Part 1

1. **Which management function involves arranging human and non-human resources to achieve
organizational objectives?**

- A) Planning

- B) Organizing

- C) Leading

- D) Controlling

- **Answer:** B) Organizing

2. **What is the end result of the organizing process?**

- A) A strategic plan

- B) An organization

- C) A management hierarchy

- D) A mission statement

- **Answer:** B) An organization

3. **Which step in the organizing process involves reconsidering the objectives established during
planning?**

- A) Identification of objectives

- B) Grouping of activities

- C) Assigning work

- D) Provision for coordination

- **Answer:** A) Identification of objectives

4. **What is division of labor in the organizing process?**

- A) Delegating authority to employees

- B) Grouping similar activities

- C) Identifying specific activities needed to accomplish objectives

- D) Designing a hierarchy of relationships

 - **Answer:** C) Identifying specific activities needed to accomplish objectives

5. **What is the process of grouping similar activities in the organizing process called?**

- A) Specialization

- B) Departmentation

- C) Delegation

- D) Coordination

- **Answer:** B) Departmentation

6. **What does the vertical structuring of an organization result in?**

- A) Horizontal relationships

- B) Decision-making hierarchy

- C) Informal groups

- D) Work specialization

- **Answer:** B) Decision-making hierarchy

7. **What does the organization chart visually show?**

- A) Informal relationships

- B) Social networks

- C) Formal structure of authority

- D) Cultural values

- **Answer:** C) Formal structure of authority

8. **Which type of organization is characterized by well-defined authority and job titles?**

- A) Formal organization

- B) Informal organization

- C) Horizontal organization

- D) Vertical organization

- **Answer:** A) Formal organization

9. **What is a Sociogram?**

- A) A diagram of formal relationships

- B) A diagram of group attraction

- C) A job description chart

- D) A decision-making hierarchy

- **Answer:** B) A diagram of group attraction

10. **Why do informal groups exist?**

- A) To create formal procedures

- B) To fulfill needs not met by the formal organization

- C) To establish a hierarchy

- D) To enforce company policies

- **Answer:** B) To fulfill needs not met by the formal organization

11. **Which of the following is NOT a reason people form informal groups?**

- A) Proximity and interaction

- B) Similarity

- C) Formal authority

- D) Need for satisfaction

- **Answer:** C) Formal authority

12. **What is one negative impact of informal groups on formal organizations?**

- A) Increased communication

- B) Enhanced collaboration

- C) Resistance to change

- D) Increased productivity

- **Answer:** C) Resistance to change

13. **What is one positive impact of informal groups on formal organizations?**

 - A) Create rumors

- B) Hamper implementation of changes

- C) Provide support to management

- D) Increase conflict

- **Answer:** C) Provide support to management

14. **What is a major element of the organizing function that involves breaking down a task into its
most basic elements?**

- A) Job description

- B) Division of labor

- C) Coordination

- D) Delegation

- **Answer:** B) Division of labor

15. **Which of the following is an advantage of division of labor?**

- A) Increased boredom

- B) Limited knowledge

- C) Ease of supervision

- D) Communication barriers

- **Answer:** C) Ease of supervision

16. **Which of the following is a disadvantage of division of labor?**

- A) Increased efficiency

- B) Less wastage of materials

- C) Training is easier

- D) Creates communication barriers

- **Answer:** D) Creates communication barriers

17. **Which type of informal group includes people on the same level of the organization?**

- A) Horizontal groups
 - B) Vertical groups

- C) Mixed groups

- D) Formal groups

- **Answer:** A) Horizontal groups

18. **Which type of informal group includes people from different levels of the formal organization and
different work areas?**

- A) Horizontal groups

- B) Vertical groups

- C) Mixed groups

- D) Formal groups

- **Answer:** C) Mixed groups

19. **Which function of informal groups involves regulating or influencing the behavior, dress, or work
standards of their members?**

- A) Providing information

- B) Maintaining social values

- C) Influencing the work environment

- D) Providing status fulfillment

- **Answer:** C) Influencing the work environment

20. **Why do informal groups pose a challenge for managers?**

- A) They are shown on the company’s organizational chart

- B) They consist of actual operating relationships not prescribed by the formal organization

- C) They always support management

- D) They do not influence the work environment

- **Answer:** B) They consist of actual operating relationships not prescribed by the formal
organization

Part 2

1. **What is Departmentation?**
 - A) The process of dividing overall operations into sub-activities and combining them into working
groups.

- B) The process of hiring new employees.

- C) The process of budgeting.

- D) The process of marketing a new product.

- **Answer: A**

2. **Which of the following is NOT a common base for Departmentation?**

- A) Function

- B) Territory

- C) Time

- D) Customer

- **Answer: C**

3. **Which is a key advantage of Departmentation by Function?**

- A) Reduces the need for training.

- B) Maintains power and prestige of major functions of the organization.

- C) Reduces the overall number of employees needed.

- D) Ensures quick decision-making at all levels.

- **Answer: B**

4. **A disadvantage of Departmentation by Function is:**

- A) Overemphasis on overall company objectives.

- B) Simplifies training.

- C) Reduces coordination and communication between functions.

- D) Promotes operational inefficiency.

- **Answer: C**

5. **Which Departmentation base is best suited for an organization operating in diverse geographic
regions?**
 - A) Function

- B) Process

- C) Territory

- D) Customer

- **Answer: C**

6. **An advantage of Departmentation by Territory is:**

- A) Places emphasis on global markets.

- B) Facilitates use of specialized skills.

- C) Encourages local participation in decision-making.

- D) Reduces the need for general managers.

- **Answer: C**

7. **Which of the following is NOT a disadvantage of Departmentation by Product?**

- A) Requires more general managers.

- B) Increases the problem of top management control.

- C) Reduces the use of specialized skills.

- D) Duplicates services and efforts.

- **Answer: C**

8. **Departmentation by Customer is best for:**

- A) Companies with similar product lines.

- B) Organizations with diverse geographic locations.

- C) Enterprises focused on different customer needs.

- D) Manufacturing firms with complex processes.

- **Answer: C**

9. **Which Departmentation base groups activities around a type of equipment?**

- A) Product
 - B) Function

- C) Process

- D) Customer

- **Answer: C**

10. **An advantage of Departmentation by Process is:**

- A) Facilitates growth and diversity of products.

- B) Simplifies training.

- C) Reduces the need for general managers.

- D) Encourages local participation in decision-making.

- **Answer: B**

11. **The downward pushing of authority from superiors to subordinates is called:**

- A) Centralization

- B) Departmentation

- C) Decentralization

- D) Delegation of Authority

- **Answer: D**

12. **Which step in the delegation process involves assigning specific tasks to subordinates?**

- A) Creation of accountability

- B) Delegation of authority

- C) Acceptance of responsibility

- D) Assignment of tasks

- **Answer: D**

13. **What is Accountability in the context of delegation?**

- A) The obligation to complete assigned duties.

- B) The right to commit resources.

 - C) Taking the consequences for actions taken.

- D) Delegating tasks to subordinates.

- **Answer: C**

14. **An organization where decision-making power remains at the top is considered:**

- A) Decentralized

- B) Delegated

- C) Departmentalized

- D) Centralized

- **Answer: D**

15. **Which of the following factors can determine the degree of centralization or decentralization in an
organization?**

- A) Geographic dispersion of operations

- B) Types of products sold

- C) Customer satisfaction

- D) Number of employees

- **Answer: A**

16. **A common problem managers face when delegating authority is:**

- A) Lack of authority

- B) Fear of being replaced by subordinates

- C) Lack of subordinates

- D) Overconfidence in subordinates

- **Answer: B**

17. **Reluctance to accept delegation from subordinates is often due to:**

- A) Fear of loss of power

- B) Lack of self-confidence

- C) Desire to do everything themselves

 - D) Overconfidence in their abilities

- **Answer: B**

18. **Improved communication between managers and subordinates can help:**

- A) Centralize decision-making

- B) Reduce the number of departments

- C) Make delegation more effective

- D) Increase employee turnover

- **Answer: C**

19. **Centralization and Decentralization form a continuum with many possible degrees of:**

- A) Delegation of authority

- B) Specialization

- C) Departmentation

- D) Responsibility

- **Answer: A**

20. **Which of the following is NOT a problem from subordinates regarding delegation?**

- A) Fear of failure and criticism

- B) Belief that decision-making is the boss’s job

- C) Lack of confidence in subordinates

- D) Lack of adequate information and resources

- **Answer: C**

Part 3

1. **Which type of authority defines the relationship between superior and subordinate?**

- A) Staff Authority

- B) Functional Authority

- C) Line Authority
 - D) Delegated Authority

- **Answer: C) Line Authority**

2. **Which type of authority is primarily advisory in nature?**

- A) Line Authority

- B) Staff Authority

- C) Functional Authority

- D) Delegated Authority

- **Answer: B) Staff Authority**

3. **Which type of authority allows a manager or department to control specific processes or practices
across departments?**

- A) Line Authority

- B) Staff Authority

- C) Functional Authority

- D) Delegated Authority

- **Answer: C) Functional Authority**

4. **Line authority is represented by which of the following?**

- A) Advice and technical assistance

- B) Standard chain of command

- C) Control over specific processes

- D) Consulting with other departments

- **Answer: B) Standard chain of command**

5. **Staff authority normally flows in which direction?**

- A) Downward

- B) Upward

- C) Horizontally

- D) Diagonally
 - **Answer: B) Upward**

6. **Which departments are typically designated as line departments?**

- A) Legal, personnel, computer service

- B) Production, marketing, finance

- C) Research and development, plant maintenance

- D) Public relations, customer service, logistics

- **Answer: B) Production, marketing, finance**

7. **Staff departments are primarily created based on what?**

- A) Hierarchical needs

- B) Special needs of the organization

- C) Financial requirements

- D) Geographic location

- **Answer: B) Special needs of the organization**

8. **Functional authority can be exercised by which type of department heads?**

- A) Only line managers

- B) Only staff managers

- C) Both line and staff managers

- D) Only departmental heads

- **Answer: C) Both line and staff managers**

9. **Conflict between line and staff managers often arises because:**

- A) Line managers feel they have more authority

- B) Staff managers want to make money

- C) Staff managers attempt to take credit for line managers' ideas

- D) Line managers are usually younger

- **Answer: C) Staff managers attempt to take credit for line managers' ideas**
10. **Which of the following is a benefit of having staff managers?**

- A) They can override line managers' decisions

- B) They provide specialized advice to line managers

- C) They handle all financial decisions

- D) They manage the entire organization

- **Answer: B) They provide specialized advice to line managers**

11. **What is another term for span of management?**

- A) Line of authority

- B) Hierarchical level

- C) Span of control

- D) Organizational chart

- **Answer: C) Span of control**

12. **Which span of management results in a tall organizational structure?**

- A) Wide span of management

- B) Narrow span of management

- C) Flat span of management

- D) Moderate span of management

- **Answer: B) Narrow span of management**

13. **A wide span of management typically leads to:**

- A) Many hierarchical levels

- B) Close supervision of subordinates

- C) Few hierarchical levels

- D) Centralized decision-making

- **Answer: C) Few hierarchical levels**

14. **One of the advantages of a narrow span of management is:**

 - A) Superiors have more time for decision-making

- B) It encourages delegation

- C) It lowers organizational costs

- D) Close supervision and control

- **Answer: D) Close supervision and control**

15. **What is a disadvantage of a wide span of management?**

- A) Superiors are underutilized

- B) High costs due to many levels

- C) Danger of superiors' loss of control

- D) Limited communication between levels

- **Answer: C) Danger of superiors' loss of control**

16. **Organization structure is defined as the formal pattern of:**

- A) Interactions and coordination

- B) Employee evaluations

- C) Financial planning

- D) Market analysis

- **Answer: A) Interactions and coordination**

17. **An organization chart does NOT show:**

- A) Chain of command

- B) Informal communication channels

- C) Number of managerial levels

- D) Hierarchy of decision-making

- **Answer: B) Informal communication channels**

18. **The horizontal dimension of an organization structure identifies:**

- A) Authority relationships
 - B) Geographic dispersion

- C) Departments, units, and divisions

- D) Managerial levels

- **Answer: C) Departments, units, and divisions**

19. **A flat organizational structure is characterized by:**

- A) Many levels of management

- B) Few levels of management

- C) High centralization

- D) Close supervision

- **Answer: B) Few levels of management**

20. **The principle of span of management states that:**

- A) There is a specific number of subordinates for each manager

- B) Managers should have as many subordinates as possible

- C) There are factors affecting the span of management

- D) The span should be narrow to ensure control

- **Answer: C) There are factors affecting the span of management**