InterviewSolution
This section includes InterviewSolutions, each offering curated multiple-choice questions to sharpen your knowledge and support exam preparation. Choose a topic below to get started.
| 51. |
Case Problems A company, which manufactures a popular brand of toys, has been enjoying good market reputation. It has a functional organisational structure with Separate departments for production, marketing, finance, human resources and research and development. Lately to use its brand name and also to cash on to new business opportunities it is thinking to diversify into manufacture of new range of electronic toys for which a new market is emerging.Prepare a report regarding organisation structure giving concrete reasons with regard to benefits the company will derive from the steps it should take. |
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Answer» In the given situation, organisation should shift from functional structure to divisional structure as the company wants to diversify; by adding a new product line. The reasons and benefits are (i) The performance of each unit can be easily assessed. (ii) New product lines can be easily added without disturbing the existing units. (iii) Decision making is faster. (iv) Divisional structure maintains short line of communication with customers and provide better services to them. A company manufacturing sewing machines set up n 1945 by the British promoters follows formal organisation culture in totality. It is facing lot of problems in delays in decision making. As the result it is not able to adapt to changing business environment. The work force is also not motivated since they cannot vent their grievances except through formal channels, which involve red tape. Employee turnover is high. Its market share is also declining due to changed circumstances and business environment. |
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| 52. |
Case Problems A company, which manufactures a popular brand of toys, has been enjoying good market reputation. It has a functional organisational structure with Separate departments for production, marketing, finance, human resources and research and development. Lately to use its brand name and also to cash on to new business opportunities it is thinking to diversify into manufacture of new range of electronic toys for which a new market is emerging.What organisation structure changes should the company bring about in order to retain its market share? How will the changes suggested by you help the firm? Keep in mind that the sector in which the company is FMCG. |
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Answer» The company X Ltd is working in a centralised way, which is not giving enough time to the higher officials to think of better policies, strategies to handle the changes in the changing environment. The company should thus get decentralised so that the routine type of work, involving minor decisions can be looked after by the lower levels. This will give/save more time for the directors and divisional heads to plan strategies to fight with competition. |
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| 53. |
Case Problems A company, which manufactures a popular brand of toys, has been enjoying good market reputation. It has a functional organisational structure with Separate departments for production, marketing, finance, human resources and research and development. Lately to use its brand name and also to cash on to new business opportunities it is thinking to diversify into manufacture of new range of electronic toys for which a new market is emerging.You are to advise the company with regard to change it should bring about its organisation structure to overcome the problems faced by it. Give reasons in terms of benefits it will derive from the changes suggested by you. In which sectors can the company diversify, keeping in mind the declining market for the product the company is manufacturing? |
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Answer» The suggestions are (i) To overcome the limitations of formal organisation, the management should encourage workers to interact and socialise with each other through get together outings. In this way, everyone will interact and like minded people will come closer. The net result will be more satisfied workforce. (ii) The management should try to decentralise organisation structure. (iii) The suggested area where the business can be diversified is textile machineries like embroidery units, sequencing units, buttoning units. A company X limited manufacturing comsetics, which has enjoyed a pre-eminent position in business, has grown in size. Its business was very good till 1991. But after that, new liberalised environment has seen entry of many MNC’s in the sector. With the result the market share of X limited has declined. The company had followed a very centralised business model with directors and divisional heads making even minor decisions. Before 1991, this business model had served the company very well as consumers has no choice. But now the company is under pressure to reform. |
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| 54. |
Which function of management is concerned with establishing relationships for the purpose of enabling people to work most effectively together in accomplishing objectives? What are the steps in the process of this function of management ? |
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Answer» Organizing is the process of identifying and grouping the work to be performed defining and delegating responsibility and authority, and establishing relationship for the purpose of enabling people to work most effectively together in accomplishing objectives. 1. Identification and classification of required activities. 2. Grouping of activities necessary for attainment of objectives. 3. Assigning each group to a manager with the authority (delegation) necessary to supervise it. 4. The provision for coordination horizontally (on the same organizational level) and vertically (in various division and departments). |
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| 55. |
Mr. Satheesh Babu, the General Manager of Venad automobiles decided to share some of his work with his newly appointed assistant manager Mr. Raju. This helped him to concentrate more on important tasks. Which management concept is referred here? |
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Answer» Delegation of Authority: Delegation means the granting of authority to subordinates to operate within the prescribed limits. It enables the manager to distribute his workload to others so that he can concentrate on important matters. |
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| 56. |
Identify it: It is the framework within which an organisation functions. |
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Answer» Organisational structure |
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| 57. |
Briefly describe any five advantages of effective delegation in the case of a business enterprise. |
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Answer» Importance of Delegation of Authority (1) Reduces the work load of managers : The managers are able to function more efficiently as they get more time to concentrate on important matters. (2) Employee development: Delegation empowers the employees by providing them the chance to use their skills,’gain experience and develop themselves for higher positions. (3) Motivation of employees : Responsibility for work builds the self-esteem of an employee and improves his confidence. He feels encouraged and tries to improvers performance. (4) Facilitation of.growth : Delegation helps in the expansion of an organisation by providing a ready workforce to take up leading positions in new ventures. (5) Superior subordinate relations: Delegation of authority establishes superior subordinate relationships, which are the basis of hierarchy of management. (6) Better co-ordination: The elements of delegation – authority, responsibility and accountability help to avoid overlapping of duties and duplication of effort. |
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| 58. |
“Organising is the backbone of management and it contributes to the success of an enterprise”. Point out your arguments in favour of this statement. |
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Answer» a. Organising is one of the most important functions of management which includes: 1. Identifying and grouping the work to be performed. 2. Defining and delegating authority and responsibility. 3. And establising relationships for the purpose of accomplishing objectives b. Importance of Organising 1. Specialisation: Since the activities are divided into convenient jobs and are assigned to a particular employee, it leads to specialisation, more productivity and efficiency. 2. Clarity in working relationship: It helps in creating well defined jobs and also clarifying authority – responsibility relationship between the superior and subordinates. 3. Optimum utilisation of resources: The proper assignment of jobs avoids overlapping of work and also makes possible the best use of resources. 4. Adaptation of change: It allows a business enterprise to adapt itself according to changes in the business environment. 5. Effective administration: Clarity in working relationships enables proper execution of work and brings effectiveness in administration. 6. Development of personnel: Organising stimulates creativity amongst the managers and subordinates. 7. Expansion and growth: Organising helps in the growth and diversification of an enterprise by adding more job positions, departments and product lines. |
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| 59. |
What is meant by organising? |
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Answer» Organising is one of the most important functions of management, which includes 1. Identifying and grouping the work to be performed. 2. Defining and delegating authority and responsibility. 3. And establishing relationships for the purpose of accomplishing objectives. |
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| 60. |
Explain the concept of delegation and decentralisation bringing out their distinction. |
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Answer» Organising is one of the most important functions of management, which includes (1) Identifying and grouping the work to be performed. (2) Defining and delegating authority and responsibility. (3) and establising relationships for the purpose of accomplishing objectives. |
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| 61. |
Give the meaning of 'Divisional Structure' of organising. State any four advantages. |
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Answer» Divisional structure is an organisational structure comprising of separate business units or divisions. It is suitable for those enterprises: (i) Where two or more products are manufactured. (ii) When an organisation grows and diversifies. Advantages of divisional structure: (i) Product specialization helps in the development of varied skills. (ii) It helps in the fixation of responsibility as divisional heads who are accountable for profits, revenues and costs related to their departments. (iii) It promotes flexibility, initiative and faster decision making as each division is an autonomous unit. (iv) It facilitates expansion and growth as new divisions can be added without interrupting the existing operations. (v) It reduces the problem of co-ordination between departments as all activities concerning a particular product line are integrated together. |
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| 62. |
A company which manufactures a popular brand of toys has been enjoying good market reputation .It has separate departements for prodcution marketing human resources and research and development Lately to use its brand name and alos to cash on to new business appoptunites it is thinking to diversify into manufacture of new range of electronic toys for which a new market is emerging (a) Identify the type of the organicational structure the company should adopt with diversification givew reasons in support of your answer (b) state any your benefits the company will derive from the organisation structure identified in part (a) |
| Answer» Divisional structure : since the company is diversifying in to manufacture of new range of electronic toys it needs to add more emplloyees create more departments and introduce new levels of management The business will get the following benefits by adopting the divisional structure (Explain any four) | |
| 63. |
Give the meaning of ‘organising as a process’. |
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Answer» Organising refers to the process of defining and grouping the activities of an enterprise and establishing authority relationship among them. |
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| 64. |
Define Organisation as a structure. |
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Answer» Organising is the process of defining and grouping the activities of the enterprise and establishing authority relationships among them. Or Organising is the process of identifying and grouping the work to be performed, assigning duties to job positions and establishing relationships for the purpose of accomplishing objectives. |
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| 65. |
Mr. Hassan, the General Manager of Almonsa Ltd. has decided to give some responsibility and decision making authority to the different levels of management so that he will be relieved of all daily routine activities.1. What is the concept referred to?2. State the benefit derived through this process.3. How does it differ from delegation of authority? |
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Answer» 1. Delegation of Authority: Delegation means the granting of authority to subordinates to operate within the prescribed limits. It enables the manager to distribute his workload to others so that he can concentrate on important matters. 2. Importance of Delegation of Authority: a. Reduces the workload of managers: The managers are able to function more efficiently as they get more time to concentrate on important matters. b. Employee development: Delegation empowers the employees by providing them with the chance to use their skills, gain experience and develop themselves for higher positions. c. Motivation of employees: Responsibility for work builds the self-esteem of an employee and improves his confidence. He feels encouraged and tries to improvers performance. d. Facilitation of growth: Delegation helps in the expansion of an organisation by providing a ready workforce to take up leading positions in new ventures. e. Superior-subordinate relations: Delegation of authority establishes superior subordinate relationships, which are the basis of hierarchy of management. f. Better co-ordination: The elements of delegation authority, responsibility and accountability help to avoid overlapping of duties and duplication of effort |
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| 66. |
Mr. Sreekumar is the leader of a marketing item. There are 25 salesmen under him. Due to the increased number of subordinates he cannot supervise them efficiently and hence the company could not achieve the target.Name the element of organisational structure violated here. |
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Answer» Span of control |
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| 67. |
Vimal Cloth Ltd. Was manufacturing only fabrics. After having great success in fabric business the directors of Vimal Cloth Ltd. Acquired three new manufacturing units and started selling multi-products in market. (Electronics, Mobile phone, Cements) They decided that an individual who has capability and competence to handle responsibility would head each unit. The vacant position will be filled by women candidate only. (a) State the type of organisation structure Vimal Cloth Ltd. have followed as a producer of single product. (b) Suggest which type of organisational structure Director must adopt now and explain its advantages. |
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Answer» (a) Functional, (b) Divisional. Advantages of divisional structure. |
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| 68. |
Name any two elements of delegation. |
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Answer» (1) Identifying and grouping the work to be performed. (2) Defining and delegating authority and . responsibility. (3) and establising relationships for the purpose of accomplishing objectives. |
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| 69. |
Rearrange the following as it takes place in the process of organising:(a) establishing authority relationship (b) division of work (c) co-ordination of activities (d) departmentation |
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Answer» Division of work (b) Departmentation (c) Establishing authority relationship (d) Co-ordination of activities |
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| 70. |
Give the meaning of 'Organising as a Process'. |
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Answer» Organising is the process of identifying and grouping tire work to be performed, assigning duties to job positions and establishing relationships for the purpose of accomplishing objectives. |
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| 71. |
Rish, Ashu and Ravi have deicded to start a business of manufactureing toys They identified the following main activities which they have ot perform (i) purchase of raw materials (ii) purchases of machineery (iii) prodcution of toys (iv) Arrangement of finance (v) sale of toys (viu) indentifiying the areas where they can sell their toys (vii) selection of employees (a) production (b) finacnce (c ) marketing , (d) personnel A Identify the funciton of management involved in the above mentioned para B Quate the lines from hte above para which help you in indenfiying this function C state the steps followed in the process of this funciton of management |
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Answer» A. Organising B They identified the following main activites which they have to perform in order to facilitate the work they thought that four managers should appointed to look after ltbgt (a) Prodcution (b) Finance (c ) Marketing (d) Personnel C steps organising process (i) Identifiying and dividing the work into manageable activites (ii) Assignement of duites to job positions (iv) Establishing reporting relationships so that each individual knows from whom he has to take orders and to whoem he is accountable |
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| 72. |
Mr.Rajagopal is a foreman in a spinning mill and there are 25 employees working under him. Due to the increased number of subordinates he cannot control them effectively and hence the company could not achieve the target. Identify the element or organizational structure violated here. |
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Answer» Span of control |
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| 73. |
In a manufacturing firm, the Production Manager entrusted a part of his work to the foreman in the factoty. Examine two possible benefits to be gained from this for this Foreman. |
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Answer» (a) Delegation of authority (b) It helps the foreman to take quick decision. It helps to develop creative skill and motivate the subordinate. |
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| 74. |
Rohan a sole proprietor was running food catering business in North Delhi. He got great success and profit margin in this business. Due to excess demand in the market he expanded his business and separated departments as purchase, production, finance and marketing Which type of organisational structure would you suggest him? Enumerate its two benefits. |
| Answer» Correct Answer - Functional. | |
| 75. |
To make the annual function of the school successful the principal of the school divided all the activities into task groups each dealing with a specific area like rehearsals, decoration, stage management, refreshments etc. Each group was placed under the overall supervision of a senior teacher. Identify the function of management performed by the Principal in doing so. |
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Answer» Function of management performed by the Principal in doing so.Organising |
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| 76. |
In a school fete the whole activity is divided in to task groups each dealing with a specific area like the food committee the decoration committee the ticketing committee and so on these are under the overall supervison of the ofical in charge of the event coordinating relationships are established among the various groups to enable smooth inteacttion and clarity about each group contribution towards the event (a) Identify and state the function of mansagement highlighteed above (b) state the steps involved in the funciton of management identified in part (a) by qunoting the lines from the above paragraph. |
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Answer» (a) Organsing (given meaning) (b) The following steps emerge in the process of organising (Explain the steps) ….the whole activity is divided in to task groups… (ii) Departmentalisation/Departmentation …..each deling with a specific area....... (iii) Assignment of duties ...the food committee the decoration committee the ticketing committee.. are under the overall (iv) Estabkishing reporting relationships ...Coordinating relationships establioshed ...clarity about each group contribution toward the event. |
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| 77. |
Vishal is a production manager in an auto company. He held a meeting with production unit including supervisor, foreman and employees. He set3 the target to produce 1,000 units in one month and assures then to give full co-operation. He delegates powers to operational level to achieve the targets in the time. (a) Identify organisational activity which Vishal communicated to his subordinates and explain its benefits. |
| Answer» Correct Answer - (a) Delegation. | |
| 78. |
Uranus Limited is a company dealing in metal products. The work is mainly divided into functions including production, purchase, marketing, accounts and personnel. Identify the type of organisational structure followed by the organisation.(a) Functional structure(b) Relational structure(c) Divisional structure(d) None of the above |
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Answer» Correct option is (a) Functional structure |
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| 79. |
For effective delegation the authoryt granted must be commensurte with the assigned responsibilty why? |
| Answer» This is so because if authority granted is more than responsibility it may lead to misuse of authority and if responsibility assigned is more than authority it may make a person ineffective. | |
| 80. |
The employees of manik Ltd a software company have formed a dramatic group for their recreation name the type of organisation so formed and state its four features |
| Answer» Informal organisation | |
| 81. |
State the features of informal organisation. Or The employees of Manav Ltd, have formed a dramatic group for their recreaation. Identify the type of organisation and explain it briefly. |
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Answer» (i) Informal organisation. (ii) The features of informal organisation are: (a) It orginates from within the formal organisation, due to interaction among employees. (b) The standard of behaviour evolve from group norms. (c) Communication is free and independent. (d) It emerges spontaneously and not created deliberately. |
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| 82. |
Identify the type of organisation structure that should be follwed by the company in each case (i) Vrinda Ltd grows so it needs to add more employees create new departments and introduce new levels of mamagement (ii) Shreya Ltd is a large organisation having diverisified activities and operation requires a high degree of speicalisation |
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Answer» (i) Divisional structure (ii) Functional structure |
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| 83. |
"For effective delegation, the authority granted must be commensurate with the assigned responsibility" Why? |
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Answer» "For effective delegation, the authority granted must be commensurate with the assigned responsibility" because if authority granted is more than responsibility, it may lead to misuse of the authority and if responsibility is more than the authority it may make a person ineffective. |
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| 84. |
It is the system of job positions the roles assigned to them and the authority responsibility among the various position Identify it |
| Answer» Organisation structure. | |
| 85. |
Decentralisation: A Strength The McNeil name has been associated with the manufacturing and sale of pharmaceutical products since 1870, when Robert McNeil opened his first retail drug outlet in Pennsylvania. Growing as a producer of prescription pharmceuticas, McNeil Laboratories, lnc. was incorporated in the U.S. in 1933, and became a member of the Johnson & Johnson family of companies in 1959. McNeil Consumer Helathcare began operations in Canada in an existing administrative Johnson & Johnson facility in Guelph, Ontario in 1980. McNeil Consumer Healthcare (nonprescription pharmaceutical products) in Guelph, Ontario is a member of the Johnson & Johnson family of companies in Canada. An important difference between Johnson and most other companies - is the concept of decentralised management. Instead of operating as one large multi-billion dollar corporation, Johnson & Johnson is operated as 190 smaller companies, each focused on a specific medical or product franchise and/or geographic area, with each affiliate generating multiple options for growth. Through decentralisation we combine the advantages of being big with the agility and focus of smaller firms. Decentralisation enables each company to stay close to its customer, maintain short lines of communication with customers and employees, and accelerate the development of talent. The Johnson & Johnson - Merck Consumer Pharmaceuticals company also operates from our Woodlawn Road facility in Guelph. On the basis of the above paragraph, define Decentralised Organisation. |
| Answer» Decentralised Organisation They are those organisations in which authority is delegated throughout the management hierarchy, upto the lowest level, facilitating quick decision-making. | |
| 86. |
Explain : (i) Benefits of specialisation. (ii) Development of personnel, as importance of organising. or Explain : (i) Expansion and growth. (ii) Optimum utilisation of reasources, as importance of organising. |
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Answer» 1. Benefits of Specialization:Under organising, the whole work is systematically allocated and divided into different parts. Right man is put at the right job. It increases the efficiency of workers and motivates them to put their best into the work. Repetitive performance of a specific job on a regular basis helps a worker gain experience and gets specialized in that job. As a result, organising leads to specialization. 2.Development of Personnel:Organising creates structure of an organisation. That structure provides a basis or framework for assigning and performing various functions efficiently. Effective delegation allows managers to assign jobs of routine nature to their subordinates.The reduction in workload enables the managers to develop new methods and techniques of performing the jobs efficiently and to explore new areas for the growth of an organisation. On the other hand, delegation develops an ability among the subordinates to deal effectively with the challenges and also helps them grow to realize their full potential. |
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| 87. |
Give two expalnes of infromal groups |
| Answer» These circles are known as informal groups at the workplace. These groups are formed on the basis of common likes, dislikes, prejudices, contacts, language, interests, attitudes of the members. It includes interest group and friendship group. | |
| 88. |
How you would say that organising establishes clarity in working relations? |
| Answer» The establishment of working relationships claarifies lines of communication and specifies who has to report to whom. In this way, organising establishes clarity in working relations. | |
| 89. |
What type of strucature can a formal organisation have? |
| Answer» Formal structure organizations usually have a hierarchical pyramid structure with a company president, CEO and senior managers at the top; mid-level managers in the middle; low-level managers at the bottom. | |
| 90. |
Which type of organisation having diversified activites requiring high degree of specialisation in operation ? |
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Answer» Functional structure is usually suitable for large organisations who deal with number of varying functions requiring high degree of specialisation. The following points highlight the suitability of functional structure. i. Large Size : A large size organisation can function smoothly, if the work is divided into various departments. Departmentalisation in large organisation improves managerial efficiency and the degree of control. Thereby, the work proceeds smoothly. ii. Varying Functions : Dealing with diverse varying functions simultaneously requires high degree of coordination so as to improve efficiency. By a clear division of activities in various departments, a functional structure promotes coordination among the various functions and thereby, ensures smooth functioning. iii. Requirement of Specialisation : Varying functions in an organisation can be performed better if dealt with specialisation. With departmentalisation, each department can function independently and specialise in their respective functions. |
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| 91. |
Identify a suitable organisation structure for a large scale organisation, having diversified activities requiring high degree of specialization in operations. |
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Answer» Functional organisation structure |
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| 92. |
An organisation with diversified activities should adopt which kind of structure? |
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Answer» An organisation with diversified activities should adopt divisional structure. The divisional structure is a type of organizational structure that groups each organizational function into a division. ... Each division contains all the necessary resources and functions within it to support that product line or geography (for example, its own finance, IT, and marketing departments). |
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| 93. |
Give any two objectives of organising. |
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Answer» Two objective of organising are : (i) To coordinate human efforts. (ii) To assemble resources. |
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| 94. |
Identify the type of suitable organisation structure for a large scale organisation having diversified activities requiring high degree of specialisation in operations. |
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Answer» Functional structure. |
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| 95. |
Explain how (i) Adaptation to change, and (ii) Effective administration, make organising important. |
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Answer» (i) Adaptation to change Organising facilitates modification in organisation structure and revision of inter-relationships among people in order to adapt to environmental changes. (ii) Effective administration Organising gives a a clear description of duties and responsibilities of each individual. This helps to avoid confusion regarding work and avoids duplication of activities. This helps in bringing efficiency in administration. |
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| 96. |
How does organising lead to specialisation? |
| Answer» Organising leads to systematic allocation of work amongst the workforce. Repetitive performance of a particular task allows a worker to gain experience in that area and hence leads to specialisation. | |
| 97. |
Assertion(A): Organising helps management in implementing the principle of initiative among employees.Explanation(R): Organising satisfies the subordinate’s need for recognition and provides them with opportunities to develop and exercise initiative.(a) Both (A) and (R) are true and (R) is the correct explanation of (A)(b) Both (A) and (R) are true but (R) is not the correct explanation of A(c) (A) is true, but (R) is false(d) (A) is false, but (R) is true |
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Answer» Correct option is (a) Both (A) and (R) are true and (R) is the correct explanation of (A) |
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| 98. |
Assertion(A): Functional Organization helps in increasing managerial and operational efficiency and this results in increased profit.Explanation(R): Functional Organization promotes efficiency in utilisation of manpower as employees perform similar tasks within a department and are able to improve performance.(a) Both (A) and (R) are true and (R) is the correct explanation of (A)(b) Both (A) and (R) are true but (R) is not the correct explanation of A(c) (A) is true, but (R) is false(d) (A) is false, but (R) is true |
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Answer» Correct option is (a) Both (A) and (R) are true and (R) is the correct explanation of (A) |
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| 99. |
Which of the following does not follow the scalar chain? (a) Functional structure (b) Divisional structure (c) Formal organisation (d) Informal organisation |
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Answer» (d) Informal organisation does not follow the scalar chain. |
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| 100. |
Centralisation refers to (a) retention of decision making authority (b) dispersal of decision making authority (c) creating divisions as profit centres (d) opening new centres or branches |
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Answer» (a) Centralisation implies concentration of all decision making functions at the apex of the management. |
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