CUET UG Categorised PYQ Business Studies Unit 5
Business studies
📌 Answers are locked once submitted — results and explanations appear at the end.
QUESTION 1 OF 28
In a manufacturing concern, division of work into key functions will include production, purchase, marketing accounts and personnel. These departments may be further divided into sections. Which type of structure is highlighted here? (PYQ 2022)
QUESTION 2 OF 28
It is defined as the framework within which managerial and operational tasks are performed. Identify it. (PYQ 2022)
QUESTION 3 OF 28
From the below description, arrange the organising process in a sequential order. (PYQ 2022, 2023)
Statements:
(A) Assignment of duties
(B) Establishing reporting relationships
(C) Identification and division of work
(D) Departmentalisation
Choose the correct answer from the options given below:
QUESTION 4 OF 28
QUESTION 5 OF 28
From the following, identify the combination of steps which are NOT a part of organising process. (PYQ 2023)
Statements:
(A) Identification and division of work
(B) Departmentalisation
(C) Estimating the manpower requirement
(D) Placement and Orientation
(E) Establishing Reporting Relationships
Choose the correct answer from the options given below:
QUESTION 6 OF 28
Identify the elements of delegation. (PYQ 2023)
Statements:
(A) Authority
(B) Centralisation
(C) Decentralisation
(D) Accountability
(E) Responsiblity
Choose the correct answer from the options given below:
QUESTION 7 OF 28
Identify which of the following concept arises from formal position. (PYQ 2023)
QUESTION 8 OF 28
Which of the following statement is correct? (PYQ 2023)
QUESTION 9 OF 28
Accountability arises from: (PYQ 2023)
QUESTION 10 OF 28
Match List-I with List-II. (PYQ 2023)
| List-I | List-II |
|---|---|
| A. Similar nature activities are grouped together | I. Establishing reporting relationships |
| B. Define the work of different job positions | II. Identification and division of work |
| C. Burden of work can be shared | III. Departmentalisation |
| D. Hierarchical structure for coordination amongst departments | IV. Assignment of duties |
QUESTION 11 OF 28
Identify the correct sequence of activities undertaken by a manager when he/she is involved in the process of defining and grouping activities to create a framework of tasks to be performed. (PYQ 2023)
Statements:
(A) Identification of work
(B) Establishing reporting relationships
(C) Departmentalisation
(D) Division of work
(E) Assignment of duties
Choose the correct answer from the options given below:
QUESTION 12 OF 28
Name the function of management that removes ambiguity and ensure clarity in working relationships. (PYQ 2023)
QUESTION 13 OF 28
Select the organisation that gives rise to a network of social relationships among employees. (PYQ 2023)
QUESTION 14 OF 28
What is the correct sequence of steps in the process of organising? (PYQ 2024)
Statements:
(A) Identification and division of work
(B) Assignment of duties
(C) Establishing reporting relationships
(D) Departmentalisation
Choose the correct answer from the options given below:
QUESTION 15 OF 28
The informal organisation offers the benefit of: (PYQ 2024)
QUESTION 16 OF 28
Interaction among people at work gives rise to a network of social relationships among employees called (PYQ 2024)
QUESTION 17 OF 28
Grouping of the activities on the basis of Products is related to: (PYQ 2024)
QUESTION 18 OF 28
Which of the following are advantages of functional structure of an organisation? (PYQ 2024)
Statements:
(A) Leads to occupational specialisation.
(B) Places less emphasis on organisational objectives.
(C) Promotes coordination and control within a department.
(D) Increases operational efficiency.
Choose the correct answer from the options given below:
QUESTION 19 OF 28
Match List-I with List-II on the basis of meaning and the term. (PYQ 2024)
| List-I (Meaning) | List-II (Term) |
|---|---|
| A. Right to command | I. Answerability |
| B. Obligation to perform task | II. Delegation |
| C. Accountability | III. Authority |
| D. Basis of management hierarchy | IV. Responsibility |
QUESTION 20 OF 28
Identify the correct sequence of Organising function of management. (PYQ 2024)
Statements:
(A) Establishing authority and reporting relationships
(B) Departmentalisation
(C) Identification and division of work
(D) Assignment of duties
Choose the correct answer from the options given below:
QUESTION 21 OF 28
The formal organisation can be better understood by a study of its features which are as follows: Which of the following options are correct? (PYQ 2024)
Statements:
(A) It specifies the relationships among various job positions and the nature of their inter-relationship. This clarifies who has to report to whom.
(B) It is a means to achieve the objectives specified in the plans, as it lays down rules and procedures essential for their.
(C) Independent channels of communication without specified direction of flow of information are developed by group members.
(D) It is deliberately designed by the top management to facilitate the smooth functioning of the organisation.
Choose the correct answer from the options given below:
QUESTION 22 OF 28
A company hired consultants to restructure departments for better efficiency. Identify the management function. (PYQ 2025)
QUESTION 23 OF 28
Which of the following best reflects that management aims at achieving results through others? (PYQ 2025)
QUESTION 24 OF 28
Which of these is a feature of informal organisation? (PYQ 2025)
QUESTION 25 OF 28
Identify the element of delegation where the subordinate is answerable for the outcome. (PYQ 2025)
QUESTION 26 OF 28
Arrange the steps of organizing. (PYQ 2025)
Statements::
(A) Division of work
(B) Departmentalisation
(C) Assignment of duties
(D) Authority relationships
Choose the correct answer from the options given below:
QUESTION 27 OF 28
Which of the following is the correct order of steps a manager must undertake while structuring tasks and creating a formal authority system within an enterprise? (PYQ 2025)
Statements:
(A) Clarify who reports to whom and who commands whom
(B) Divide the work into specific roles
(C) Allocate duties based on competency
(D) Group similar activities into functional units
Choose the correct answer from the options given below:
QUESTION 28 OF 28
Arrange the following steps of organising process in a logical sequence. (PYQ 2025)
Statements:
(A) Establishing authority and reporting relationship
(B) Identification of work
(C) Departmentalisation
(D) Division of work
(E) Assignment of duties
Choose the correct answer from the options given below:
Test Complete!
Answer Review
1 In a manufacturing concern, division of work into key functions will include production, purchase, marketing accounts and personnel. These departments may be further divided into sections. Which type of structure is highlighted here? (PYQ 2022)
Work is divided according to major functions of the organisation. Production, purchase, marketing, accounts and personnel are functional departments. Functional structure groups similar and related activities together.
(Detailed) → Functional structure is an organisational structure in which activities are grouped on the basis of major functions performed in an organisation. → In a manufacturing concern, important functions may include production, purchase, marketing, accounts, finance and personnel. → Each function may be further divided into sections for better specialisation and coordination. → In the given question, the division of work is clearly based on functions rather than products or regions. → Hence, Functional structure is the correct answer.
- A) Divisional structure → It groups activities on the basis of products, regions or divisions, not on the basis of functions.
- C) Rational structure → This is not a standard organisational structure discussed in NCERT management.
- D) Organisational structure → This is a general term for the framework of an organisation, not the specific type highlighted in the question.
Used
- Option A → Check whether the question mentions product-wise or division-wise grouping. It does not.
- Option B → Key functions like production, purchase, marketing and accounts directly indicate functional structure.
- Option C → Reject because it is not a standard NCERT organisational structure.
- Option D → Reject because it is only a broad term, not the specific structure.
- Final Answer → Function-wise grouping of departments means Functional structure.
2 It is defined as the framework within which managerial and operational tasks are performed. Identify it. (PYQ 2022)
It provides a formal framework for work. Managerial and operational tasks are performed within this framework. It defines job positions, authority, responsibility and reporting relationships.
(Detailed) → Organisational structure is the framework within which managerial and operational tasks are performed. → It shows how jobs are divided, grouped and coordinated in an organisation. → It also defines authority-responsibility relationships and reporting lines. → The keyword "framework" directly indicates organisational structure in NCERT. → Hence, Organisational structure is the correct answer.
- A) Span of management → It refers to the number of subordinates that a superior can manage effectively.
- C) Informal organisation → It refers to social relationships that arise naturally among employees.
- D) Delegation → It means transferring authority from a superior to a subordinate for completing assigned work.
Used
- Option A → Identify it as number of subordinates under a superior.
- Option B → The word "framework" directly matches organisational structure.
- Option C → Social relationship network is not the formal framework of tasks.
- Option D → Transfer of authority is delegation, not the framework of tasks.
- Final Answer → Framework for managerial and operational tasks = Organisational structure.
3 From the below description, arrange the organising process in a sequential order. (PYQ 2022, 2023)
Statements:
(A) Assignment of duties
(B) Establishing reporting relationships
(C) Identification and division of work
(D) Departmentalisation
Choose the correct answer from the options given below:
Organising begins with identification and division of work. Similar activities are grouped through departmentalisation. Duties are assigned and reporting relationships are established at the end.
(Detailed) → Organising is the process of creating a proper structure in an organisation. → Statement (C) comes first because the total work must first be identified and divided into manageable activities. → Statement (D) comes next because similar activities are grouped into departments through departmentalisation. → Statement (A) follows because duties are assigned to individuals according to their ability and position. → Statement (B) comes last because reporting relationships are established after duties are assigned. → Therefore, the correct sequence is (C), (D), (A), (B). → Hence, (C), (D), (A), (B) is the correct answer.
- A) (D), (C), (B), (A) → Departmentalisation cannot take place before identification and division of work.
- C) (A), (C), (B), (D) → Assignment of duties cannot be the first step because work must be identified and grouped first.
- D) (B), (D), (C), (A) → Reporting relationships are established at the end, not at the beginning.
Used
- Statement (C) → First step because work must be identified and divided.
- Statement (D) → Second step because similar activities are grouped.
- Statement (A) → Third step because duties are assigned after departments are formed.
- Statement (B) → Final step because reporting relationships are established last.
- Final Answer → Identify and divide → Departmentalise → Assign duties → Establish relationships.
4
RS Infotech is already working in the technology sector. It is planning to enter the cosmetics and organic products market. Different product lines require separate divisions, so divisional structure is suitable.
(Detailed) → Divisional Organisation Structure is suitable for organisations dealing in multiple products or different product lines. → In this structure, each division is responsible for its own product line and related functions. → RS Infotech Ltd. is already operating in the technology sector for many years. → Now, it plans to enter the cosmetics market and set up a separate cosmetics division. → Since the company will have different product divisions, divisional structure is required. → Hence, Divisional Organisation Structure is the correct answer.
- A) Informal Organisation → It refers to social relationships that arise naturally among employees, not the formal structure needed for a new product division.
- B) Formal Organisation → It is a broad official structure created by management, but it does not specifically indicate product-wise divisions.
- C) Functional Organisation Structure → It groups activities according to functions like production, marketing and finance, but the case focuses on different product lines.
Used
- Option A → Reject because the case is not about social relationships.
- Option B → Reject because it is too general and not the specific structure required.
- Option C → Reject because the company is not merely grouping by functions.
- Option D → Select because technology and cosmetics are different product divisions.
- Final Answer → Different product lines indicate Divisional Organisation Structure.
5 From the following, identify the combination of steps which are NOT a part of organising process. (PYQ 2023)
Statements:
(A) Identification and division of work
(B) Departmentalisation
(C) Estimating the manpower requirement
(D) Placement and Orientation
(E) Establishing Reporting Relationships
Choose the correct answer from the options given below:
Organising includes identification and division of work. Organising also includes departmentalisation and reporting relationships. Estimating manpower requirement and placement/orientation are part of staffing.
(Detailed) → Organising is the process of creating a structure for the organisation. → Its steps include identification and division of work, departmentalisation, assignment of duties and establishing reporting relationships. → Statement (C) Estimating the manpower requirement is not part of organising because it belongs to staffing. → Statement (D) Placement and Orientation is also not part of organising because it belongs to staffing. → Statement (A), Statement (B) and Statement (E) are part of the organising process. → Therefore, the steps which are not part of organising are (C) and (D) only. → Hence, (C) and (D) Only is the correct answer.
- A) (C), (D) and (E) Only → Statement (E) is part of organising, so this option is incorrect.
- B) (D) and (E) Only → Statement (E) is part of organising and Statement (C) is wrongly excluded.
- D) (C) and (E) Only → Statement (E) is part of organising and Statement (D) is wrongly excluded.
Used
- Statement (A) → Part of organising because work is identified and divided first.
- Statement (B) → Part of organising because similar activities are grouped into departments.
- Statement (C) → Part of staffing because it deals with manpower planning.
- Statement (D) → Part of staffing because it deals with placing and introducing employees.
- Statement (E) → Part of organising because it defines authority and reporting relationships.
- Final Answer → Only (C) and (D) are not part of organising.
6 Identify the elements of delegation. (PYQ 2023)
Statements:
(A) Authority
(B) Centralisation
(C) Decentralisation
(D) Accountability
(E) Responsiblity
Choose the correct answer from the options given below:
Delegation includes authority. Responsibility is assigned to the subordinate. Accountability is created for the outcome of assigned work.
(Detailed) → Delegation means entrusting responsibility and authority to subordinates. → Statement (A) Authority is correct because the subordinate must be given the right to take decisions and use resources. → Statement (E) Responsiblity is correct because the subordinate is assigned the duty to perform the task. → Statement (D) Accountability is correct because the subordinate becomes answerable for the final outcome. → Statement (B) Centralisation and Statement (C) Decentralisation are not elements of delegation. → Therefore, the correct combination is (A), (D) and (E) Only. → Hence, (A), (D) and (E) Only is the correct answer.
- A) (A), (B) and (C) Only → Centralisation and Decentralisation are not elements of delegation.
- B) (B), (C) and (D) Only → Centralisation and Decentralisation are not elements, and Authority and Responsibility are missing.
- C) (A), (D) and (C) Only → Decentralisation is not an element of delegation and Responsibility is missing.
Used
- Statement (A) → Correct because authority is one element of delegation.
- Statement (B) → Incorrect because centralisation means concentration of authority at the top level.
- Statement (C) → Incorrect because decentralisation means systematic delegation of authority throughout the organisation, not an element of delegation.
- Statement (D) → Correct because accountability means answerability for results.
- Statement (E) → Correct because responsibility means duty to perform assigned work.
- Final Answer → Delegation has three elements: Authority, Responsibility and Accountability.
7 Identify which of the following concept arises from formal position. (PYQ 2023)
Authority arises from formal position. It gives the right to command. It flows through the organisational hierarchy.
(Detailed) → Authority means the right of a manager to give orders and expect obedience. → It arises because of the formal position held by a manager in the organisation. → A person gets authority when he occupies a particular post in the organisational hierarchy. → Authority allows the manager to take decisions, give directions and use organisational resources. → Since the question asks which concept arises from formal position, Authority is the correct answer. → Hence, Authority is the correct answer.
- B) Responsibility → Responsibility means the duty to perform assigned work.
- C) Accountability → Accountability means answerability for the final outcome of assigned work.
- D) Power → Power is broader than authority and may arise from personal qualities, knowledge, expertise or informal influence.
Used
- Option A → Formal right from position indicates authority.
- Option B → Duty to perform work indicates responsibility.
- Option C → Answerability for result indicates accountability.
- Option D → Influence may be formal or informal, so it is broader than authority.
- Final Answer → Formal position gives Authority.
8 Which of the following statement is correct? (PYQ 2023)
Formal organisation is deliberately created by management. It follows rules, roles, hierarchy and official relationships. It focuses on work rather than interpersonal relationships.
(Detailed) → Formal organisation refers to the official structure created by management. → It clearly defines jobs, authority, responsibility and reporting relationships. → It is task-oriented and focuses on the achievement of organisational objectives. → Personal or interpersonal relationships are not the main focus of formal organisation. → In formal organisation, work relationships are more important than personal relationships. → Hence, Formal organisations emphasizes on work rather than interpersonal relationships is the correct answer.
- A) Formal organisations are quicker in decision making → This is incorrect because formal organisation follows rules and hierarchy, which may slow down decision-making.
- B) Formal organisations are flexible → This is incorrect because formal organisation is generally rigid due to fixed rules and structure.
- D) Formal organisations are formed on its own → This is incorrect because formal organisation is deliberately created by management.
Used
- Option A → Reject because formal structure may delay decisions due to hierarchy.
- Option B → Reject because formal organisation is not very flexible.
- Option C → Select because formal organisation is work-focused.
- Option D → Reject because informal organisation forms on its own, not formal organisation.
- Final Answer → Formal organisation focuses on work and official relationships.
9 Accountability arises from: (PYQ 2023)
Accountability means answerability. It arises when responsibility is assigned. Duty to perform leads to answerability for results.
(Detailed) → Accountability means being answerable for the final outcome of assigned work. → In delegation, a subordinate is given responsibility to perform a task. → When responsibility is assigned, the subordinate becomes accountable for completing the task properly. → Responsibility creates the obligation to do the work, and accountability arises from this responsibility. → Therefore, accountability arises from responsibility. → Hence, Responsibility is the correct answer.
- A) Delegated authority → Authority gives power to take decisions, but accountability directly arises from responsibility.
- C) Formal position → Formal position gives authority, not directly accountability.
- D) Obligation to perform an assigned task → This describes responsibility itself, but the direct source term for accountability is Responsibility.
Used
- Option A → Authority gives decision-making power.
- Option B → Responsibility creates answerability.
- Option C → Formal position gives authority.
- Option D → Obligation to perform is the meaning of responsibility, not the direct option term required.
- Final Answer → Responsibility leads to Accountability.
10 Match List-I with List-II. (PYQ 2023)
| List-I | List-II |
|---|---|
| A. Similar nature activities are grouped together | I. Establishing reporting relationships |
| B. Define the work of different job positions | II. Identification and division of work |
| C. Burden of work can be shared | III. Departmentalisation |
| D. Hierarchical structure for coordination amongst departments | IV. Assignment of duties |
Similar activities are grouped under departmentalisation. Defining the work of different job positions relates to identification and division of work. Sharing burden of work relates to assignment of duties. Hierarchical structure relates to establishing reporting relationships.
(Detailed) → (A) Similar nature activities are grouped together matches with (III) Departmentalisation because departmentalisation means grouping similar activities into departments. → (B) Define the work of different job positions matches with (II) Identification and division of work because total work is identified and divided into specific tasks. → (C) Burden of work can be shared matches with (IV) Assignment of duties because duties are assigned to individuals to distribute work properly. → (D) Hierarchical structure for coordination amongst departments matches with (I) Establishing reporting relationships because hierarchy shows who reports to whom. → Therefore, the correct matching is (A)-(III), (B)-(II), (C)-(IV), (D)-(I). → Hence, (A)-(III), (B)-(II), (C)-(IV), (D)-(I) is the correct answer.
- A) (A)-(I), (B)-(II), (C)-(III), (D)-(IV) → This wrongly matches grouping similar activities with reporting relationships and burden sharing with departmentalisation.
- C) (A)-(III), (B)-(IV), (C)-(II), (D)-(I) → This wrongly matches defining job work with assignment of duties and burden sharing with identification and division of work.
- D) (A)-(II), (B)-(III), (C)-(IV), (D)-(I) → This wrongly matches grouping similar activities with identification and division of work and job definition with departmentalisation.
Used
- (A) → Grouping similar activities means Departmentalisation.
- (B) → Defining job work means Identification and division of work.
- (C) → Sharing burden means Assignment of duties.
- (D) → Hierarchy means Establishing reporting relationships.
- Final Answer → Correct mapping is (A)-(III), (B)-(II), (C)-(IV), (D)-(I).
11 Identify the correct sequence of activities undertaken by a manager when he/she is involved in the process of defining and grouping activities to create a framework of tasks to be performed. (PYQ 2023)
Statements:
(A) Identification of work
(B) Establishing reporting relationships
(C) Departmentalisation
(D) Division of work
(E) Assignment of duties
Choose the correct answer from the options given below:
Organising starts with identifying the total work to be done. The work is then divided and grouped into departments. Duties are assigned and reporting relationships are established at the end.
(Detailed) → Statement (A) Identification of work is the first step because the manager must first identify all activities required to achieve organisational objectives. → Statement (D) Division of work comes next because the total work is divided into smaller and manageable tasks. → Statement (C) Departmentalisation follows because similar and related activities are grouped together into departments. → Statement (E) Assignment of duties is done after departments are formed, so that specific duties can be given to suitable individuals. → Statement (B) Establishing reporting relationships is the last step because authority-responsibility relationships are created after duties are assigned. → Therefore, the correct sequence is (A), (D), (C), (E), (B). → Hence, (A), (D), (C), (E), (B) is the correct answer.
- B) (D), (A), (E), (C), (B) → This is incorrect because division of work cannot come before identification of work.
- C) (B), (A), (D), (C), (E) → This is incorrect because reporting relationships are established at the end, not at the beginning.
- D) (B), (A), (C), (D), (E) → This is incorrect because reporting relationships cannot be the first step and division of work should come before departmentalisation.
Used
- Statement (A) → First identify what work is to be done.
- Statement (D) → Divide the identified work into smaller tasks.
- Statement (C) → Group similar activities into departments.
- Statement (E) → Assign duties to individuals.
- Statement (B) → Establish superior-subordinate relationships at the end.
- Final Answer → Identify → Divide → Departmentalise → Assign → Report.
12 Name the function of management that removes ambiguity and ensure clarity in working relationships. (PYQ 2023)
Organising defines roles and responsibilities. It establishes authority and reporting relationships. It removes confusion in working relationships.
(Detailed) → Organising is the function of management that creates a proper structure in the organisation. → It involves identification and division of work, departmentalisation, assignment of duties and establishment of reporting relationships. → By clearly defining who will do what and who will report to whom, organising removes ambiguity. → It ensures clarity in authority, responsibility and working relationships. → Therefore, the function of management referred to in the question is Organising. → Hence, Organising is the correct answer.
- A) Planning → Planning decides objectives and future course of action, but it does not directly define working relationships.
- C) Staffing → Staffing deals with recruitment, selection, placement, training and development of employees.
- D) Directing → Directing guides, motivates and leads employees, but it does not primarily create the formal structure of relationships.
Used
- Option A → Future goals and plans.
- Option B → Structure, roles and relationships.
- Option C → Human resource filling process.
- Option D → Guidance and motivation.
- Final Answer → Clarity in working relationships indicates Organising.
13 Select the organisation that gives rise to a network of social relationships among employees. (PYQ 2023)
Informal organisation arises naturally. It is based on social interaction among employees. It creates a network of personal and social relationships.
(Detailed) → Informal organisation refers to the network of social relationships that arise spontaneously among employees. → It is not deliberately created by management. → It develops due to friendship, personal interaction, common interests and social needs. → The question directly uses the phrase "network of social relationships," which is a key feature of informal organisation. → Therefore, the organisation referred to is Informal organisation. → Hence, Informal is the correct answer.
- A) Formal → Formal organisation is officially created by management and follows defined authority relationships.
- C) Functional → Functional structure groups activities according to functions such as production, finance and marketing.
- D) Divisional → Divisional structure groups activities according to products, regions or divisions.
Used
- Option A → Official structure created by management.
- Option B → Social relationship network among employees.
- Option C → Function-based grouping.
- Option D → Product or division-based grouping.
- Final Answer → Social relationships indicate Informal organisation.
14 What is the correct sequence of steps in the process of organising? (PYQ 2024)
Statements:
(A) Identification and division of work
(B) Assignment of duties
(C) Establishing reporting relationships
(D) Departmentalisation
Choose the correct answer from the options given below:
Organising starts with identification and division of work. Similar activities are grouped through departmentalisation. Duties are assigned and reporting relationships are established at the end.
(Detailed) → Statement (A) Identification and division of work is the first step because all activities required for achieving organisational objectives must be identified and divided. → Statement (D) Departmentalisation comes next because similar and related activities are grouped into departments. → Statement (B) Assignment of duties follows because work must be assigned to suitable employees after departments are formed. → Statement (C) Establishing reporting relationships is the final step because it defines who will report to whom. → Therefore, the correct sequence is (A), (D), (B), (C). → Hence, (A), (D), (B), (C) is the correct answer.
- A) (A), (B), (C), (D) → This is incorrect because departmentalisation should take place before assignment of duties and reporting relationships.
- B) (B), (C), (D), (A) → This is incorrect because assignment of duties and reporting relationships cannot come before identification and division of work.
- D) (A), (D), (C), (B) → This is incorrect because reporting relationships are established after assignment of duties, not before it.
Used
- Statement (A) → First step because work must be identified and divided.
- Statement (D) → Second step because similar work is grouped.
- Statement (B) → Third step because duties are assigned after grouping.
- Statement (C) → Final step because reporting relationships are established last.
- Final Answer → Divide → Departmentalise → Assign → Report.
15 The informal organisation offers the benefit of: (PYQ 2024)
Informal organisation does not follow prescribed official communication lines. Information spreads quickly through informal channels. It also allows quick feedback among employees.
(Detailed) → Informal organisation arises out of social interaction among employees. → It does not follow the official chain of command or prescribed lines of communication. → Because communication is flexible and free-flowing, information spreads faster. → Quick feedback is also possible because employees communicate directly and informally. → This is an important benefit of informal organisation. → Hence, Prescribed lines of communication are not followed. This leads to faster spread of information as well as quick feedback is the correct answer.
- B) There is no ambiguity in the role that each member has to play as duties are specified. This also helps in avoiding duplication of effort. → This is a feature of formal organisation because formal organisation clearly specifies duties and roles.
- C) Unity of command is maintained through an established chain of command. → This belongs to formal organisation because it follows an official chain of command.
- D) Effective accomplishment of goals by providing a framework for the operations to be performed and ensuring that each employee knows the role he has to play. → This describes formal organisation because it provides a structured framework for work.
Used
- Option A → No prescribed communication lines indicate informal organisation.
- Option B → Defined duties and roles indicate formal organisation.
- Option C → Chain of command indicates formal organisation.
- Option D → Framework and role clarity indicate formal organisation.
- Final Answer → Faster communication and quick feedback are benefits of informal organisation.
16 Interaction among people at work gives rise to a network of social relationships among employees called (PYQ 2024)
Informal organisation arises from interaction among employees. It forms naturally at the workplace. It creates a network of social relationships.
(Detailed) → Informal organisation is formed naturally among employees through social interaction. → It is not deliberately created by management. → Employees develop personal relationships, friendships and informal communication channels while working together. → The phrase "network of social relationships" directly indicates informal organisation. → Therefore, the concept referred to in the question is Informal organisation. → Hence, Informal organisation is the correct answer.
- B) Formal organisation → It is an official structure deliberately created by management.
- C) Functional organisation → It groups activities according to functions like production, finance and marketing.
- D) Divisional organisation → It groups activities according to products, regions or divisions.
Used
- Option A → Social interaction and natural relationships indicate informal organisation.
- Option B → Official structure indicates formal organisation.
- Option C → Function-based grouping indicates functional organisation.
- Option D → Product-based grouping indicates divisional organisation.
- Final Answer → Interaction among people at work creates informal organisation.
17 Grouping of the activities on the basis of Products is related to: (PYQ 2024)
Divisional organisation groups activities product-wise. Each division may handle a separate product line. Product-based grouping is a key feature of divisional structure.
(Detailed) → Divisional organisation structure is used when activities are grouped on the basis of products, services, regions or divisions. → In this structure, each product division may have its own functional departments such as production, marketing and finance. → The question specifically mentions grouping of activities on the basis of products. → Product-wise grouping directly indicates divisional organisation. → Hence, Divisional Organisation is the correct answer.
- A) Functional Organisation → It groups activities on the basis of functions, not products.
- B) Centralised Organisation → It refers to concentration of decision-making authority at the top level.
- C) Decentralised Organisation → It refers to systematic dispersal of authority to lower levels.
Used
- Option A → Function-based grouping.
- Option B → Authority concentrated at top level.
- Option C → Authority distributed to lower levels.
- Option D → Product-based grouping.
- Final Answer → Product basis means Divisional Organisation.
18 Which of the following are advantages of functional structure of an organisation? (PYQ 2024)
Statements:
(A) Leads to occupational specialisation.
(B) Places less emphasis on organisational objectives.
(C) Promotes coordination and control within a department.
(D) Increases operational efficiency.
Choose the correct answer from the options given below:
Functional structure leads to occupational specialisation. It promotes coordination and control within departments. It increases operational efficiency. Placing less emphasis on organisational objectives is a disadvantage, not an advantage.
(Detailed) → Statement (A) is correct because functional structure groups similar activities together, leading to occupational specialisation. → Statement (C) is correct because people performing similar functions work under one department, which improves coordination and control within that department. → Statement (D) is correct because specialisation and clarity of work increase operational efficiency. → Statement (B) is incorrect because placing less emphasis on overall organisational objectives is a limitation of functional structure, not an advantage. → Therefore, the correct combination is (A), (C) and (D) only. → Hence, (A), (C) and (D) only is the correct answer.
- A) (A), (B) and (C) only → Statement (B) is incorrect because it is a disadvantage, not an advantage.
- B) (A) and (B) only → Statement (B) is incorrect and Statements (C) and (D) are missed.
- D) (C) and (D) only → Statement (A) is also a correct advantage but is missing in this option.
Used
- Statement (A) → Correct because functional grouping creates specialisation.
- Statement (B) → Incorrect because it is a limitation.
- Statement (C) → Correct because coordination improves within departments.
- Statement (D) → Correct because specialisation improves efficiency.
- Final Answer → Correct advantages are (A), (C) and (D).
19 Match List-I with List-II on the basis of meaning and the term. (PYQ 2024)
| List-I (Meaning) | List-II (Term) |
|---|---|
| A. Right to command | I. Answerability |
| B. Obligation to perform task | II. Delegation |
| C. Accountability | III. Authority |
| D. Basis of management hierarchy | IV. Responsibility |
Authority means right to command. Responsibility means obligation to perform a task. Accountability means answerability. Delegation is the basis of management hierarchy.
(Detailed) → (A) Right to command matches with (III) Authority because authority gives a manager the right to give orders and expect obedience. → (B) Obligation to perform task matches with (IV) Responsibility because responsibility means the duty to perform assigned work. → (C) Accountability matches with (I) Answerability because accountability means being answerable for the final outcome. → (D) Basis of management hierarchy matches with (II) Delegation because delegation creates superior-subordinate relationships and distributes authority. → Therefore, the correct matching is (A)-(III), (B)-(IV), (C)-(I), (D)-(II). → Hence, (A)-(III), (B)-(IV), (C)-(I), (D)-(II) is the correct answer.
- A) (A)-(I), (B)-(II), (C)-(III), (D)-(IV) → This is incorrect because right to command is not answerability and obligation to perform task is not delegation.
- B) (A)-(I), (B)-(III), (C)-(II), (D)-(IV) → This is incorrect because right to command is not answerability and obligation to perform task is not authority.
- C) (A)-(I), (B)-(II), (C)-(IV), (D)-(III) → This is incorrect because right to command is not answerability and accountability is not responsibility.
Used
- (A) → Right to command means Authority.
- (B) → Obligation to perform means Responsibility.
- (C) → Accountability means Answerability.
- (D) → Basis of hierarchy means Delegation.
- Final Answer → Correct matching is (A)-(III), (B)-(IV), (C)-(I), (D)-(II).
20 Identify the correct sequence of Organising function of management. (PYQ 2024)
Statements:
(A) Establishing authority and reporting relationships
(B) Departmentalisation
(C) Identification and division of work
(D) Assignment of duties
Choose the correct answer from the options given below:
Work is first identified and divided. Similar activities are grouped into departments. Duties are assigned to employees. Authority and reporting relationships are then established.
(Detailed) → Statement (C) Identification and division of work is the first step because the total work of the organisation must first be divided into manageable activities. → Statement (B) Departmentalisation is the second step because similar activities are grouped together into departments. → Statement (D) Assignment of duties is the third step because duties are assigned to suitable employees after departments are formed. → Statement (A) Establishing authority and reporting relationships is the final step because it clarifies who reports to whom. → Therefore, the correct sequence is (C), (B), (D), (A). → Hence, (C), (B), (D), (A) is the correct answer.
- A) (A), (B), (C), (D) → Authority relationships cannot be established before division of work and assignment of duties.
- B) (A), (C), (B), (D) → Organising cannot begin with authority and reporting relationships.
- C) (B), (A), (D), (C) → Departmentalisation cannot come before identification and division of work.
Used
- Statement (C) → First step because work must be identified and divided.
- Statement (B) → Second step because similar activities are grouped.
- Statement (D) → Third step because duties are assigned.
- Statement (A) → Final step because reporting relationships are established last.
- Final Answer → Divide → Departmentalise → Assign → Authority.
21 The formal organisation can be better understood by a study of its features which are as follows: Which of the following options are correct? (PYQ 2024)
Statements:
(A) It specifies the relationships among various job positions and the nature of their inter-relationship. This clarifies who has to report to whom.
(B) It is a means to achieve the objectives specified in the plans, as it lays down rules and procedures essential for their.
(C) Independent channels of communication without specified direction of flow of information are developed by group members.
(D) It is deliberately designed by the top management to facilitate the smooth functioning of the organisation.
Choose the correct answer from the options given below:
Formal organisation has clearly defined job positions and relationships. It follows rules and procedures to achieve planned objectives. It is deliberately created by top management. Independent communication channels belong to informal organisation.
(Detailed) → Statement (A) is correct because formal organisation specifies relationships among job positions and clarifies who has to report to whom. → Statement (B) is correct because formal organisation helps in achieving planned objectives by laying down rules and procedures. → Statement (D) is correct because formal organisation is deliberately designed by top management for smooth functioning. → Statement (C) is incorrect because independent channels of communication without fixed direction are developed in informal organisation, not formal organisation. → Therefore, the correct combination is (A), (B) and (D) only. → Hence, (A), (B) and (D) only is the correct answer.
- B) (A), (B) and (C) only → Statement (C) is incorrect because it belongs to informal organisation.
- C) (A), (B), (C) and (D) → Statement (C) is incorrect, so all four statements cannot be correct.
- D) (B), (C) and (D) only → Statement (C) is incorrect and Statement (A) is wrongly excluded.
Used
- Statement (A) → Correct because formal organisation clearly defines reporting relationships.
- Statement (B) → Correct because formal organisation supports planned objectives through rules and procedures.
- Statement (C) → Incorrect because free-flowing independent communication is informal organisation.
- Statement (D) → Correct because formal organisation is deliberately created by top management.
- Final Answer → Formal organisation = Planned + Rules + Reporting + Top management design.
22 A company hired consultants to restructure departments for better efficiency. Identify the management function. (PYQ 2025)
The question focuses on restructuring departments. Organizing creates a proper structure of roles and departments. It helps in improving efficiency by arranging work properly.
(Detailed) → Organizing is the function of management that involves arranging resources, assigning duties and establishing authority relationships. → It creates a suitable organisational structure so that work can be performed efficiently. → In the given case, the company hired consultants to restructure departments. → Restructuring departments means redesigning the organisation structure for better efficiency. → Therefore, the management function involved is Organizing. → Hence, Organizing is the correct answer.
- A) Planning → Planning means setting objectives and deciding future course of action, not restructuring departments.
- C) Leading → Leading means motivating, guiding and influencing employees, not redesigning departments.
- D) Controlling → Controlling means measuring performance and correcting deviations, not creating structure.
Used
- Option A → Look for goals and future plans; not given here.
- Option B → Restructuring departments directly indicates organizing.
- Option C → No motivation or leadership situation is mentioned.
- Option D → No comparison of actual performance with standards is mentioned.
- Final Answer → Structure and departments = Organizing.
23 Which of the following best reflects that management aims at achieving results through others? (PYQ 2025)
Delegation means assigning work to others. Authority is transferred to subordinates to complete tasks. It helps managers achieve results through people.
(Detailed) → Delegation means assigning responsibility and granting authority to subordinates to perform tasks. → It allows managers to get work done through others instead of doing everything themselves. → Management aims at achieving organisational goals through the efforts of people. → Since delegation directly involves assigning work and authority to others, it best reflects the idea of achieving results through others. → Hence, Delegation is the correct answer.
- A) Efficiency → Efficiency means completing work with minimum cost and resources, not specifically achieving results through others.
- B) Leadership → Leadership means influencing and guiding people, but it does not specifically involve transfer of authority.
- D) Supervision → Supervision means overseeing work, not assigning authority and responsibility.
Used
- Option A → Focuses on cost and resources.
- Option B → Focuses on influence and guidance.
- Option C → Focuses on getting work done through others.
- Option D → Focuses on monitoring work.
- Final Answer → "Achieving results through others" directly indicates Delegation.
24 Which of these is a feature of informal organisation? (PYQ 2025)
Informal organisation develops naturally. It is based on personal relationships and social interaction. It does not follow a fixed official structure or hierarchy.
(Detailed) → Informal organisation develops spontaneously among employees in the workplace. → It is based on personal relationships, friendship, common interests and social interaction. → It is not deliberately created by management. → It does not follow fixed hierarchy, official roles or formal communication channels. → Since the question asks for a feature of informal organisation, "Based on personal relationships" is the correct feature. → Hence, Based on personal relationships is the correct answer.
- A) Clear structure and hierarchy → This is a feature of formal organisation.
- C) Defined roles and responsibilities → This is also a feature of formal organisation.
- D) Official communication channels → Official communication channels are found in formal organisation.
Used
- Option A → Formal organisation feature.
- Option B → Informal organisation feature.
- Option C → Formal organisation feature.
- Option D → Formal organisation feature.
- Final Answer → Informal organisation is based on personal relationships.
25 Identify the element of delegation where the subordinate is answerable for the outcome. (PYQ 2025)
Accountability means answerability. The subordinate becomes answerable for the final result. It is an important element of delegation.
(Detailed) → Accountability means being answerable for the final outcome of an assigned task. → In delegation, authority is granted and responsibility is assigned to the subordinate. → Once responsibility is assigned, the subordinate becomes accountable for the performance and result of the task. → The keyword "answerable for the outcome" directly indicates accountability. → Hence, Accountability is the correct answer.
- A) Authority → Authority means the right to take decisions and give orders.
- B) Responsibility → Responsibility means the duty to perform the assigned task.
- D) Delegation → Delegation is the overall process of assigning responsibility and granting authority.
Used
- Option A → Power to decide.
- Option B → Duty to perform.
- Option C → Answerability for outcome.
- Option D → Overall process, not one specific element.
- Final Answer → "Answerable" means Accountability.
26 Arrange the steps of organizing. (PYQ 2025)
Statements::
(A) Division of work
(B) Departmentalisation
(C) Assignment of duties
(D) Authority relationships
Choose the correct answer from the options given below:
Work is divided first. Similar activities are grouped into departments. Duties are assigned to individuals. Authority relationships are established at the end.
(Detailed) → Statement (A) Division of work comes first because total work must be divided into smaller activities. → Statement (B) Departmentalisation comes next because similar activities are grouped into departments. → Statement (C) Assignment of duties follows because work is assigned to suitable individuals after departments are formed. → Statement (D) Authority relationships are established at the end to define who reports to whom. → Therefore, the correct sequence is (A), (B), (C), (D). → Hence, (A), (B), (C), (D) is the correct answer.
- B) (B), (A), (C), (D) → Departmentalisation cannot happen before division of work.
- C) (A), (C), (B), (D) → Duties cannot be assigned before departmentalisation.
- D) (A), (B), (D), (C) → Authority relationships are established after duties are assigned.
Used
- Statement (A) → First step because work must be divided.
- Statement (B) → Second step because similar activities are grouped.
- Statement (C) → Third step because duties are assigned after grouping.
- Statement (D) → Final step because authority relationships are created last.
- Final Answer → Divide → Departmentalise → Assign → Authority.
27 Which of the following is the correct order of steps a manager must undertake while structuring tasks and creating a formal authority system within an enterprise? (PYQ 2025)
Statements:
(A) Clarify who reports to whom and who commands whom
(B) Divide the work into specific roles
(C) Allocate duties based on competency
(D) Group similar activities into functional units
Choose the correct answer from the options given below:
Work is first divided into specific roles. Similar activities are grouped into functional units. Duties are allocated according to competency. Reporting and command relationships are clarified at the end.
(Detailed) → Statement (B) comes first because the manager must divide the work into specific roles. → Statement (D) comes next because similar activities are grouped into functional units. → Statement (C) follows because duties are allocated to people based on their competency. → Statement (A) comes last because reporting and command relationships are clarified after roles and duties are fixed. → Therefore, the correct sequence is (B), (D), (C), (A). → Hence, (B), (D), (C), (A) is the correct answer.
- B) (A), (C), (D), (B) → Reporting relationships cannot be clarified before division, grouping and duty allocation.
- C) (C), (A), (B), (D) → Duties cannot be allocated before dividing and grouping the work.
- D) (D), (B), (C), (A) → Grouping similar activities should come after division of work, not before it.
Used
- Statement (B) → First step because work is divided into roles.
- Statement (D) → Second step because similar activities are grouped.
- Statement (C) → Third step because duties are allocated after grouping.
- Statement (A) → Final step because reporting relationships are clarified last.
- Final Answer → Divide → Group → Assign → Report.
28 Arrange the following steps of organising process in a logical sequence. (PYQ 2025)
Statements:
(A) Establishing authority and reporting relationship
(B) Identification of work
(C) Departmentalisation
(D) Division of work
(E) Assignment of duties
Choose the correct answer from the options given below:
Organising starts with identification of work. Work is then divided into smaller tasks. Similar activities are grouped into departments. Duties are assigned and authority relationships are established.
(Detailed) → Statement (B) Identification of work is the first step because the organisation must know what activities are required. → Statement (D) Division of work comes next because total work is divided into smaller and manageable tasks. → Statement (C) Departmentalisation follows because similar activities are grouped into departments. → Statement (E) Assignment of duties comes after departmentalisation because duties are assigned to suitable individuals. → Statement (A) Establishing authority and reporting relationship is the last step because it clarifies superior-subordinate relationships. → Therefore, the correct sequence is (B), (D), (C), (E), (A). → Hence, (B), (D), (C), (E), (A) is the correct answer.
- A) (C), (D), (E), (A), (B) → Departmentalisation cannot come before identification and division of work.
- B) (C), (E), (A), (B), (D) → Grouping and assignment cannot happen before identifying and dividing the work.
- D) (A), (B), (C), (D), (E) → Authority relationships are established at the end, not at the beginning.
Used
- Statement (B) → First step because work must be identified.
- Statement (D) → Second step because identified work is divided.
- Statement (C) → Third step because similar activities are grouped.
- Statement (E) → Fourth step because duties are assigned.
- Statement (A) → Final step because authority and reporting relationships are established.
- Final Answer → Identify → Divide → Group → Assign → Authority.
