This set of Industrial Management Multiple Choice Questions & Answers (MCQs) focuses on “Principles of Organisation”.
1. Which of the following is nota method suggested by Peter Drucker for finding organisation structure required for an organisation?
a) Activity analysis
b) Decision analysis
c) Relational analysis
d) Job analysis
View Answer
Explanation: Peter Drucker suggested the following methods for finding the type of organisation structure to achieve the objectives of an organisation. They are:
i. Activity analysis
ii. Decision analysis
iii. Relational analysis
2. Which of the following doesn’t have involvement of a group of individuals?
a) Sole proprietorship
b) Partnership
c) Pvt. Ltd. joint-stock company
d) Public Ltd. Joint-stock company
View Answer
Explanation: Sole proprietorship also known as single ownership is one of the types of industrial ownerships. In this type of ownership, only a single person will invest the capital needed for the establishment of an organisation.
3. Which of the following is not a factor to be considered for selecting the organisation type?
a) Capital investment
b) Sharing of profits
c) Product design
d) Scale of business
View Answer
Explanation: The factors to be considered for selecting an organisation type are nature of the business, the scale of business, capital investment, Govt. policies, degree of risk involved, sharing of profits, technical factors, tax advantages, the life span of business expected and internal organisation.
4. What is another name of single ownership?
a) Sole proprietorship
b) Joint-stock company
c) Co-operative society
d) Partnership
View Answer
Explanation: Sole proprietorship also known as single ownership is one of the types of industrial ownerships. In this type of ownership, only a single person will invest the capital needed for the establishment of an organisation.
5. Which of the following is false about an organisation structure?
a) The organisation structure is the network of relationships among individuals and positions in an organisation
b) The organisation structure is the skeleton framework of an enterprise
c) The organisation structure is shown on the organisation chart
d) The organisation structure is established to achieve the personal goals of employees
View Answer
Explanation: Organisation structure is not established to achieve the personal goals of employees. Instead, it is for achieving the goals and objectives of an organisation. The organisation structure is shown on the organisation chart. The organisation structure is the network of relationships of personnel in an organisation.
6. How many types of communications are there in an organisation?
a) Two
b) Five
c) Four
d) Six
View Answer
Explanation: There are broadly four types of communications in an organisation:
i. Downward communication
ii. Upward communication
iii. Horizontal communication
iv. Unofficial communication or rumours
7. Which of the following is an example of line function in an organisation?
a) Accounting
b) Administration
c) Personnel
d) Production
View Answer
Explanation: Activities in an organisation can be classified into two types:
i. Primary activities or line functions
ii. Supporting activities or staff functions
Examples of line functions in an organisation are production, sales, purchasing etc.
8. How many types of dimensions are there for a typical organisation structure?
a) Two
b) Five
c) Four
d) Six
View Answer
Explanation: There are two types of dimensions in an organisation. They are:
i. Horizontal dimension – refers to departmentation
ii. Vertical dimension – the creation of hierarchy in an organisation
9. Which of the following is not apart of principles of organisation?
a) Objectives of an organisation
b) Responsibility and authority
c) Span of control
d) Corporate social responsibility
View Answer
Explanation: There are several principles defined for an organisation to assist it in achieving its goals and objectives. They are as follows:
i. Define objectives
ii. Relationship of basic components of the organisation
iii. Responsibility and authority
iv. Span of control
v. Dividing and grouping work
vi. Effective delegation
vii. Communication
viii. Line and staff relationships
ix. Balance
x. Stability
xi. Flexibility
10. Match the following.
p) Responsibility i) The right to command and/or power to act q) Authority ii) Accountability r) Infantry and Artillery in Army iii) Supporting activities s) EME in Army iv) Primary activities
a) p-ii, q-i, r-iv, s-iii
b) p-i, q-ii, r-iv, s-iii
c) p-ii, q-i, r-iii, s-iv
d) p-ii, q-iii, r-iv, s-i
View Answer
Explanation: Responsibility means accountability and authority means the right to command and/or power to act. Infantry and Artillery in the Army perform primary activities and EME in Army performs supporting activities.
Sanfoundry Global Education & Learning Series – Industrial Management.
To practice all areas of Industrial Management, here is complete set of 1000+ Multiple Choice Questions and Answers.
If you find a mistake in question / option / answer, kindly take a screenshot and email to [email protected]
