Management Quiz - 17

1. Link well Ltd. is a one-year-old electrical equipment company, which has adopted functional structure in its operations, but was facing lot of problems in coordination with its various other branches. The management decided to change to divisional structure from the existing functional structure. Identify from the following, which is not an advantage of Divisional Structure?
[A]Each unit or division can respond or react quickly, when required, because they normally do not need to coordinate with other divisions before taking an action
[B]Coordination is simplified as each division is similar to an organization, containing the various functions within it
[C]Individuals are able to develop in-depth areas of specialization to the same extent as in a functional structure
[D]It helps the organization to focus on serving a particular customer



2. United is a medium-sized manufacturer of readymade garments having presence in AP, Tamilnadu, and Karnataka. Which of the following forms of organization structures best suits the company?
[A]Functional structure
[B]Product structure
[C]Territorial structure
[D]Hybrid structure



3. Lifestyle Ltd. is a construction company with its projects distributed all over the country and abroad. The company adopted functional structure in its operations and then changed its structure to divisional structure. All these changes in the organization structure could not help the company from its low level performance. Now, the company is thinking of adopting the matrix structure. Identify the primary strength of the matrix structure.
[A]Economies of scale and the ability to coordinate interdependent projects
[B]Propensity to foster power struggles
[C]Employee satisfaction
[D]Duplication of activities and resources



4. Which of the following statements is false regarding departmentation by process or equipment?
[A]It enables an organization to get the benefits of generalization
[B]The basic purpose is to get economic benefits
[C]It hinders the coordination of various functions
[D]Responsibility for profits is at the top



5. BLL Ltd. is a two-year-old company with many product lines and is operating with many SBU’s to make sure that all its products receive the same attention as if the product was developed, produced and marketed by an independent company. Identify the statement, which is not correct regarding Strategic Business Unit (SBU)?
[A]It does not have a separate mission and its mission is same as that of the organization as a whole
[B]It has well defined competitor groups
[C]It efficiently manages its resources in prime areas
[D]It should have a proper size, that is, it should be neither too small nor too large



6. Which of the following factors determine(s) an effective span of control?
I. Clarity and Delegation of Authority.
II. Use of Objective Standards.
III. Rate of Change.
[A]Only (I) above
[B]Only (II) above
[C]Only (III) above
[D]All of the above



7. Bethany is the only direct supervisor for all fourteen employees within her department. The practices of her company stipulate that employees only have to report to one immediate supervisor. This concept is referred to as ____.
[A]Unity of command
[B]Span of control
[C]Departmentalization
[D]Decentralization



8. A strategy refers to the determination of the purpose and the basic long-term objectives of an enterprise, and the adoption of courses of action and allocation of resources necessary to achieve these aims. In this context, if AT & T decided to buy “Media One”, a cable company, it was pursuing a
[A]Functional – Level strategy
[B]Internal growth strategy
[C]Diversification strategy
[D]Corporate – Level strategy



9. In this age of increasing employee turnover, companies need to invent methods of quickly filling up the positions rendered vacant. Companies will be greatly benefited if they define the duties and responsibilities of various positions in the organization. The term that describes the determination of an individual’s work related responsibilities is
[A]Job organization
[B]Job specialization
[C]Job rotation
[D]Job design



10. A purchasing department may be created because the hospital administrator cannot effectively handle all purchasing. The purchasing department would evaluate the vendors and suggest the appropriate ones for purchasing the materials. What type of position authority has been created?
[A]Accountability
[B]Line authority
[C]Staff authority
[D]Responsibility



11. Akram has the ability to ‘dock’ paychecks of employees who arrive at work past 9:05 a.m. What kind of power does Akram possess?
[A]Coercive power
[B]Legitimate power
[C]Expert power
[D]Referent power



12. Luminous Ltd., a company, dealing in packaged food, was facing lot of problems in its operations leading to under-performance of its employees. After analysis, it was found that the employees were not clear about their roles in the company and the organizational chart was not clear. In this scenario, which of the following is false with respect to organization chart?
[A]It is a vital tool for providing information about organizational relationships
[B]It provides a visual map of the chain of command
[C]Charting an organization structure can show up the complexities and inconsistencies, which can be corrected
[D]Its shows authority relationships as well as informal and informational relationships



13. A person, who had applied for the post of a service representative, is asked to handle a simulated situation involving a complaining customer, by the company. Which of the following selection devices is being made use of?
[A]Application Blank
[B]Intelligence Test
[C]Personality Test
[D]Work Sampling Test



14. Which of the following is a computerized database containing basic information about each employee that can be used to assess the likely availability of individuals for meeting current and future human resource needs?
[A]Manpower Inventory
[B]Replacement Planning
[C]Succession Planning
[D]Skills Inventory



15. The process of determining the tasks that make up a job and the skills, abilities and responsibilities an employee needs to accomplish that job is known as
[A]Job description
[B]Job analysis
[C]Skills inventory
[D]Job specification