Which of the following types of information is conveyed by a traditional organization chart?

Latest Organization structure MCQ Objective Questions

Organization structure MCQ Question 1:

Gracuna's name is linked with:

1. Delegation of authority
2. Span of control
3. Unity of command
4. None of the above

Answer (Detailed Solution Below)

Option 2 : Span of control

The correct answer is Span of control.

• French management consultant V.A. Graicunas conducted a research on the connection between superiors and subordinates, although it was not based on empirical data.
• He created a formula to analyse this relationship in mathematics. According to his theory, as the number of subordinates rises, so do the potential relationships.
• In any organisation, Graicemas has identified three distinct types of interactions between superiors and subordinates, raising the question of how many subordinates a superior can effectively manage.
• Thus, Gracuna's name is linked with Span of control which is also known as span of management.

Organization structure MCQ Question 2:

In which type of organisation the rules, duties and responsibilities are given in writing?

1. Formal organisation
2. Informal organisation
3. Strategic organisation
4. Both (B) and (C)

Answer (Detailed Solution Below)

Option 1 : Formal organisation

The Correct Answer is Formal organisation

• It is the type of organisation where rules, duties and responsibilities are clearly defined and given in writing to achieve a specific goal.
• In this type of organisation the hierarchy structure of the organisation is pre determined
• Formal organisation is constructed  by managemment intentionally to achieve specific organisation goal.

Organization structure MCQ Question 3:

The coordination which works at various hierarchical levels is

1. Horizontal
2. Vertical
3. Informal
4. Cross
5. None of These

Answer (Detailed Solution Below)

Option 2 : Vertical

The correct answer is Vertical

Coordination is defined as the orderly arrangement of the individual and group efforts to ensure maximum unity and efficiency in achieving common objectives.

Coordination is required at all vertical hierarchical levels which are divided into three categories namely, Top Level, Middle level, and lower-level management. 

• The top-level of management requires coordination to coordinate the activities of the whole organization, keeping in mind the desired goals.
• The middle level of management requires coordination to coordinate the activities of different departments within the organization.
• The Lower level of management requires coordination to coordinate the activities of workers and employees for fulfilment of their goals.

Organization structure MCQ Question 4:

The SWOT approach assesses an organization's:

1. Strengths, Weaknesses, Opportunities, Threats
2. Signs, Worries, Objectives, Techniques
3. Organization, Types
4. Speed, Wants, Order, Timing

Answer (Detailed Solution Below)

Option 1 : Strengths, Weaknesses, Opportunities, Threats

The correct answer is Strengths, Weaknesses, Opportunities, Threats.

• SWOT organizational analysis
  • It is a strategic planning process that enables companies and other organizations to focus on their strengths and weaknesses, as well as the opportunities and threats in their environment.
  • This flexible planning process provides a popular approach to guiding organizations to accomplish their objectives and goals.
  • SWOT analysis provides the foundation for effective strategic management through a flexible, if somewhat vague, framework.
  • A SWOT analysis is a strategic planning method that assesses an organization’s Strengths, Weaknesses, Opportunities, and Threats, which summarizes the abbreviation. Sometimes, the abbreviation appears as TOWS or WOTS up analysis. Regardless, the elements in each abbreviation are the same. Hence, Option 1 is correct.

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Organization structure MCQ Question 5:

One of the most popular ways to group activities is by_________.

1. geography
2. product
3. process
4. function

Answer (Detailed Solution Below)

Option 4 : function

The correct answer is function.

• Departmentalization
  • Once jobs are divided up through work specialization, those jobs need to be combined together to coordinate common tasks.
  • It is the basis by which jobs are grouped together. Jobs can be grouped in the following ways.
  • Function
    • This is among the most popular way to group activities. Hence, Option 4 is correct.
    • Corporations might have a supply chain function, a finance function, a human resources function.
    • All the worker specializations for those areas are grouped together, and people with common skills work in common units.

Top Organization structure MCQ Objective Questions

Which of the following does not fall under C-SUITE?

1. Chief Financial Officer
2. Chief Executive Officer
3. Chief Operating Officer
4. Sales Manager

Answer (Detailed Solution Below)

Option 4 : Sales Manager

C-SUITE:

• C-Suite, or C-level, is used widely to describe a cluster of an organization's most important senior executives.
• Most commonly C-SUITE executives include Chief Executive Officer (CEO), Chief Financial Officer (CFO), Chief Operating Officer (COO), and Chief Information Officer (CIO).
• These members work together to ensure that a firm stays true to its established plans and policies.
• To acquire such a high position in a firm requires a plethora of experience and finely-honed leadership skills.
• While at first many C-SUITE executives relied on functional know-how and technical skills to climb the lower rungs of the corporate ladder, with time most have cultivated more visionary perspectives needed to make sound upper management decisions.
• There are several other positions that fall under this executive-level like:​
  • Chief Analytics Officer (CAO)
  • Chief Data Officer (CDO)
  • Chief Marketing Officer (CMO)
  • Chief Green Officer (CGO)
  • Chief Human Resources Manager (CHRM)
  • Chief Security Officer (CSO)
  • Chief Compliance Officer (CCO)
• The number of C-SUITE positions differs based on the variables such as the size of a company, mission, and sector.

Therefore, the Sales Manager does not fall under C-SUITE.

Which of the following types of authorities are found in most organizations?

a) Division Authority

b) Line Authority

c) Staff Authority

d) Functional Authority

Choose the correct option from those given below:

1. a) and b) only
2. b) and c) only
3. a), b) and c) only
4. b), c) and d) only

Answer (Detailed Solution Below)

Option 4 : b), c) and d) only

Authority:

1. Authority is the right to perform or command.
2. It allows its holder to act in certain designated ways and to directly influence the actions of others through orders.
3. It also allows its holder to allocate the organization’s resources to achieve organizational objectives.

Barnard defines authority as the character of communication by which an order is accepted by an individual as governing the actions that an individual takes within the system.

TYPES OF AUTHORITY:

3 main types of authority can exist within an organization:

1. Line Authority
2. Staff Authority
3. Functional Authority

Each type exists only to enable individuals to carry out the different types of responsibilities with which they have been charged.

1. Line Authority: 

• The most fundamental authority within an organization reflects existing superior-subordinate relationships.
• It consists of the right to make decisions and to give orders concerning the production, sales, or finance-related behavior of subordinates.
• In general, line authority pertains to matters directly involving management system production, sales, finance, etc., and as a result with the attainment of objectives.

2. Staff Authority: 

• Staff authority consists of the right to advise or assist those who possess line authority as well as other staff personnel.
• Staff authority enables those responsible for improving the effectiveness of line personnel to perform their required tasks.

3. Functional Authority:

• Functional authority is the right that is delegated to an individual or a department to control specified processes, practices, policies, or other matters about activities undertaken by persons in other departments.
• It is delegated by their common superior to a staff specialist or a manager in another department.

The informal group's communication system is called

1. Group Dynamics

2. Grapevine

3. Exchange

4. Interaction

1. 1
2. 2
3. 3
4. 4

Answer (Detailed Solution Below)

Option 2 : 2

The informal communications are based on personal or informal relations such as friends, peers, family, club members, etc. and thus is free from the organizational conventional rules and other formalities.

In the business context, informal communication is called a “grapevine” as it is difficult to define the beginning and end of the communication.

There are four types of Informal Communication (Grapevine) networks that show how communication is facilitated. These are:

1. Single Strand Chain
2. Gossip Chain
3. Probability Chain
4. Cluster Chain

1. Group Dynamics: Group dynamics is a set of behavioral and psychological processes that occur within a social group or between groups. It refers to the "nature of groups, the laws of their development, and their interrelations with individuals, other groups, and larger institutions.

2. Exchange: Communication is conveying messages by exchanging thoughts or information via speech, visuals, signals, writing, or behavior. Business communication is the transmission and exchange of information between people in an organization to facilitate business activities.

3. Interaction: Interaction can be defined as, 'communication or direct involvement with someone or something.'

Which of the following is not correct with respect to matrix organisation? 

1. It is a combination of functional and product organisation
2. Functional departments are not permanent fixtures of a matrix organisation
3. Product departments are created as the need for them arises
4. Team members have functional home when they are not needed on a project

Answer (Detailed Solution Below)

Option 2 : Functional departments are not permanent fixtures of a matrix organisation

An organization structure specifies the various job tasks and shows how the same are formally divided, grouped, and coordinated. It provides an appropriate framework for an authority relationship. It indicates the hierarchy of authority and reporting relationships. It is a means to help the management to achieve the organizational objectives.

Matrix Organization:

1. The matrix organization combines two forms of departmentalization---functional and product/project.
2. It is built around a project which is headed by a Project Manager. The Project Manager is also known as the Product Manager as he is responsible for the output (product) of the project.
3. The project teams comprise of employees (specialists) drawn from different functional departments such as the Human Resources, Finance, Production, Marketing, and Research & Development Departments of the Company.
4. Thus, the employees of the matrix have two bosses: their Functional Departmental Managers (for example, the HR specialists of the project team have to report to the Manager, Human Resources Department) and their Project Manager.
5. In other words, the matrix structure breaks the principle of unity-of-command which states that no person in the organization should report to more than one boss.
6. The matrix organization is different from the functional organization.
7. In the functional organization, the project manager is given complete responsibility for the project as well as the resources needed for its completion. But in the matrix organization, the Project Manager has to share the resources with the rest of the enterprise.
8. The matrix structure is used in advertising agencies, aerospace firms, R & D laboratories, construction companies, hospitals, government agencies, universities, management consulting firms, and entertainment companies.
9. Matrix organization, also called grid organization, is a hybrid structure combining two complementary structures namely, functional departmentation with pure project structure.
10. Functional structure is a permanent feature of the matrix organization and retains authority for the overall operation of the functional units.
11. Project teams are created whenever specific projects require a high degree of technical skills and other resources for a temporary period. Team members have a functional home when they are not needed on a project.

Thus, option 2 is not correct with respect to a matrix organization.

The major functions in business organizations are:

1. Overlapping
2. Independent of each other
3. Mutually exclusive
4. Dependent on each other

Answer (Detailed Solution Below)

Option 1 : Overlapping

The correct answer is Overlapping.

• Management has been described as a social process involving responsibility for economical and effective planning & regulation of operation of an enterprise in the fulfillment of given purposes.
• It is a dynamic process consisting of various elements and activities.
• These activities are different from operative functions like marketing, finance, purchase, etc.
• Rather these activities are common to every manager irrespective of his level or status.
• According to Henry Fayol, To manage is to forecast and plan, to organize, to command, & to control.
• Most widely accepted are functions of management given by KOONTZ and O'DONNELL i.e. Planning, Organizing, Staffing, Directing, and Controlling.
• For theoretical purposes, it may be convenient to separate the function of management but practically these functions are overlapping in nature i.e. they are highly inseparable. Hence, Option 1 is correct.
• Each function blends into the other & each affects the performance of others.

The challenge of creating team players will be greatest where the national culture is __________.

1. collectivist
2. competitive
3. individualistic
4. pluralistic

Answer (Detailed Solution Below)

Option 3 : individualistic

The correct answer is individualistic.

• There is always a strong case for the value and growing popularity of teams.
• But all people are not inherently team players.
• There are also many organizations that have historically nurtured individual accomplishments.
• They have created competitive work environments in which only the strong survive.
• The challenge of creating team players will be greatest where the national culture is highly individualistic and the teams are being introduced into an established organization that has historically valued individual achievement. Hence, Option 3 is correct.

The SWOT approach assesses an organization's:

1. Strengths, Weaknesses, Opportunities, Threats
2. Signs, Worries, Objectives, Techniques
3. Organization, Types
4. Speed, Wants, Order, Timing

Answer (Detailed Solution Below)

Option 1 : Strengths, Weaknesses, Opportunities, Threats

The correct answer is Strengths, Weaknesses, Opportunities, Threats.

• SWOT organizational analysis
  • It is a strategic planning process that enables companies and other organizations to focus on their strengths and weaknesses, as well as the opportunities and threats in their environment.
  • This flexible planning process provides a popular approach to guiding organizations to accomplish their objectives and goals.
  • SWOT analysis provides the foundation for effective strategic management through a flexible, if somewhat vague, framework.
  • A SWOT analysis is a strategic planning method that assesses an organization’s Strengths, Weaknesses, Opportunities, and Threats, which summarizes the abbreviation. Sometimes, the abbreviation appears as TOWS or WOTS up analysis. Regardless, the elements in each abbreviation are the same. Hence, Option 1 is correct.

​

Following are the events of an organizational culture:

a) Customer orientation and employee policies

b) Quality orientation, directing and motivating styles

c) Decision-making products and services and responsibilities to society

d) Reaction to competitors and gratitude towards nation

e) Role ambiguities, trade union and policies

Select the correct sequence for the above events:

1. a, b, d and e
2. a, c, d and e
3. b, c, d and e
4. a, b, c and d

Answer (Detailed Solution Below)

Option 4 : a, b, c and d

ORGANIZATIONAL CULTURE:

Organizational culture is defined as the underlying beliefs, assumptions, values and ways of interacting that contribute to the unique social and psychological environment of an organization.

At the deepest level, an organization's culture is based on values derived from basic assumptions about the following:

• Human nature. Are people inherently good or bad, mutable or immutable, proactive or reactive? These basic assumptions lead to beliefs about how employees, customers, and suppliers should interact and how they should be managed.
• The organization's relationship to its environment. How does the organization define its business and its constituencies?
• Appropriate emotions. Which emotions should people be encouraged to express, and which ones should be suppressed?
• Effectiveness. What metrics show whether the organization and its individual components are doing well? An organization will be effective only when the culture is supported by an appropriate business strategy and a structure that is appropriate for both the business and the desired culture.

The following are the events that come under Organization culture:

1. Customer orientation and employee policies
2. Quality orientation, directing, and motivating styles
3. Decision-making products and services and responsibilities to society
4. Reaction to competitors and gratitude towards nation

A trade union can play a role in creating and changing an organization's culture since they are in a position to provide the workforce with information designed to influence decisions about work practices, rules, preferred behaviors, and attitudes,s, etc. Management, as well as staff developers, need, therefore, to communicate frequently with trade union officers.

Therefore, option 4 is the correct answer.

Organization structure that shows a unique combination of strategy, structure and management process is known as

1. free-form organization
2. virtual organization
3. network organization
4. horizontal organization

Answer (Detailed Solution Below)

Option 3 : network organization

The organizational structure that shows a unique combination of strategy, structure, and management process is known as a network organization.

Explanation:

• The network structure is a newer type of organizational structure viewed as less hierarchical (i.e., more “flat”), more decentralized, and more flexible than other structures.
• In a network structure, managers coordinate and control relationships that are both internal and external to the firm.
• The concept underlying the network structure is the social network—a social structure of interactions. Open communication and reliable partners (both internally and externally) are key components of social networks.
• Proponents argue that the network structure is more agile than other structures. Because it is decentralized, a network organization has fewer tiers, a wider span of control, and a bottom-up flow of decision making and ideas.
• It shows a unique combination of strategy, structure, and management process 
• A disadvantage of the network structure is that this more fluid structure can lead to more complex relations in the organization.

In which type of organisation the rules, duties and responsibilities are given in writing?

1. Formal organisation
2. Informal organisation
3. Strategic organisation
4. Both (B) and (C)

Answer (Detailed Solution Below)

Option 1 : Formal organisation

The Correct Answer is Formal organisation

• It is the type of organisation where rules, duties and responsibilities are clearly defined and given in writing to achieve a specific goal.
• In this type of organisation the hierarchy structure of the organisation is pre determined
• Formal organisation is constructed  by managemment intentionally to achieve specific organisation goal.

One of the most popular ways to group activities is by_________.

1. geography
2. product
3. process
4. function

Answer (Detailed Solution Below)

Option 4 : function

The correct answer is function.

• Departmentalization
  • Once jobs are divided up through work specialization, those jobs need to be combined together to coordinate common tasks.
  • It is the basis by which jobs are grouped together. Jobs can be grouped in the following ways.
  • Function
    • This is among the most popular way to group activities. Hence, Option 4 is correct.
    • Corporations might have a supply chain function, a finance function, a human resources function.
    • All the worker specializations for those areas are grouped together, and people with common skills work in common units.

All of the following are methods of grapevine communication, EXCEPT:

1. cluster chain
2. star chain
3. policy circulars
4. single chain

Answer (Detailed Solution Below)

Option 3 : policy circulars

In Business Communication Grapevine is defined as, 'Grapevine is a form of informal communication, operates both in internal and external informal channels which can contribute to and benefit the organization.'

Professor Keith Davis has classified 4 methods of Grapevine Communication:

1) Cluster chain, 2) Gossip or star chain, 3) Probability chain and 4) Single strand chain.

1) Cluster chain:

• In the cluster chain method, a person shares information with a selected number of people who may pass on that information to other selected numbers of people.
• This method is mostly used and is a dominant pattern of grapevine communication.

2) Gossip or star chain: 

• Here one person seeks and passes on the information to everyone.
• In this chain of communication, one person stays at the center of the system and passes the information to everyone.
• He is the main or the pivotal person in this chain of communication.

3) Single Strand chain:

• This method involves the transfer of information through a single line of persons to the final recipient. 
• For example, person A will tell person B, person B will tell person C, and so on until the message reaches the final recipient.  

Therefore, all of the following are methods of grapevine communication, except policy circulars.

4) Probability chain:

• In this method, one person transmits information to others according to the law of probability and others pass information in the same way.
• This chain of communication may also be called a random process of communication.

Policy circulars:

• Policy circular method of communication refers to that communication passes in two directions.
• First, a person decodes the message he/she received and then encodes it and sends it back to the sender of the message.
• This process of encoding and decoding can be used in a continuous cycle.

Choose the correct code for the following statements being correct or incorrect

Statement I:  An identifiable group of people contributing their efforts towards attainment of goals is called organization

Statement II : In its broadest sense, organization refers to the relationship between the various factors present in a given endeavor.

1. Both the statements I and II are correct.

2. Both the statements I and II are incorrect

3. Statement I is correct, but II is incorrect

4. Statement II is correct, but I is incorrect.

Answer (Detailed Solution Below)

Option 1 :

Both the statements I and II are correct.

Statement I:  An identifiable group of people contributing their efforts towards the attainment of goals is called an organization.

Explanation: 

1. The organization is the pattern of ways in which a large number of people, too many to have intimate face-to-face contact with all others, and engaged in complexity of tasks, relate themselves to each other in the conscious, systematic establishment and accomplishment of mutually agreed purposes.
2. The organization is the process of identifying and grouping the work to be performed, defining and delegating responsibility and authority, and establishing relationships for the purpose of enabling people to work most effectively together in accomplishing objectives.
3. According to McFarland, “Organisation is an identifiable group of people contributing their efforts towards the attainment of goals” 

​Thus, a statement I is correct.

Statement II: In its broadest sense, the organization refers to the relationship between the various factors present in a given endeavor.

Explanation: 

1. According to Oliver Sheldon, “Organisation is the process of combining the work which individuals and the group have to perform with the facilities necessary for its execution that the duties so formed provide the best channels for efficient, systematic, positive and coordinated application of available effort.” 
2. According to North Whitehead, "Organisation is the adjustment of diverse elements, so that their mutual relationship may exhibit more pre-determined quality."

Thus, statement II is also correct.

Option I is the correct answer.
Organisation is the pattern of ways in which large number of people, too many to have intimate face-to-face contact with all others, and engaged in a complexity of tasks, relate themselves to each otherin the conscious, systematic establishment and accomplishment of mutually agreed purposes.in the conscious, systematic establishment and accomplishment of mutually agreed purposes.

Assertion A): Brainstorming technique demands generation of a number of alternatives to a problem.

Reason R): Participants generate as many alternatives as possible without evaluating them in brainstorming sessions.

In the context of the above two statements, which one of the following codes is correct?

1. Statement A) is correct and R) are is the correct explanation of A)
2. Both A) and R) are correct but R) is not the right explanation of A)
3. Statement A) is correct but R) is incorrect
4. Both A) and R) are correct

Answer (Detailed Solution Below)

Option 1 : Statement A) is correct and R) are is the correct explanation of A)

Assertion A): The brainstorming technique demands the generation of a number of alternatives to a problem.

Explanation:​

1. Developed by Alex F. Osborn, brainstorming is the oldest and best-known technique for stimulating creative thinking.
2. It involves the use of a group whose members are presented with a problem and are asked to develop as many potential solutions as possible.
3. Members of the group may all be employees of the same firm or outside experts in a particular field.
4. Brainstorming is based on the premise that when people interact in a free and uninhibited atmosphere they will, generates creative ideas.
5. That is, as one person generates an idea it serves to stimulate' the thinking of others.
6. This interchange of ideas is supposedly contagious and creates an atmosphere of free discussion and spontaneous thinking.
7. The objective is to produce as many ideas as possible in keeping with the belief that the larger the number of ideas produced, the greater the probability of identifying an acceptable solution.

Therefore, Statement A is correct.

Reason R): Participants generate as many alternatives as possible without evaluating them in brainstorming sessions.

Explanation:

Brainstorming is governed by four important rules:

1. Criticism is prohibited. The judgment of ideas must be withheld until all ideas have been generated. It is believed that criticism inhibits the free flow of ideas and group creativity.
2. Freewheeling' is welcome. The wilder the idea the better. It is easier to `tame down' than to `think up' ideas.
3. Quantity is wanted. The greater the number of ideas, the greater the likelihood of an outstanding solution.
4. Combination and improvement are sought. In addition to contributing ideas of their own, group members suggest how ideas of others can be improved, or how two or more ideas can be combined into still another idea. 

Thus, Statement R)  is the correct explanation of A.

The social environment of the job affects people and is also affected by them and not by management alone, is the main proposition of

1. contingency theory of organization
2. system theory of organization
3. classical theory of organization
4. Neo-classical theory of organization

Answer (Detailed Solution Below)

Option 4 : Neo-classical theory of organization

The social environment of the job affects people and is also affected by them and not by management alone, is the main proposition of Neo-classical theory of organization.

Explanation:

1. The NeoClassical Theory is the extended version of the classical theory wherein the behavioral sciences gets included into the management.
2. According to this theory, the organization is the social system, and its performance does get affected by the human actions.
3. The classical theory laid emphasis on the physiological and mechanical variables and considered these as the prime factors in determining the efficiency of the organization.
4. But, when the efficiency of the organization was actually checked, it was found out that, despite the positive aspect of these variables the positive response in work behavior was not evoked.
5. Thus, the researchers tried to identify the reasons for human behavior at work.
6. This led to the formation of a NeoClassical theory which primarily focused on the human beings in the organization.
7. This approach is often referred to as “behavioral theory of organization” or “human relations” approach in organizations.
8. The NeoClassical theory asserts that an individual is diversely motivated and wants to fulfill certain needs.
9. The communication is an important yardstick to measure the efficiency of the information being transmitted from and to different levels of the organization.
10. The teamwork is the prerequisite for the sound functioning of the organization, and this can be achieved only through a behavioral approach, i.e. how individual interact and respond to each other.

Which of the following are elements of a traditional organization chart?

What information does an organizational chart provide?

What are the 4 types of organizational chart?

Which of the following is a traditional organizational design?