This set of Industrial Management Multiple Choice Questions & Answers (MCQs) focuses on “Types of Organisation – Set 2”.
1. Which theory views the organisation and its structure as dynamic?
a) Classical theory
b) Neo-classical theory
c) Modern classical theory
d) Trait theory
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Explanation: Modern classical theory of organisation views the organisation and its structure as dynamic, unlike the classical theory that views an organisation as static. It can be subjected to the changes as per the evolving needs and situations.
2. Which of the following theory employs authoritarian practices?
a) Classical theory
b) Neo-classical theory
c) Modern classical theory
d) Trait theory
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Explanation: Classical theory of organisation employs authoritarian practices. Neo-classical theory of organisation follows a democratic practice. Neo-classical theory of organisation involves employees in decision making like the modern classical theory of organisation.
3. Which of the following theory defines organizational behaviour as a product of rules and regulations?
a) Classical theory
b) Neo-classical theory
c) Modern classical theory
d) None of the mentioned
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Explanation: Classical theory of organisation defines organizational behaviour as a product of rules and regulations. On the other hand, neo-classical theory defines organizational behaviour as a product of feelings, sentiments and attitudes.
4. Which of the following is not a structure of the organisation?
a) Line organisation
b) Functional organisation
c) Line and staff organisation
d) Business organisation
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Explanation: Organisation structures or types of organisation are classified as follows:
i. Line organisation
ii. Functional organisation
iii. Line and staff organisation
iv. Project organisation
v. Matrix organisation
vi. Committee organisation
Note: Business organisation is not an organisation structure.
5. Which of the following is not the other name for the line organisation?
a) Military organisation
b) Scalar organisation
c) Departmental organisation
d) Project organisation
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Explanation: Line organisation which is a formal type of organisation is also known by military or scalar or departmental organisation. In line organisation, authority flows from top to bottom.
6. Match the following.
p) Line organization i) Specialist required q) Functional organisation ii) No need for specialist r) Line and staff organisation iii) Staff and line officers
a) p – ii, q – i, r – iii
b) p – ii, q – iii, r – i
c) p – iii, q – i, r – ii
d) p – i, q – ii, r – iii
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Explanation: Staff organisation does not have staff specialists. The functional organisation has specialists taking care of each function of organisation and sub-ordinates related to that function. Line and staff organisation has both line and staff officers. Staff officers are specialists and line officers are the physically working personnel for attaining the goals of an organisation.
7. Which organisation structure is a combination of both line and functional organisation?
a) Line organisation
b) Functional organisation
c) Line and staff organisation
d) Business organisation
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Explanation: Line and staff organisation is a combination of both line and functional organisation structures. It divides the personnel as staff and line officials who are responsible staff and line functions respectively.
8. Which of the following type of organisation structure is suitable for medium and large scale industries?
a) Line organisation
b) Functional organisation
c) Project organisation
d) Staff organization
View Answer
Explanation: Functional organisation can be suitable for medium to large scale industries. Division of authority is based on the functions and authority is held with the specialist of the respective function.
9. Which of the following type of organisation structure is suitable for small scale enterprise?
a) Line organisation
b) Functional organisation
c) Line and staff organisation
d) Project organization
View Answer
Explanation: Line organisation which is a formal type of organisation is also known by military or scalar or departmental organisation. In line organisation, authority flows from top to bottom and line of responsibility from bottom to top. It is suitable for small scale enterprise.
10. Match the following.
p) Project organisation i) Combination of the project and the functional organisation q) Matrix organisation ii) Can be formed from social activities r) Informal organisation iii) Project
a) p – ii, q – i, r – iii
b) p – ii, q – iii, r – i
c) p – iii, q – i, r – ii
d) p – i, q – ii, r – iii
View Answer
Explanation: Project organisation which is different from the existing organisation structure is formed to complete a big project. It neither affects the functions of the existing organisation nor makes any changes to it. On the other hand, a matrix organisation is a combination of pure project and functional organisation to handle multiple projects at a time. Informal organisations are a small group of employees formed by them within the organisation based on common interest among them. Social activities involved in the organisation can be a cause for the formation of informal organisations.
Sanfoundry Global Education & Learning Series – Industrial Management.
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