Which structure is suitable for those business enterprises where a large variety of products are manufactured using different productive resources?

1. CHOOSE THE CORRECT OPTION GIVEN BELOW FOR EACH QUESTION:
Leo Cloth Ltd. produces only fabrics. After experiencing great success in the fabric industry, the directors of Leo Cloth Ltd. acquired three new manufacturing (Electronics, Mobile Phones, Cement) units and began selling a variety of products in the market. They decided that each unit would be led by an individual with the ability and competence to handle responsibility. Only female candidates will be considered for the vacant position.

1.A State the type of organisational structure, Leo Cloth Ltd, had followed when they were producing only fabric.

• Functional structure
• Divisional structure
• Both (a) and (b)
• None of the above

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1.B State the organisational structure suitable to Leo Cloth Ltd. after they plan to add more line of products.

• Functional
• Divisional
• Both (a) and (b)
• None of the above

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1.C If organizations want their departments or divisions to be self-contained and independent then which structure is suitable?

• Functional structure
• Divisional structure
• Both (a) and (b)
• None of the above

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1.D Organizations having plans of diversification and expansion, must adapt:

• Functional structure
• Divisional structure
• Both (a) and (b)
• None of the above

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2. CHOOSE THE CORRECT OPTION GIVEN BELOW FOR EACH QUESTION:
"In every organisation, managers are assigned a great deal of work, and no manager can do it all alone. He divides the work among various individuals working under him based on their qualifications and divides the tasks among them. The manager starts by delegating his responsibilities to his subordinates. He purposefully delegated some of his responsibilities to his subordinates. Following the delegation of responsibilities, the manager delegated some of his authority, i.e., the power to make decisions, to his subordinates so that the responsibilities could be carried out properly. The manager establishes accountability to ensure that his subordinates perform all work effectively and efficiently in the expected manner. "

2.A Name the concept discussed in the above para.

• Delegation
• Decentralization
• Organising
• Planning

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2.B Responsibility refers to:

• Answerable for non-completion of task
• Power to make decisions
• Obligations to do a work
• None of the above

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2.C Authority refers to:

• Power to take decisions independently
• Obligation to do a task
• Answerable for non-completion of task
• None of these

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2.D What cannot be delegated?

• Responsibility
• Authority
• Accountability
• All of the above

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3. CHOOSE THE CORRECT OPTION GIVEN BELOW EACH QUESTION:
Rahul, Vinay, and Tarun have decided to start a toy manufacturing company. They identified the following major activities that they must complete:
(i) Purchasing raw materials
(ii) Purchasing machinery
(iii) Toy production
(iv) Arrangement of finance
(v) Toy sales
(vi) Identifying areas where they can sell their toys
(vii) Recruitment of employees
They believed that four managers should be appointed to oversee the work in order to make it more efficient. (a) Production (b) Finance (c) Marketing (d) Personnel

3.A Identify the function of management involved in above mentioned para.

• Planning
• Organising
• Staffing
• Directing

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3.B State the first step of the process of that function

• In order to facilitate the work they thought that four managers should be appointed.
• They identified the main activities.
• Both (a) and (b)
• None of the above

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3.C By grouping the activities in four departments, the manager is performing which step of process?

• Assignment of Duty
• Reporting Relationship
• Departmentalization
• None of the above

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3.D The steps of process of that function, which is not followed in above para is:

• Identification of activities
• Establishing reporting relations
• Grouping of activities or departmentalization
• None of the above

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3.E Janta Foods Ltd. is a company that sells 'Noodles.' Its registered office is in Kolkata, its manufacturing unit is at Solan, and its marketing department is in Delhi. Which type of organisational structure should the company adopt to achieve its target?

• Non-Functional Organisation Structure
• Functional Organisation Structure.
• Planning Organisational Structure
• None of the Above

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4. Mahindra Tech Ltd. has grown in size. It was a market leader but with changes in business environment and with the entry of MNCs, its market share is declining. To cope up with the situation, the CEO starts delegating some of his authority to the General Manager, who also felt himself overburdened and with the approval of CEO disperses some of his authority to various levels throughout the organisation

4.A Identify the concept of management discussed above?

• None of the Below
• Centralization
• Decentralization
• Privatization

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4.B What is the key to the Managerial Post?

• Responsibility
• Accountability
• Authority
• None

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5. Assertion: Organisation structure is the outcome of the organising process.
Reason : Organising leads to the proper usage of all material, financial and human resources.

• Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A)
• Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of Assertion (A)
• Assertion (A) is True but Reason (R) is False
• Assertion (A) is False but Reason (R) is True

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6. Assertion: The superior-subordinate relation is clearly defined in organising.
Reason : Each manager knows very clearly to whom he can give orders and from whom he has to receive orders.

• Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A)
• Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of Assertion (A)
• Assertion (A) is True but Reason (R) is False
• Assertion (A) is False but Reason (R) is True

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7. Assertion: The first step in the process of organizing involves identifying dividing the work.
Reason : Once work has been divided in to small and manageable activities then those activities which are similar in nature are grouped together called departments.

• Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A)
• Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of Assertion (A)
• Assertion (A) is True but Reason (R) is False
• Assertion (A) is False but Reason (R) is True

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8. Assertion: Divisional Structure is suitable for those business enterprises where a large variety of products are manufactured using different productive resources.
Reason : It leads to minimal duplication of efforts which results in economies of scale and the lower cost.

• Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A)
• Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of Assertion (A)
• Assertion (A) is True but Reason (R) is False
• Assertion (A) is False but Reason (R) is True

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9. Assertion: Decentralization has narrow scope as it is limited to superior and his immediate subordinate.
Reason : Decentralization is an optional policy decision and is done at the discretion of the top management.

• Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A)
• Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of Assertion (A)
• Assertion (A) is True but Reason (R) is False
• Assertion (A) is False but Reason (R) is True

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10. Assertion: The span of management to a large extent give shape to the organizational structure.
Reason : Span of management refers to the number of subordinate that can be e ffectively managed by a superior.

• Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A)
• Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of Assertion (A)
• Assertion (A) is True but Reason (R) is False
• Assertion (A) is False but Reason (R) is True

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11. Assertion: Decentralization develops managerial talents for future.
Reason : In a decentralized organisation decision-making authority is given to middle and lower level management.

• Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A)
• Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of Assertion (A)
• Assertion (A) is True but Reason (R) is False
• Assertion (A) is False but Reason (R) is True

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12. Assertion: Functional Structure leads to minimum duplication of efforts.
Reason : In this type of structure its easy to fix accountability.

• Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A)
• Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of Assertion (A)
• Assertion (A) is True but Reason (R) is False
• Assertion (A) is False but Reason (R) is True

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13. Assertion: Delegation refers to the downward transfer of authority from a superior to a subordinate.
Reason : It is a prerequisite to the efficient functioning of an organization, because it enables a manager to use his time on high priority activities.

• Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A)
• Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of Assertion (A)
• Assertion (A) is True but Reason (R) is False
• Assertion (A) is False but Reason (R) is True

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14. Assertion: Divisional structure is suitable for single or one type of product manufacturing companies.
Reason : In Divisional Structure all the activities related to one type of product are grouped under one department.

• Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A)
• Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of Assertion (A)
• Assertion (A) is True but Reason (R) is False
• Assertion (A) is False but Reason (R) is True

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15. Assertion: Decentralization can be defined as even and systematic distribution of authority at every levels of management.
Reason : An organisational structure clearly defines the levels of management and span of control under each level.

• Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A)
• Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of Assertion (A)
• Assertion (A) is True but Reason (R) is False
• Assertion (A) is False but Reason (R) is True

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16. Assertion: Responsibility always flows downwards from superior to subordinate.
Reason : Responsibility is the obligation of a subordinate to properly perform the assigned duty.

• Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A)
• Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of Assertion (A)
• Assertion (A) is True but Reason (R) is False
• Assertion (A) is False but Reason (R) is True

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17. Assertion: Delegation of authority is an important part of organizing.
Reason : Delegation not only reduce the work load of managers, but it also helps them to use and realize their full potential for more creative work.

• Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A)
• Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of Assertion (A)
• Assertion (A) is True but Reason (R) is False
• Assertion (A) is False but Reason (R) is True

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18. Assertion: In the organising function, there are very few chances of duplication of work or overlapping of work.
Reason : With the process of delegation the managers can pass all their routine work to the subordinate and concentrate on important work.

• Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A)
• Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of Assertion (A)
• Assertion (A) is True but Reason (R) is False
• Assertion (A) is False but Reason (R) is True

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19. Assertion: A Functional Structure leads to occupational specialization since emphasis is placed on specific function.
Reason : This promotes efficiency in utilization of manpower as employees perform similar tasks within a department and are able to improve performance.

• Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A)
• Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of Assertion (A)
• Assertion (A) is True but Reason (R) is False
• Assertion (A) is False but Reason (R) is True

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20. Arrange the following steps in the process of organizing in the correct sequence
(a) Assignment of duties
(b) Departmentalisation
(c) Identification and division of work
(d) Establishing reporting relationship

• (a), (c), (b), (d)
• (b), (a), (c), (d)
• (c), (b), (a), (d)
• (d), (c), (b), (a)

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Which structure is most suitable when a large variety of products are manufactured?

Which organizational structure is suitable for business having a large variety of products?

When the organisation is large in size and is producing more than one type of product the activities related to one product are grouped under one department?

What are the 4 types of organizational structures?