Which of the following importance of Organising reduce the workload as well as enhance productivity?

Organising MCQ Chapter 4

Below are some of the very important NCERT Organising MCQ Class 12 Business Studies Chapter 5 with Answers. These Organising MCQ have been prepared by expert teachers and subject experts based on the latest syllabus and pattern of term 1 and term 2. We have given these Organising MCQ Class 12 Business Studies Questions with Answers to help students understand the concept.

MCQ Questions for Class 12 Business Studies Chapter 5 are very important for the latest CBSE term 1 and term 2 pattern. These MCQs are very important for students who want to score high in CBSE Board.

We have put together these NCERT Questions Organising MCQ for Class 12 Business Studies Chapter 5 with Answers for the practice on a regular basis to score high in exams. Refer to these MCQs Questions with Answers here along with a detailed explanation.

MCQ 1-26

1. ____________ is the process of dividing work into manageable activities and then grouping the activities which are similar in nature.

(a) coordination
(b) departmentalization
(c) organisation structure
(d) delegation of authority

2. Which of the following importance of organising stimulates creativity among the manager?

(a) development of personnel
(b) optimum utilisation of resources
(c) expansion and growth
(d) none of the above

3. Which of the following is not a benefit of organising?

(a) clarity and working relationship
(b) adaptation to change
(c) expansion and growth
(d) identification and obtaining competitive personnel

4. Which of the following importance of organising reduces the workload as well as enhance is productivity?

(a) clarity in working relationships
(b) benefits of specialisation
(c) adaptation to change
(d) effective administration

5. Which of the following statements is true about the organising function of management?

(a) departmentalization is the first step in process of organising
(b) organising discourages creativity among the managers
(c) organising allows a business enterprise to accommodate changes in the business environment
(d) all of the above

6. Which of the following is not related to “Organising as a Process”?

(a) initiates implementation of plans
(b) provide framework for performing managerial and operating tasks
(c) clarifies jobs and working relationships
(d) effectively deploys resources

7. In order to make the “Annual Day” of the school successful event, the principal of the school segregated all the activities into task groups each one dealing with specific area. For instance, decoration, refreshment, backstage support etc. Each group was put under the charge of one teacher.

Identify the function of the management of formed by the principle by dividing the activities and assigning the duties?

(a) planning
(b) organising
(c) staffing
(d) directing

8. An IT company currently employing 6,000 people plans to expand its business through diversification. It aims to become a global leader. To achieve this goal, it has started shifting to a decentralized management system from a centralised one. Thus, ____________ function of management is being performed by the company to become a decentralized company.

(a) directing
(b) stuffing
(c) organising
(d) planning

9. Match the followings.

10. _____________ ensure that the heads of separate business units in the organisation are responsible for profit or loss of the unit and have authority over it.

(a) span of management
(b) divisional structure
(c) functional structure
(d) hierarchy of authority

11. Which type of organisational structure is the most suitable when the size of organisation is large and is producing one line of product?

(a) functional
(b) divisional
(c) both (a) and (b)
(d) none of these

12. Which of the following is a disadvantage of divisional structure?

(a) conflict may arise among different divisions with reference to allocation of funds
(b) more emphasis on departmental objective
(c) leads to inter-departmental come conflict
(d) leads to inflexibility

13. Which type of the organisational structure is the most suitable for those business enterprises where a large variety of products are manufactured?

(a) functional
(b) divisional
(c) both (a) and (b)
(d) none of the above

14. Which of the following is an advantage of functional structure?

(a) Leads to occupational specialisation
(b) Promotes control and coordination with a department
(c) Helps in increasing managerial operational efficiency
(d) All of the above

15. Which of the following gives shape to the organisational structure?

(a) extent of delegation
(b) employee strength
(c) span of management
(d) none of the above

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16. Which of the following is true regarding organisational structure?

(a) grouping of job of similar nature and the functional structure and organising this major function as separate department creates a divisional structure
(b) span of management mines the level of management in the organisational structure divisional structure
(c) makes training of employees easier as the focus is only on a limited range of skills
(d) all of the above

17. Tasty food limited has its registered office in Mumbai, manufacturing unit in Pune, and marketing department in Gurgaon. _______ type of organisation structure should be adopted by the company to achieve its objective.

(a) functional
(d) divisional
(c) both (a) and (b)
(d) neither (a) nor (b)

18. Match the following.

(a) (ii), (iii), (i)
(b) (iii), (ii), (i)
(c) (ii), (i), (iii)
(d) (iii), (i), (ii)

19. _______ is the obligation of a subordinate to perform properly the assigned duty.

(a) authority
(b) responsibility
(c) accountability
(d) none of these

20. ___________ implies being answerable for the final outcome.

(a) authority
(b) responsibility
(c) accountability
(d) none of these

21. Which of the following importance of delegation establishes superior subordinate relationship?

(a) employee development
(b) facilitation of growth
(c) motivation of employees
(d) basis of management hierarchy

22. An organisation is _______ when decision-making authority is retained by higher management level.

(a) centralised
(b) decentralized
(c) both (a) and (b)
(d) none of these

23. Which of the following statements is incorrect?

(a) superior-subordinate relationship is the source of origin of ‘responsibility’
(b) authority arises from established ‘scalar-chain’ which links various job position and level of an organisation
(c) centralisation leads to quick decision-making
(d) none of the above

24. Which of the following statements is not applicable to the concept of ‘accountability’?

(a) it implies being answerable for the final outcome
(b) it cannot be denied once authorities has been delegated and possibility has been accepted
(c) it cannot be delegated
(d) it flows downward

25. “It refers to the right of an individual to command his subordinate and to take action within the scope of his position.” Which element of delegation is being referred to in the above statement?

(a) accountability
(b) responsibility
(c) authority
(d) none of these

26. Match the following.

(a) (ii), (iii), (i)
(b) (iii), (ii), (i)
(c) (iii), (i), (ii)
(d) (ii), (i), (iii)

MCQ Answers

1. (b)

Once work has been divided into small and manageable activities, than those activities which are similar in nature, are grouped together. This process is called departmentalization. Department can be created on the basis of products, functions and territory. This brings specialisation in operation.

2. (a)

Organising stimulates creativity among the managers. Effective delegation allows the managers to reduce the workload by assigning routine jobs to the subordinate.

3. (d)

The significance of the organising function mainly arises from the fact that it helps in the survival and growth of an enterprise and equip it to meet various challenges.

4. (b)

Organising leads to a systematic allocation of jobs amongst the work force. This reduces the workload as well as enhance productivity because of the specific workers performing a specific job on a regular basis.

5. (c)

The process of organising allows a business enterprise to accommodate changes in the business environment. It allows the organisation structure to be suitably modified and a revision of inter-relationships among the managerial level to pave the way for a smooth transition.

6. (b)

Organising is a process that initiates implementation of plans by clarifying jobs and working relationships and effectively deploying resources for attainment of identified and desired results.

7. (b)

Organising essentially implies the process which coordinates human efforts, assembles resources and integrates both into a unified whole to be utiized for achieving specified objective.

8. (c)

Organising facilitates growth and diversification of activities through clear division of work. It helps to develop a proper organisation structure and the extent and nature of decentralization can be determined.

9. (c)

(i), (iii), (iv), (ii)

10. (b)

In a divisional structure, the organisation structure comprises of separate business unit for division. Each unit has the divisional manager responsible for performance and who has authority over the unit.

11. (a)

A functional structure is most suitable when the size of organisation is large, has the diversify the activities and operations require a high degree of specialisation.

12. (a)

Conflict may arise among different divisions with reference to allocations of funds and further a particular division makes it to maximize its profit at the cost of the other divisions.

13. (b)

Divisional

14. (d)

A functional structure leads to occupational specialisations in fishes is placed on specific functions. It promotes control and coordination within a department because of similarity in the task being performed. It helps in increasing managerial and operational efficiency and this results in increased profit.

15. (c)

The span of management, to a large extent. gives shape to the organisational structure. Span of management refers to the number of subordinates that can be effectively managed by a superior. This determines the level of management in the structure.

16. (b)

Span of management refers to the number of subordinates that can be effectively managed by a superior. This determines the level of management in the structure.

17. (a)

An organisation structure formed by grouping together all activities into functional departments and putting each department and the one coordinating head is called functional structure.

18. (a)

(ii), (iii), (i)

19. (b)

Responsibility is the obligation of a subordinate to properly perform the assigned duty. It arises from a superior-subordinate relationships because the subordinate is bound to perform the duties assigned to him by his superior.

20. (c)

Accountability implies being answerable for the final outcome. Once authorities has been delegated and responsibility accepted, one cannot deny accountability. It cannot be delegated and flow, therefore a subordinate will be accountable to the period for satisfactory performance of the work.

21. (d)

Delegation of authority establish his superiors-subordinate relationships, which are the basis of hierarchy of management. It is the degree and flow of authority which determine who has to report to whom.

22. (a)

Centralisation refers to the organisational structure where decision making power is confined to the top management and the subordinate needs to follow the instructions of the seniors.

23. (c)

In centralisation, the top management directs the day-to-day operations, and the subordinates have to report directly to the senior management. At times when there is no managerial staff, the subordinates are unable to take immediate decisions, does resulting in slowing down of business operations.

24. (d)

Accountability elements of delegation refers to the answer the ability of a subordinate to superior for the job or task that is assigned. Accountability flows in an upward direction, which means the subordinate is accountable to the superior.

25. (c)

Authority is the power to complete an assigned task. Without authority a subordinate is unable to execute the task perfectly. In order to complete the task as is expected by the manager, the manager has to provide authority of executing that task to the subordinate.

26. (a)

(ii), (iii), (i)

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Assertion-Reason Based MCQ

Code

1. Both assertion and reason are true and reason is the correct explanation of assertion.
2. Both assertion and reason are true but reason is not the correct explanation of assertion.  
3. Assertion is true but reason is false.
4. Assertion is false but reason is true. 

1. Assertion Identification and and division of work is the first step in process of organising.

Reason Organising involves identifying and avoiding the work that has to be done in accordance with previously determined plans.

2. Assertion Organising provides a clear description of jobs and related duties.

Reason Organising stimulates creativity among the managers.

3. Assertion Organising leads to the proper usage of all material financial and human resources.

Reason The proper assignment of job avoids overlapping of work and also makes possible the best use of resources.

4. Assertion It is essential for effective performance that a proper match is made between the nature of job and the ability of an individual. 

Reason It is not necessary to define the work of different job position and accordingly allocate work to various employees.

5. Assertion A proper organisation structure is essential to ensure a smooth flow of communication and better control over the operations of a business enterprise.

Reason An organisation structure provides the framework which enables the enterprise to function as an integrated unit by regulating the coordinating the responsibilities of individual and departments.

6. Assertion Delegation of authority allows more time for managers to concentrate on the task that are of higher importance for the organisation.

Reason Delegation allows for changing of the routine work which brings a sense of freedom.

7. Assertion Authority refers to the official powers and positions required to carry on any task.

Reason Accountability refers to the obligation on the part of the subordinates to home responsibility and authority are granted to see to it that the work is done.

8. Assertion Responsibility arises from a superior subordinate relationship.

Reason The subordinate is bound to perform the duties assigned to him by his superior.

9. Assertion Delegation helps in developing the talents of the employees.

Reason Delegation does not facilitate the growth of the enterprise.

10. Assertion Functional structure makes training of employees easier as the focus is only on a limited range of skills.

Reason Divisional heads are accountable for profits.

Assertion-Reasoning Based MCQ Answers

1. (1)

The organising function begins with the division of total work into smaller units. Each unit of total work is called a job. The division of work into smaller jobs lead to specialisation because jobs are assigned to individuals according to their qualifications and capabilities.

2. (2)

Organising provides a clear description of jobs and related duties. This helps to avoid confusion and duplication. Clarity in working relationships enables proper execution or work.

3. (1)

Avoidance of duplication of work helps in preventing confusion and minimising the wastage of resources and efforts.

4. (3)

Once the departments have been formed, each of them is placed under the charge of an individual. Jobs are then allocated to the members of each department in accordance to their skills and competencies.

5. (1)

The organisation structure can be defined as the framework within which managerial and operating tasks are performed. It specifies the relationships between people, work and resources.

6. (1)

By empowering the employees, the managers are able to function more efficiently as they get more time to concentrate on important topics. Freedom from doing routine work provides them with opportunities to excel in new areas.

7. (2)

When duties are assigned to subordinates then the required authority must also be conferred to him. The delegate is fully answerable to his superior for performance of the task assigned to him. Thus, the superior ensures performance through accountability by his subordinate.

8. (1)

Responsibility is the obligation of a subordinate to properly perform the assigned duty. It rises from a superior-subordinate relationship because the subordinate is bound to perform the duty assigned to him by his superior. Hence, responsibility flows upwards.

9. (3)

Delegation helps in the expansion of an organisation by providing a ready workforce to take up leading positions in new ventures. Trained and experienced employees are able to play significant roles in the launch of new projects by replicating the work ethos they have gained from existing units, in the newly set up branches.

10. (2)

Divisional heads are accountable for profits, as revenues and costs related to different departments can be easily identified and assigned to them. This provides a proper basis for performance measurement. It also helps in fixation of responsibility in cases of poor performance of the division and appropriate remedial action can be taken.

Case-Study Based MCQ

1. Read the following passage and answer accordingly.

“The Chocolate Makers” is a chocolate making company which has turnovers in crores. In order to manage the work in the organisation, the department 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 were performing similar task work under the same department. So the company now has HR, marketing and Finance department. The division is based on specific functions.

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

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

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

(i) Which type of organisation structure is discussed in the above case?

(a) functional
(b) divisional
(c) linear
(d) none of these

(ii) What will be the outcome of situation 2?

(a) increase in control and coordination
(b) quick decision making
(c) more initiatives
(d) flexibility

(iii) What do you think the profit is increasing as given in situation 3?

(a) due to product specialisation
(b) due to managerial and operational efficiency
(c) due to flexibility
(d) due to no repetition of task

(iv) What will be the result of situation 4?

(a) reduction in cost
(b) increase in cost
(c) stability to the organisation
(d) none of the above

2. Read the following passage and answer accordingly.

Sachin, the owner of “ABC 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 and quiet surroundings, he formed a team of 30 members to list the different ways that can be adopted to keep the area clean. Different people had different suggestion. Someone told to take help of local residents including young children, while another suggested to involve unemployed youth.

The idea to take the help of volunteers were also given. A combination of the most effective strategies after evaluating all options was selected for implementation. To achieve the desired goal and objective various activities were identified like

(A) purchase of essential items like dustbin, garbage bag, brooms etc.
(B) door to door collection of garbage
(C) recycling of garbage
(D) disposal of garbage etc.

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

(i) “To achieve the desired goal various activities were identified like ….”. Which step does this represent in the following organising?

(a) identification and division of work
(b) departmentalization
(c) assignment of duties
(d) establishing reporting relationships

(ii) “Thus, an organisational design was chosen which group similar activities together in order to minimise duplication of effort.” Which organisational design is being referred to in this line?

(a) functional
(b) divisional
(c) formal
(d) informal

(iii) “Thus, an organisational design was chosen which group similar activities together in order to minimise duplication of effort.” Which step and the process of organising is being referred to in this line?

(a) identification and division of work
(b) departmentalization
(c) assignment of duties
(d) establishing reporting relationships

(iv) “After identification of different activities the work was allocated to different members.” Which type does this represent in the process of organising?

(a) identification and division of work
(b) departmentalization
(c) assignment of duties
(d) establishing reporting relationships

Case-Study Based MCQ Answer

1. (i)(a) (ii)(a) (iii)(b) (iv)(a)

2. (i)(a) (ii)(a) (iii)(b) (iv)(c)

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Final Words

From the above article, you have practiced Organising MCQ of Class 12 Business Studies Chapter 5. We hope that the above-mentioned MCQs for term 1 of chapter 5 Organising MCQ would will surely help you in your exam. 

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