This set of Industrial Management Multiple Choice Questions & Answers (MCQs) focuses on “Types of Organisation”.
1. Which of the following is incorrect about the organisation chart?
a) It is also known as organisation tree
b) It pictorically shows the relation among various departments and positions in an organisation
c) It makes it easy to identify the respective positions that are responsible for a particular function
d) Organisation tree reduces the wastes of production
View Answer
Explanation: Organisation chart which is also known as organisation tree is a map or drawing of an organisation. It shows the relationship among the various departments and positions in an organisation.
It can easily show the functions of a particular position and its responsibilities.
2. Which of the following theory considers the organisation as an open system?
a) Classical theory
b) Neo-classical theory
c) Modern classical theory
d) Trait theory
View Answer
Explanation: Modern classical theory of organisation is developed in the sixties and came into existence in the early seventies. It considers the organisation as an open system.
3. Which of the following is/are not a theory of organisation?
a) Classical theory
b) Neo-classical theory
c) Modern classical theory
d) Trait theory
View Answer
Explanation: Organisation theories are broadly classified into three groups. They are:
i. Classical theory
ii. Neo-classical theory
iii. Modern classical theory
Trait theory is leadership theory.
4. Which of the following organisation theory views an organisation as a machine?
a) Classical theory
b) Neo-classical theory
c) Modern classical theory
d) Trait theory
View Answer
Explanation: Classical organisation theory views the organisation as a machine. It also views persons as different components of the machine. The classical theory of organisation finds its roots from the writings of Frederick Winslow Taylor.
5. Which of the following organisation theory considers an organisation as a social system?
a) Classical theory
b) Neo-classical theory
c) Modern classical theory
d) Trait theory
View Answer
Explanation: Neo-classical theory of organisation which is an improvement of the classical theory of organisation considers an organisation as a social system. It considers both the formal and informal aspects of an organisation.
6. Match the following.
p) Hawthorne experiments i) Classical theory q) Closed system ii) Modern classical theory r) Open system iii) Neo-classical theory
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: Classical theory of organisation assumes an organisation as closed system whereas Modern classical theory views it as an open system. Neo-classicists inspired by the Hawthorne experiments conducted by Mayo which lead to the development of the neo-classical theory of organisation.
7. Which theory ignores the human aspects of an organisation?
a) Classical theory
b) Neo-classical theory
c) Modern classical theory
d) Trait theory
View Answer
Explanation: Classical theory of organisation views the organisation as a machine. It also views persons as different components of the machine. It ignores the human aspects of an organisation. It ignores the informal form (part) of an organisation.
8. Which of the following theory assumes an organisation as a closed system?
a) Classical theory
b) Neo-classical theory
c) Modern classical theory
d) Trait theory
View Answer
Explanation: Classical theory of organisation views the organisation as a machine. It also views persons as different components of the machine. It ignores the human aspects of an organisation. It assumes the organisation as a closed system i.e., as a house that, once established runs smoothly.
9. What is the source of inspiration for the modern classical theory of organisation?
a) System analysis
b) Hawthorne experiments
c) Writings of Taylor
d) Writings of Gilbreth
View Answer
Explanation: System analysis is the source of inspiration for the modern classical theory of organisation. It is developed in the sixties and came into existence in the early seventies.
10. Identify the incorrect statement.
a) A sound organisation leads to specialization
b) A sound organisation minimizes inefficiencies and corruption
c) A sound organisation creates confusion
d) A sound organisation facilitates the training and development of personnel
View Answer
Explanation: A sound organisation results in the success of the enterprise. It leads to specialization. It minimizes inefficiencies and corruption. It eliminates confusion. It helps the enterprise in providing excellent training and development to its personnel.
Sanfoundry Global Education & Learning Series – Industrial Management.
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