UNIT 3

1. An identified group of people contributing their efforts towards the attainment of goals is
called an
a) organization.
b) business.
c) management.
d) department.
Ans : a
2. Name the process which co-ordinates human efforts, assembles resources and
integrates both into a unified whole to be utilised for achieving specified objectives,
(a) Management
(b) Planning
(c) Organising
(d) Directing
Ans: c
3. Organising is a process by which the manager
(a) Establishes order out of chaos
(b) Removes conflict among people over work or responsibility sharing
(c) Creates an environment suitable for teamwork
(d) All of the above
Ans: d
4. It is defined as the framework within which managerial and operating tasks are
performed.
(a) Span of management
(b) Organisational structure
(c) Informal organisation
(d) None of the above
Ans: b
5. It refers to the number of subordinates that can be effectively managed by a superior,
(a) Organisational structure
(b) Informal organisation
(c) Span of management
(d) None of the above
Ans: c
6. As the span of management increases in an organisation, the number of levels of
management in the organisation
(a) Increases
(b) Decreases
(c) Remains unaffected
(d) None of the above
Ans: b

7. Uranus Limited is a company dealing in metal products. The work is mainly divided into
functions including production, purchase, marketing, accounts and personnel. Identify

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 the type of organisational structure followed by the organisation.
(a) Functional structure
(b) Relational structure
(c) Divisional structure
(d) None of the above
Ans: a
8. Identify the type of organisational structure which facilitates occupational specialisation,
(a) Functional structure
(b) Horizontal structure
(c) Network structure
(d) Divisional structure
Ans: a
9. Identify the type of organisational structure which makes training of employees easier,
as the focus is only on a limited range of skills.
(a) Network structure
(b) Divisional structure
(c) Functional structure
(d) Matrix structure
Ans: c
10. This type of organisational structure is most suitable when the size of the organisation is
large, has diversified activities and operations require a high degree of specialisation,
(a) Divisional structure
(b) Functional structure
(c) Network structure
(d) Matrix structure
Ans: b
11. Under this type of organisational structure, manpower is grouped on the basis of
different products manufactured.
(a) Divisional structure
(b) Functional structure
(c) Network structure
(d) Matrix structure
Ans: a
12. Which of the following is not a feature of functional structure?
(a) It promotes functional specialisation.
(b) Managerial development is difficult.
(c) It is easy to fix responsiblity for performance.
(d) It is an economical structure to maintain.
Ans: c
13. Which of the following is not a merit of functional structure?
(a) It promotes control and co-ordination within a department.
(b) It makes training of employees easier, as the focus is only on a limited range of skills.
(c) It ensures that different products get due attention.
(d) It leads to occupational specialisation.
Ans : c

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 14. Which of the following is not a merit of divisional structure?
(a) It promotes product specialisation.
(b) It ensures that different functions get due attention.
(c) It promotes flexibility and faster decision making.
(d) It facilitates expansion and growth as new divisions.
Ans : b
15. Identify the correct sequence of steps to be followed in an organising process.
(a) Departmentalisation, Establishing reporting relationships, Assignment of duties,
Identification and division of work
(b) Identification and division of work, Departmentalisation, Assignment of duties,
Establishing reporting relationships
(c) Identification and division of work, Assignment of duties, Departmentalisation,
Establishing reporting relationships
(d) Identification and division of work, Establishing reporting relationships,
Departmentalisation, Assignment of duties
Ans : b
16. Which of the following is not a feature of formal organisation?
(a) It specifies the relationships among various job positions.
(b) The standards of behaviour of employees are evolved from group norms.
(c) It is deliberately designed by the top management.
(d) It places less emphasis on interpersonal relationships among the employees.
Ans : b
17. Which of the following is not a merit of informal organisation?
(a) It leads to faster spread of information and speedy feedback.
(b) It helps to fulfill the social needs of the members.
(c) It .does not fulfill inadequacies in the formal organisation.
(d) All of the above
Ans : c
18. Which of the following is not an element of delegation?
(a) Responsibilty
(b) Authority
(c) Accountability
(d) Decentralisation
Ans : d
19. It arises from the established scalar chain which links the various job positions and
levels of an organisation.
(a) Authority
(b) Responsibility
(c) All of the above
(d) None of the above
Ans : a

20. Rules, duties and responsibilities or workers are given in writing in______________.
a) formal organization.
b) informal organization.

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 c) business or organisation.
d) strategic organization.
Ans : a
21. Which arises from mans quest for social satisfaction?
a) formal organization.
b) informal organization.
c) business or organisation.
d) strategic organization.
Ans : b
22. It is the obligation of a subordinate to properly perform the assigned duty.
(a) Responsibility
(b) Authority
(c) Accountability
(d) All of the above
Ans : a
23. The responsibility flows
(a) In all directions
(b) Downwards
(c) Upwards
(d) None of the above
Ans : c
24. Authority granted to an employee should be
(a) More than the responsibility entrusted to him
(b) Less than the responsibility entrusted to him
(c) Equal to the responsibility entrusted to him
(d) All of the above
Ans : c
25. It helps the managers to ensure that their subordinate discharges his duties properly.
(a) Responsibility
(b) Authority
(c) Accountability
(d) All of the above
Ans : c
26. The accountability flows
(a) In all directions
(b) Downwards
(c) Upwards
(d) None of the above
Ans : c
27. Which of the following can be delegated?
(a) Responsibility
(b) Authority
(c) Accountability
(d) All of the above
Ans : b

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 28. Authority arises from
(a) Responsibility
(b)Formal position
(c) Accountability
(d) All of the above
Ans : a
29. Responsibility is derived from
(a) Authority
(b)Formal position
(c) Accountability
(d) All of the above
Ans : a
30. Accountability is derived from
(a) Authority
(b) Formal position
(c) Responsibility
(d) All of the above
Ans : c
31. When decision-making authority is retained organisation is said to be by higher
management levels, an
(a) Decentralised
(b) Centralised
(c) Fragmented
(d) None of the above
Ans:b
32. Selection is ______ in its application as much as it seeks to eliminate as many
unqualified applications as possible in order to identify the right candidates.
a) Both negative and positive
b) Positive
c) Negative
d) None of the above
Ans : c
33. Rearrange the following steps involved in the selection process.

i. External environment
ii. Internal environment
iii. Preliminary interview
iv. Selection test
v. Employment interview
vi. Reference and background analysis
vii. Selection decision
viii. Physical examination
ix. Job offer
x. Employment contract
xi. Evaluation

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 a. xi, x, ix, viii, vii, vi, v, iv, iii, ii, i
b. i, ii, iii, iv, v, vi, vii, viii, ix, x, xi
c. v, i, xi, ii, iv, ix, iii, vi, viii, x, ix, vii
d. i, iii, iv, v, vii, ix, xi, ii, vi, viii, x
ANSWER: c. v, i, xi, ii, iv, ix, iii, vi, viii, x, ix, vii
34. In __________, the interviewer uses pre-set standardised questions which are put
to all applicants.

a. Unstructured interview
b. Structured interview
c. Behavioural interview
d. Mixed interview
ANSWER: b. Structured interview
35. _______ occurs when an interviewer judges an applicant's entire potential for job
performance on the basis of a single trait, such as how the applicant dresses or
talks.
a. Stress producing
b. Halo - effect
c. Unstructured
d. None of the above
ANSWER: b. Halo - effect
36. Which of the selection steps is the most critical?
a. Physical examination
b. Selection decision
c. Reference and background checks
d. Employment interviews
Ans: b. Selection decision
37. ___________ is a systematic and planned introduction of employees to their jobs,
their co-workers and the organisation.
a. Job evaluation
b. Investiture orientation
c. Orientation
d. Placement
ANSWER: c. Orientation
38. Which of the below options are the topics covered in employee orientation
programme?

a. Training and education benefit

b. To employee counsellor
c. Relationship to other jobs
d. Disciplinary regulations
e. All of the above
ANSWER: e. All of the above
39. ______ refers to the allocation of people to jobs; it includes initial assignment of
new employees, and promotion, transfer, or demotion of present employees.

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 a. Recruitment
b. Placement
c. Selection
d. None of the above
ANSWER: b. Placement
40. How does training and development offer competitive advantage to an
organisation?

a. Removing performance deficiencies

b. Deficiency is caused by a lack of ability
c. Individuals have the aptitude and motivation to learn
d. None of the above
Ans:a. Removing performance deficiencies
41. Which of the following is a benefit of employee training?

a. Improves morale
b. Helps people identify with organisational goals
c. Provides a good climate for learning, growth and co - ordination
d. None of the above
ANSWER: b. Helps people identify with organisational goals
42. ______ is an objective assessment of an individual's performance against well-
defined benchmarks.

a. Performance Appraisal
b. HR Planning
c. Information for goal identification
d. None of the above
ANSWER: a. Performance Appraisal
43. Which of these is the main purpose of employee assessment?

a. Making correct decisions

b. To effect promotions based on competence and performance
c. Establish job expectations
d. None of the above
ANSWER: b. To effect promotions based on competence and performance
44. How performance appraisal can contribute to a firm's competitive advantage?

a. Ensures legal compliances

b. Minimising job dissatisfaction and turnover
c. Improves performance
d. All of the above
ANSWER: d. All of the above
45. Which method is used for evaluating the performance of executives or
supervisory positions?
a) Psychological Appraisals
b. Assessment Centres

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 c. Behaviourally Anchored Rating Scales
d. 360 degree feedback
Ans : b

46. What does the 360 degree feedback assess?

a. Communication Skills
b. Behavioural Aspect
c. Team – building skills
d. Soft skills
Ans : d
47. Which of these options are the activities that constitute the core of
performance management?
a. Performance interview
b. Archiving performance data
c. Use of appraisal data
d. All of the above
Ans: d
48. Which is the biggest challenge faced while conducting performance appraisal?
a. Evaluating performance of self – managed teams
b. Presence of a formal appeal process
c. Appraisals based on traits are to be avoided
d. None of the above
Ans: a
49. When designing an actual appraisal method, the two basic considerations are
a) who should measure and when to measure
b) when to measure and what to measure
c) what to measure and who should measure
d) what to measure and how to measure
Ans: d
50. Which performance appraisal technique lists traits and a range of performance values for each
trait?
a) behaviourally anchored rating scale
b) graphic rating scale
c) forced distribution
d) critical incident Ans: b

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