A
A company clearly defines every employee's authority, responsibility and reporting relationship. Which feature of formal organisation is MOST directly demonstrated?
A. Stability
B. Reporting relationship
C. Coordination
D. Flexibility
B. Reporting relationship
A formal organisation is created primarily because management wants to:
A. Encourage employees to form social groups
B. Allow employees to determine their own authority
C. Eliminate all interpersonal relationships
D. Achieve organisational objectives through a defined structure
D. Achieve organisational objectives through a defined structure
Which structure is the simplest and oldest form of organisational structure?
A. Matrix structure
B. Functional structure
C. Line structure
D. Divisional structure
Answer: C. Line structure
Organisational culture refers mainly to:
A. Shared values, beliefs, practices and attitudes
The physical design of an office
B.The physical design of an office
C. The number of employees in a company
D. The company's organisational chart
Answer: A. Shared values, beliefs, practices and attitudes
Which of the following is a pillar of corporate governance?
A. Advertising
B. Accountability
C. Recruitment
D. Production
Answer: B. Accountability
6. A formal organisation has clearly defined rules, but employees find that following every official communication channel slows decisions. Which disadvantage is being shown?
A. Lack of initiative
B. Lack of specialisation
C. Ignoring human elements
D. Delay in action
Answer: D. Delay in action
A company groups employees into Finance, Marketing and HR because each group requires different expertise. What is the PRIMARY reason for using this structure?
A. To create separate geographical divisions
B. To promote specialisation
C. To eliminate departmental differences
D. To create dual authority
Answer: B. To promote specialisation
Ravi hears from a colleague that the company may announce promotions next month. The information has not been officially announced. Which is the BEST description?
A. Gangplank
B. Formal communication
C. Grapevine
D. Chain of command
Answer: C. Grapevine
Which statement about an informal organisation is MOST accurate?
A. It develops naturally through employee interactions
B. It always follows a defined chain of command
C.It is deliberately designed by top management.
D. It requires formally documented rules
Answer: A. It develops naturally through employee interactions
A company encourages employees to support each other, participate in decisions and develop strong relationships. Which culture is MOST likely?
A. Market culture
B. Clan culture
C. Hierarchical culture
D. Adhocracy culture
Answer: B. Clan culture
11. A company creates separate units for its Electronics, Automobile and Financial Services businesses. Each unit is responsible for its own performance. What is the MOST likely structure?
A. Functional, because employees specialise in different functions
B.Matrix, because employees must coordinate across departments
C. Divisional, because the organisation is separated around different businesses
D. Flat, because each unit has decision-making authority
Answer: C. Divisional, because the organisation is separated around different businesses
Consider the following:
Employees communicate quickly with one another, but some information is inaccurate and rumours occasionally spread.
Which organisational feature BEST explains this situation?
A. Formal organisation
B. Informal organisation
C. Gangplank
D. Line structure
Answer: B. Informal organisation
A manager allows an employee to contact a manager in another department directly to resolve an urgent issue, rather than requiring the message to pass through every level of hierarchy. Provided this is officially permitted, this is:
A. Grapevine
B. Informal organisation
C. Gangplank
D. Downward communication
Answer: C. Gangplank
A company rewards employees for experimentation, accepts reasonable risk and encourages them to challenge existing methods. Which culture is MOST consistent with this behaviour?
A. Market culture
B. Clan culture
C.Hierarchical culture
D. Adhocracy culture
Answer: D. Adhocracy culture
A board ensures that managers identify, measure and reduce possible financial, operational and reputational threats. Which governance pillar is MOST directly involved?
A. Risk management
B. Fairness
C.Responsibility
D. Accountability
Answer: A. Risk management
A large company groups employees according to Finance, Marketing, HR and Production. Each department has highly specialised employees. However, departments increasingly focus only on their own objectives.
Which combination BEST explains the problem?
A. Functional structure → departmental silos
B. Divisional structure → duplicated resources
C. Matrix structure → dual authority
D. Flat structure → excessive span of control
Answer: A. Functional structure → departmental silos
A company removes several middle-management levels. Employees can communicate directly with senior managers and are given greater autonomy. However, managers now supervise many more employees.
Which structure is MOST clearly being described?
A. Functional structure
B. Flat structure
C. Divisional structure
D. Line structure
Answer: B. Flat structure
Which structure has few or no middle-management levels?
A. Matrix structure
B. Flat structure
C. Functional structure
D. Divisional structure
Answer: B. Flat structure
A company gives employees rewards based mainly on individual performance. What behaviour is this most likely to encourage?
A. Greater competition between employees
B. Greater teamwork automatically
C. Less focus on performance
D. Complete employee independence
Answer: A. Greater competition between employees
A company officially claims that "employee empowerment is important," but employees have learned that making independent decisions is actually discouraged and management approval is expected.
According to Schein's Onion Model, what is the MOST important distinction?
A. Artifacts and rituals
B. Espoused values and basic assumptions
C. Symbols and heroes
D. Rituals and values
Answer: B. Espoused values and basic assumptions
An employee works simultaneously on a product-development project and within the Finance function. The employee receives instructions from both managers. Neither manager has clearly established which task takes priority.
Which statement BEST identifies the problem?
A. Functional specialisation has been eliminated
B. Divisional duplication has occurred
C. Dual authority has created confusion over priorities
D. Flat structure has increased the employee's span of control
Answer: C. Dual authority has created confusion over priorities
A company introduces solar energy, reduces waste, designs products for longer use, and requires suppliers to provide fair wages and safe working conditions.
Which statement BEST captures the underlying principle?
A. Sustainability focuses only on reducing environmental damage
B. Sustainability is primarily concerned with corporate governance
C. Sustainability balances economic, environmental and social considerations
D. Sustainability requires businesses to sacrifice economic performance
Answer: C. Sustainability balances economic, environmental and social considerations
A company focuses strongly on targets, competition, productivity and measurable results. Which culture does this describe?
A. Clan culture
B. Adhocracy culture
C.Hierarchical culture
D. Market culture
Answer: D. Market culture
A company has a matrix structure. The Project Manager wants an employee to complete a project task immediately, while the Functional Manager wants the same employee to focus on departmental work.
What is the MAIN issue?
A. Conflict caused by dual authority
B. Duplication of divisions
C. A. Lack of specialisation
D. Lack of informal communication
Answer: A. Conflict caused by dual authority
Which situation BEST demonstrates the difference between grapevine and gangplank?
A. Grapevine is official, while gangplank is unofficial
B. Grapevine may spread unofficial information, while gangplank is an authorised shortcut
C. Both are official methods of communication
D. Both are informal methods created by employees
Answer: B. Grapevine may spread unofficial information, while gangplank is an authorised shortcut