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Nature and Significance of Management

Read the following passage and answer the question.On Monday, an urgent meeting was called by administrative head of ABC Ltd. The company has been wit

Reading Comprehension

Read the following passage and answer the question.
On Monday, an urgent meeting was called by administrative head of ABC Ltd. The company has been witnessing various problems such as wastages of resources, ambiguity in transfer of information and inefficient Administration. Thus, organisational restructuring was need of the hour. The HR manager stated that "'the company needs to specify relationship between people, work and resources." Thus suggest an organisational structure based on the similar functions performed. Whereas marketing manager is of the opinion that company should be structured based on product line of the company. The meeting went for an hour and adjourned for next Monday and both the managers were called with valid justification for their claims.

1) Question

Which function of management is highlighted in the above case?

Planning

Directing

Organising

Staffing

Solution

Correct option is C

Organising function of management is highlighted in the given case study.

2) Question

Which type of organisational structure is advocated by the HR Manager of ABC Ltd.

Divisional

Formal

Functional

Informal

Solution

Correct option is C

Functional Structure is advocated by the HR Manager of ABC Ltd., as HR Manager has suggested to group jobs based on the similar functions performed.

3) Question

Which type of Organisational Structure is advocated by the marketing manager?

Divisional

Informal

Formal

Functional

Solution

Correct option is A

Divisional Structure is advocated by the Marketing Manager of ABC Ltd., as Marketing Manager has suggested to group jobs based on product line of the company.

4) Question

The company has been facing problems of ambiguity in transfer of information among the employees. Which importance of organising helps in removing this problem?

Benefits of Specialisation

Clarity in working relationships

Adaptation to change

Effective Administration

Solution

Correct option is B

The importance of organising which would help in removing the problem of ambiguity in transfer of information among the employees is ‘Clarity in working relationships’.

5) Question

Which of the following statement can strengthen the claim made by the Marketing Manager?

Our Organisation is large Organisation

We have issue of wastages of resources so this type of structure is good

We deal in large product line like cosmetics, garments, footwear etc.

It would not lead to increase in costs.

Solution

Correct option is C

‘We deal in large product line like cosmetics, garments, footwear etc.’ would strengthen the claim made by Marketing Manager because product specialisation becomes very important for company producing multiple products.