading to the structure.
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16. Which organization structure promotes control and coordination within the departments, thereby increasing efficiency?
Functional Structure is advantageous because it promotes control and coordination specifically within the major functional departments.
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17. The conflict over fund allocation is cited as a major disadvantage of which structure?
Conflict over fund allocation is a drawback of the Divisional Structure, as different product divisions compete for resources.
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18. Which advantage of Delegation directly contributes to increasing the self-esteem and confidence of the employees?
Delegation contributes to the motivation of employees by building their self-esteem and confidence.
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19. Which term describes a structure that specifies clear boundaries of authority, responsibility, and accountability, and is deliberately designed by management?
Formal Organisation is designed deliberately by management and specifies clear boundaries for authority and responsibility.
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20. Delegation is considered a prerequisite for efficient functioning because it allows the manager to:
Delegation allows the manager to transfer routine work and focus on high-priority activities.
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21. Which limitation of the Formal Organisation structure relates to its inability to capture all human relationships among employees?
The Formal Organisation has limitations because it provides inadequate recognition of creativity and cannot capture the complexity of all human relationships.
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22. When comparing delegation and decentralisation, which concept has a wider scope because it is an extension of authority transfer to the lowest level?
Decentralisation has a wide scope as it extends delegation systematically throughout all levels, whereas delegation has a narrow scope (superior to immediate subordinate).
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23. The fourth step in the Process of Organising, which creates a hierarchical structure for coordination and accountability, is:
Establishing authority and reporting relationships is the final step, creating the necessary hierarchical structure.
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24. How does the organising function contribute to Expansion and growth?
Organising facilitates expansion by enabling the addition of job positions, new departments, and diversification of product lines.
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25. Which step in the process of Organising involves allocating work based on the skills and competencies of the personnel?
Assignment of duties is the third step, where work is allocated to individuals based on their skills and competencies.
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