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35 questions · timed · auto-graded

Question 11 Mark
What is meant by span of management?
Answer
Span of management refers to the number of subordinates that can be effectively managed by a superior.
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Question 21 Mark
National Vritech 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 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. Identify the concept of management discussed above.
Answer
Decentralisation
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Question 31 Mark
"The existence of informal organisation depends on the formal organisation." Comment.
Answer
Informal organisation refers to network of social and friendly relations established between the employees working at different job positions. The network of these job positions is known as formal organisation. So the framework within which the informal organisation establishes gets created by formal organisation only.
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Question 41 Mark
Name the type of organisation in which (a) Friendly relationship exists among members(b) Official relationship exists among the members.
Answer
(a) Informal organisation,(b) Formal organisation.
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Question 51 Mark
What type of structures can a formal organisation have?
Answer
(i) Functional structure(ii) Divisional structure
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Question 71 Mark
If responsibility is more than the authority. What would be its impact on working of an organisation?
Answer
It would become difficult to perform the responsibilities.
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Question 81 Mark
Whether decentralisation increases the importance of subordinates or reduces it?
Answer
It increases the importance of subordinates by giving them authority.
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Question 91 Mark
Which of the following is the ideal situation?(i) Authority $>$ Responsibility(ii) Authority $=$ Responsibility(iii) Authority < Responsibility
Answer
The ideal situation is (ii) Authority = Responsibility.
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Question 101 Mark
In ABC Ltd. all the decisions are taken by top level management only. Which policy is followed by the organisation? Explain the drawback of this organisation.
Answer
This organisation is following the policy of centralisation and the biggest drawback of this organisation is delay in decision-making.
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Question 111 Mark
Define job description.
Answer
Job description defines the responsibilities, activities and authority related to a job. It clearly defines the contents of job.
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Question 131 Mark
Name the concept which reduces the work load of a manager.
Answer
Delegation of authority' reduces the work load of a manager.
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Question 141 Mark
Distinguish between formal and informal on the basis of purpose.
Answer
The purpose of formal organisation is to achieve organisational goal whereas the purpose of informal organisation is psychological satisfaction of employees.
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Question 151 Mark
Name the organisation in which employees are allowed to communicate freely and there are no rules and regulations.
Answer
In informal organisation, employees can communicate freely.
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Question 161 Mark
How informal organisation is created?
Answer
It is created due to friendly and social interaction of employees.
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Question 171 Mark
Out of formal and informal organisation, which is dependent upon which?
Answer
Informal is dependent upon formal that is why, first informal is set up, then formal.
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Question 181 Mark
Which organisational structure is suitable for a uni-product manufacturing company?
Answer
Functional structure.
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Question 191 Mark
Which organisational structure is suitable for a multi-product manufacturing company?
Answer
Divisional structure.
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Question 201 Mark
After completing a course in Travel and Tourism, Vaibhav started his own travel agency. In order to ensure smooth functioning of his business, he decided to create fourteen job positions divided into four departments on the basis of functions namely front office department, including online query, reservation department, accommodation booking department and securing payment department. In order to avoid conflicts, he clearly assigned the line of authority and area of responsibilities for each job position.(a) Which function of management is being described in the above lines?(b) Identify the framework created by Vaibhav.(c) Name the type of framework created by Vaibhav.(d) Give two advantages of that frame work.
Answer
(a) Organising function
(b) Organisational Structure
(c) Functional Structure
(d) Advantages
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Question 211 Mark
Royal Ltd. decided that whenever a person reaches a particular age he will be promoted. Influenced by this plan of the company, several employees from other companies also joined the firm. But within few days they realised that the firm has pre-determined relation structure without free communication.On the basis of this, answer the following questions.(a) Identify the type of organisation described here.(b) Point out any two limitations of this type of organisation.
Answer
(a) Formal. (b) Limitations
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Question 221 Mark
The responsibility of a firm should be divided among various levels such as top level, middle level, and lower level. Identify the concept of management function and state its importance.
Answer
Decentralisation
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Question 231 Mark
Manager of XYZ Ltd. is over burdened with routine work and is unable to concentrate on its objectives and other important issues of the firm. To solve this problem which management concept should be followed by the manager? Also explain the related function.
Answer
Delegation.
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Question 241 Mark
A Manager increased the production target from 500 units to 700 units per month but the authority to draw raw material was not given by him. The employees were not able to meet the new target. Who should be held responsible for this and which principle has been violated here? Explain.
Answer
Principle of Authority and Responsibility
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Question 251 Mark
Vishal is a production manager in an auto company. He held a meeting with production unit including supervisor, foreman and employees. He sets the target to produce 1,000 units in one month and assures them 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
Delegation.
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Question 261 Mark
The Principal of ABC Public School ordered the staff that they will be allowed to sit in the staffroom situated in their block. No teacher will be allowed to sit in another staffroom. During school's hours, teachers can meet teachers of their department only for work-related matters. He wants each teacher to strictly work as per rules and directions given by him.Identify the type of organisation in this and state disadvantage of such organisation.
Answer
Formal organisation. For disadvantages.
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Question 271 Mark
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
Functional.
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Question 281 Mark
'Shan Spices Ltd.' is the manufacturer of different food specific spices like Rajmaa Masala, Cholley Masala, AalooParantha Masala, etc. Mr Raghav, the owner of the company has created different departments for purchase, production, marketing, finance and human resource. There are thirty employees working in the organisation. Planning is of paramount importance to the company as Mr Raghav believes that effective planning leads to achievement of organisational objectives. So in order to make employees focus on objectives, he issued instructions that during working hours only official matters will be discussed. He made certain rules and code of conduct for the employees to follow, according to which employees are not allowed to visit and talk to the employees of other departments except for official work. He emphasised on work performance which resulted in smooth functioning of the organisation.(a) Identify and state the type of organisation mentioned in the above para.(b) State one feature of the concept identified in part (a) as mentioned in the above para.(c) What was the purpose behind the formulation of rules for the employees that restricted their personal communication with the employees of other departments?
Answer
(a) Formal organisation.
(b) Focus on objective and work performance.
(c) Avoidance of the emergence of informal organisation which may obstruct the fulfilment of organisational goals
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Question 301 Mark
Is organisational structure essential to provide relationship between various positions in the organisation?
Answer
Yes, it is essential.
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Question 311 Mark
The number of subordinates that can be effectively managed by a superior refers to which aspect of management?
Answer
Span of management.
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Question 331 Mark
State the relationship between authority, responsibility and accountability.
Answer
(i) Authority is delegated, responsibility is assured and accountability is imposed.
(ii) Responsibility is derived from authority and accountability is derived from responsibility
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Question 341 Mark
What would be the effect of no delegation of work?
Answer
There will be delay in work and manager will become overburdened.
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Question 351 Mark
State whether the principle of Scalar Chain is followed in informal organisation or not?
Answer
No, it is not followed.
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1 Marks Question - Business Studies STD 12 Commerce Questions - Vidyadip