MORE 100 MCQS ON Chapter 5: Organizing
CBSE BOARD 2024
1. The management function that initiates implementation of plans by clarifying jobs and working relationships is called:
A) Planning
B) Organizing
C) Staffing
D) Controlling
Correct Answer: B) Organizing.
Board Tip: Organizing translates plans into action by defining who will do what and establishing reporting relationships.
Board Tip: Organizing translates plans into action by defining who will do what and establishing reporting relationships.
PREDICTIVE
2. Which is the first step in the process of organizing?
A) Departmentalization
B) Assignment of duties
C) Identification and division of work
D) Establishing reporting relationships
Correct Answer: C) Identification and division of work.
Logic: Before you can group tasks or assign them, you must first figure out what the total work is and divide it into manageable activities.
Logic: Before you can group tasks or assign them, you must first figure out what the total work is and divide it into manageable activities.
CASE SCENARIO
3. 'Apex Electronics' divided its operations into four distinct units: Production, Finance, Marketing, and Human Resources. This step in the organizing process is known as:
A) Division of work
B) Departmentalization
C) Assignment of duties
D) Establishing reporting relationships
Correct Answer: B) Departmentalization.
Analysis: Grouping similar or related jobs together into larger units (departments) happens immediately after dividing the work.
Analysis: Grouping similar or related jobs together into larger units (departments) happens immediately after dividing the work.
CBSE BOARD 2023
4. Once departments are created, each job must be allocated to an individual according to their skill and competency. This step is called:
A) Division of work
B) Departmentalization
C) Assignment of duties
D) Establishing reporting relationships
Correct Answer: C) Assignment of duties.
ASSERTION-REASON
5. Assertion (A): Division of work leads to specialization.
Reason (R): When a worker performs a specific job repeatedly over time, they gain experience and improve their efficiency.
Reason (R): When a worker performs a specific job repeatedly over time, they gain experience and improve their efficiency.
A) Both (A) and (R) are true and (R) is the correct explanation.
B) Both (A) and (R) are true but (R) is NOT the explanation.
C) (A) is true, but (R) is false.
D) (A) is false, but (R) is true.
Correct Answer: A) Both (A) and (R) are true and (R) is the correct explanation.
Logic: This highlights the "Benefits of Specialization", which is a primary importance of organizing.
Logic: This highlights the "Benefits of Specialization", which is a primary importance of organizing.
CBSE SAMPLE PAPER 2025
6. The final step in the process of organizing, which creates a hierarchical structure and helps in coordination among various departments, is:
A) Identification of work
B) Departmentalization
C) Assignment of duties
D) Establishing reporting relationships
Correct Answer: D) Establishing reporting relationships.
Board Tip: This step clarifies "who has to take orders from whom" and fixes accountability.
Board Tip: This step clarifies "who has to take orders from whom" and fixes accountability.
TRICKY QUESTION
7. Departmentalization can be done on the basis of:
A) Functions (e.g., Marketing, Finance)
B) Products (e.g., Cosmetics, Garments)
C) Territory (e.g., North, South)
D) All of the above
Correct Answer: D) All of the above.
Note: Grouping can be done in multiple ways depending on what best suits the organization's needs.
Note: Grouping can be done in multiple ways depending on what best suits the organization's needs.
COMPETENCY BASED
8. In an IT firm, whenever a task is assigned, it is clearly defined in a written document outlining the job title, responsibilities, and the person they report to. Which importance of organizing is highlighted here?
A) Benefits of specialization
B) Clarity in working relationships
C) Adaptation to change
D) Expansion and growth
Correct Answer: B) Clarity in working relationships.
Analysis: Written job descriptions and clear reporting lines remove ambiguity in the transfer of information and instructions.
Analysis: Written job descriptions and clear reporting lines remove ambiguity in the transfer of information and instructions.
CBSE BOARD 2022
9. Organizing leads to the proper usage of all material, financial, and human resources by avoiding duplication of work. This refers to which importance of organizing?
A) Effective administration
B) Development of personnel
C) Optimum utilization of resources
D) Adaptation to change
Correct Answer: C) Optimum utilization of resources.
ASSERTION-REASON
10. Assertion (A): Organizing helps in effective administration.
Reason (R): It provides a clear description of jobs and working relationships, which helps avoid confusion and duplication.
Reason (R): It provides a clear description of jobs and working relationships, which helps avoid confusion and duplication.
A) Both (A) and (R) are true and (R) is the correct explanation.
B) Both (A) and (R) are true but (R) is NOT the explanation.
C) (A) is true, but (R) is false.
D) (A) is false, but (R) is true.
Correct Answer: A) Both (A) and (R) are true and (R) is the correct explanation.
PREDICTIVE
11. By delegating routine tasks to subordinates, a manager is able to focus on highly strategic issues. This highlights which importance of organizing?
A) Adaptation to change
B) Expansion and growth
C) Development of personnel
D) Optimum utilization of resources
Correct Answer: C) Development of personnel.
Logic: Delegation reduces the manager's workload, allowing them to develop new skills, while subordinates also learn by taking on new responsibilities.
Logic: Delegation reduces the manager's workload, allowing them to develop new skills, while subordinates also learn by taking on new responsibilities.
CBSE BOARD 2021
12. Which process ensures that the organization structure can be modified according to changes in the business environment?
A) Planning
B) Directing
C) Organizing
D) Controlling
Correct Answer: C) Organizing.
Note: A sound organizational structure is flexible and allows an enterprise to accommodate changes (Adaptation to change).
Note: A sound organizational structure is flexible and allows an enterprise to accommodate changes (Adaptation to change).
CASE SCENARIO
13. A startup began with 10 employees. As sales boomed, they needed to add more departments and managerial levels to handle the increased product lines. Organizing facilitates this through:
A) Benefits of specialization
B) Expansion and growth
C) Clarity in working relationships
D) Effective administration
Correct Answer: B) Expansion and growth.
Analysis: Organizing allows a business enterprise to scale up its operations and add new job positions easily.
Analysis: Organizing allows a business enterprise to scale up its operations and add new job positions easily.
TRICKY QUESTION
14. Assignment of duties must be matched with:
A) The employee's seniority only
B) The nature of work and the capabilities/skills of the individual
C) The physical strength of the employee
D) The salary expected by the employee
Correct Answer: B) The nature of work and the capabilities/skills of the individual.
CBSE BOARD 2024
15. "Who will report to whom" is clarified in which step of the organizing process?
A) Identification of work
B) Departmentalization
C) Assignment of duties
D) Establishing reporting relationships
Correct Answer: D) Establishing reporting relationships.
ASSERTION-REASON
16. Assertion (A): Organizing leads to optimum utilization of human resources.
Reason (R): The proper assignment of jobs ensures that there is no overlapping of activities and no resources are wasted.
Reason (R): The proper assignment of jobs ensures that there is no overlapping of activities and no resources are wasted.
A) Both (A) and (R) are true and (R) is the correct explanation.
B) Both (A) and (R) are true but (R) is NOT the explanation.
C) (A) is true, but (R) is false.
D) (A) is false, but (R) is true.
Correct Answer: A) Both (A) and (R) are true and (R) is the correct explanation.
CBSE SAMPLE PAPER 2025
17. Without this function, the plans developed by top management would remain merely on paper.
A) Controlling
B) Directing
C) Organizing
D) Staffing
Correct Answer: C) Organizing.
Board Tip: Organizing translates plans into reality by assembling the required resources.
Board Tip: Organizing translates plans into reality by assembling the required resources.
COMPETENCY BASED
18. A school principal groups the English, Hindi, and Sanskrit teachers under the "Languages Department." This is an example of:
A) Division of work
B) Departmentalization
C) Assignment of duties
D) Delegation
Correct Answer: B) Departmentalization.
Analysis: Grouping activities of a similar nature under one specific head.
Analysis: Grouping activities of a similar nature under one specific head.
PREDICTIVE
19. Organizing establishes a working relationship between:
A) Only physical resources
B) Only financial resources
C) Physical, financial, and human resources
D) Competitors and suppliers
Correct Answer: C) Physical, financial, and human resources.
CBSE BOARD 2023
20. The creation of a hierarchical structure in an organization is primarily the outcome of which step?
A) Identification of work
B) Departmentalization
C) Assignment of duties
D) Establishing reporting relationships
Correct Answer: D) Establishing reporting relationships.
Logic: Deciding who reports to whom inherently creates a chain of command (hierarchy).
Logic: Deciding who reports to whom inherently creates a chain of command (hierarchy).
CASE SCENARIO
21. At 'Fresh Bakes Ltd.', the whole task of bread-making is divided into mixing, baking, and packaging. Each worker is assigned only one specific task based on their skill. Over time, the bakers have become exceptionally fast and error-free. This highlights:
A) Expansion and growth
B) Benefits of specialization
C) Adaptation to change
D) Clarity in working relationships
Correct Answer: B) Benefits of specialization.
TRICKY QUESTION
22. Which of the following is NOT an importance of organizing?
A) Effective administration
B) Optimum utilization of resources
C) Providing a basis for control
D) Adaptation to change
Correct Answer: C) Providing a basis for control.
Board Tip: Providing the basis/standards for control is the importance of *Planning*, not Organizing.
Board Tip: Providing the basis/standards for control is the importance of *Planning*, not Organizing.
CBSE BOARD 2020
23. Grouping of jobs into departments is essential because it facilitates:
A) Competition among workers
B) Chaos and confusion
C) Coordination and control
D) Increase in raw material cost
Correct Answer: C) Coordination and control.
ASSERTION-REASON
24. Assertion (A): Delegation is a key aspect of organizing that develops personnel.
Reason (R): When a manager delegates work, it gives subordinates a chance to realize their potential and develop their skills for higher positions.
Reason (R): When a manager delegates work, it gives subordinates a chance to realize their potential and develop their skills for higher positions.
A) Both (A) and (R) are true and (R) is the correct explanation.
B) Both (A) and (R) are true but (R) is NOT the explanation.
C) (A) is true, but (R) is false.
D) (A) is false, but (R) is true.
Correct Answer: A) Both (A) and (R) are true and (R) is the correct explanation.
FINAL MASTER QUESTION
25. Arrange the following steps of the organizing process in the correct order:
(i) Assignment of duties
(ii) Establishing reporting relationships
(iii) Identification and division of work
(iv) Departmentalization
(i) Assignment of duties
(ii) Establishing reporting relationships
(iii) Identification and division of work
(iv) Departmentalization
A) (iii), (i), (iv), (ii)
B) (iii), (iv), (i), (ii)
C) (iv), (iii), (i), (ii)
D) (i), (iii), (iv), (ii)
Correct Answer: B) (iii), (iv), (i), (ii).
Final Analysis: This sequence is heavily tested! First divide the work, group it into departments, assign duties to individuals, and finally clarify who they report to.
Final Analysis: This sequence is heavily tested! First divide the work, group it into departments, assign duties to individuals, and finally clarify who they report to.
CBSE BOARD 2024
26. The framework within which managerial and operating tasks are performed is known as:
A) Span of Management
B) Organizational Structure
C) Informal Organization
D) Hierarchy of Authority
Correct Answer: B) Organizational Structure.
Board Tip: This is the exact textbook definition. It specifies the relationships between people, work, and resources.
Board Tip: This is the exact textbook definition. It specifies the relationships between people, work, and resources.
PREDICTIVE
27. 'Span of Management' refers to:
A) The number of subordinates that can be effectively managed by a superior
B) The total number of managers in an organization
C) The length of time a manager stays in the company
D) The geographical area covered by a business
Correct Answer: A) The number of subordinates that can be effectively managed by a superior.
Note: The span of management determines the shape of the organizational structure (tall or flat).
Note: The span of management determines the shape of the organizational structure (tall or flat).
COMPETENCY BASED
28. 'SunRise Ltd.' manufactures only one product: Solar Panels. The company has grouped its activities into Production, Marketing, Finance, and HR departments. Which type of structure is this?
A) Divisional Structure
B) Functional Structure
C) Informal Structure
D) Matrix Structure
Correct Answer: B) Functional Structure.
Logic: When jobs of a similar nature (functions) are grouped together under one department, it is a functional structure. It is ideal for single-product companies.
Logic: When jobs of a similar nature (functions) are grouped together under one department, it is a functional structure. It is ideal for single-product companies.
CBSE BOARD 2023
29. Which organizational structure is based on 'Product Specialization'?
A) Functional Structure
B) Divisional Structure
C) Formal Structure
D) Informal Structure
Correct Answer: B) Divisional Structure.
Board Tip: Functional = Occupational specialization. Divisional = Product specialization.
Board Tip: Functional = Occupational specialization. Divisional = Product specialization.
ASSERTION-REASON
30. Assertion (A): Functional structure makes training of employees easier.
Reason (R): Employees are trained in a limited range of skills specific to their department (e.g., a finance employee only learns finance).
Reason (R): Employees are trained in a limited range of skills specific to their department (e.g., a finance employee only learns finance).
A) Both (A) and (R) are true and (R) is the correct explanation.
B) Both (A) and (R) are true but (R) is NOT the explanation.
C) (A) is true, but (R) is false.
D) (A) is false, but (R) is true.
Correct Answer: A) Both (A) and (R) are true and (R) is the correct explanation.
CASE SCENARIO
31. 'Pioneer Group' manufactures Footwear, Cosmetics, and Garments. They have separate heads for each of these three product categories, and each head looks after their own production, marketing, and finance. Which structure is Pioneer Group following?
A) Functional Structure
B) Divisional Structure
C) Geographical Structure
D) Network Structure
Correct Answer: B) Divisional Structure.
Analysis: An organization divided into separate business units or divisions based on distinct products uses a divisional structure.
Analysis: An organization divided into separate business units or divisions based on distinct products uses a divisional structure.
CBSE SAMPLE PAPER 2025
32. In which structure is it easier to fix responsibility for poor performance, as each unit operates as a 'profit center'?
A) Functional Structure
B) Divisional Structure
C) Informal Structure
D) Centralized Structure
Correct Answer: B) Divisional Structure.
Note: If the 'Cosmetics' division is losing money, the head of Cosmetics is held directly accountable. In a functional structure, departments often blame each other.
Note: If the 'Cosmetics' division is losing money, the head of Cosmetics is held directly accountable. In a functional structure, departments often blame each other.
TRICKY QUESTION
33. Which structure leads to the duplication of activities and resources, thereby increasing costs?
A) Functional Structure
B) Divisional Structure
C) Both A and B
D) Neither A nor B
Correct Answer: B) Divisional Structure.
Logic: In a divisional structure, every product division has its own separate Marketing, Finance, and HR departments, leading to duplicated costs.
Logic: In a divisional structure, every product division has its own separate Marketing, Finance, and HR departments, leading to duplicated costs.
CBSE BOARD 2022
34. A major disadvantage of the Functional Structure is the creation of 'Functional Empires'. What does this mean?
A) Departments become too large to manage
B) Department heads give more importance to their departmental goals than organizational goals
C) Managers start demanding higher salaries
D) It leads to product specialization
Correct Answer: B) Department heads give more importance to their departmental goals than organizational goals.
COMPETENCY BASED
35. A company is expanding its operations from manufacturing just 'Washing Machines' to now producing 'Refrigerators' and 'Air Conditioners'. What change in organizational structure should the management adopt?
A) Shift from Divisional to Functional
B) Shift from Functional to Divisional
C) Shift from Formal to Informal
D) Maintain the Functional Structure
Correct Answer: B) Shift from Functional to Divisional.
Analysis: As a company grows from a single product to multiple major product lines, a divisional structure becomes necessary for better control.
Analysis: As a company grows from a single product to multiple major product lines, a divisional structure becomes necessary for better control.
CBSE BOARD 2021
36. Which of the following is NOT an advantage of Functional Structure?
A) It leads to occupational specialization
B) It promotes control and coordination within a department
C) It helps in training employees easily
D) It develops general managers who can handle all functions
Correct Answer: D) It develops general managers who can handle all functions.
Note: Functional structure develops *specialists* (e.g., just marketing). Divisional structure develops *general managers* because a division head oversees all functions for their product.
Note: Functional structure develops *specialists* (e.g., just marketing). Divisional structure develops *general managers* because a division head oversees all functions for their product.
ASSERTION-REASON
37. Assertion (A): Divisional structure promotes flexibility and initiative.
Reason (R): Each division functions as an autonomous unit, which leads to faster decision-making.
Reason (R): Each division functions as an autonomous unit, which leads to faster decision-making.
A) Both (A) and (R) are true and (R) is the correct explanation.
B) Both (A) and (R) are true but (R) is NOT the explanation.
C) (A) is true, but (R) is false.
D) (A) is false, but (R) is true.
Correct Answer: A) Both (A) and (R) are true and (R) is the correct explanation.
PREDICTIVE
38. A narrow span of management results in a __________ organizational structure.
A) Flat
B) Tall
C) Decentralized
D) Divisional
Correct Answer: B) Tall.
Logic: If a manager can only control 3 subordinates, you need more levels of managers to manage a large workforce, creating a 'tall' hierarchy.
Logic: If a manager can only control 3 subordinates, you need more levels of managers to manage a large workforce, creating a 'tall' hierarchy.
CASE SCENARIO
39. The Marketing Manager of 'Alpha Ltd.' is constantly arguing with the Production Manager. Marketing wants to offer customized products to clients, but Production refuses because it slows down the manufacturing process. This conflict of interest is a typical disadvantage of:
A) Divisional Structure
B) Functional Structure
C) Informal Organization
D) Decentralization
Correct Answer: B) Functional Structure.
Analysis: Inter-departmental conflicts arise when departments have incompatible goals or lack coordination.
Analysis: Inter-departmental conflicts arise when departments have incompatible goals or lack coordination.
CBSE BOARD 2024
40. Which structure is suitable for an enterprise which is large in size, has a diversified line of products, and operations require a high degree of specialization?
A) Functional Structure
B) Divisional Structure
C) Both are equally suitable
D) Informal Structure
Correct Answer: B) Divisional Structure.
Board Tip: The key phrase is "diversified line of products" (multiple products).
Board Tip: The key phrase is "diversified line of products" (multiple products).
TRICKY QUESTION
41. In a Divisional Structure, what type of structure exists *inside* each specific product division?
A) Another Divisional Structure
B) A Functional Structure
C) No structure at all
D) Only an informal structure
Correct Answer: B) A Functional Structure.
Logic: E.g., The 'Cosmetics' division will internally have its own Production, Marketing, and Finance departments (which is functional).
Logic: E.g., The 'Cosmetics' division will internally have its own Production, Marketing, and Finance departments (which is functional).
CBSE SAMPLE PAPER 2025
42. Functional structure leads to minimal duplication of effort. This results in:
A) Higher costs
B) Economies of scale and lower costs
C) Faster decision making across the company
D) Better product specialization
Correct Answer: B) Economies of scale and lower costs.
ASSERTION-REASON
43. Assertion (A): Coordination is easier in a divisional structure compared to a multiproduct functional structure.
Reason (R): In a divisional structure, all functions related to a particular product are integrated under one department head.
Reason (R): In a divisional structure, all functions related to a particular product are integrated under one department head.
A) Both (A) and (R) are true and (R) is the correct explanation.
B) Both (A) and (R) are true but (R) is NOT the explanation.
C) (A) is true, but (R) is false.
D) (A) is false, but (R) is true.
Correct Answer: A) Both (A) and (R) are true and (R) is the correct explanation.
COMPETENCY BASED
44. A company produces only bicycles. Due to high demand, they expanded their factory size and hired 500 more workers, but they still only produce bicycles. Which structure should they use?
A) Functional Structure
B) Divisional Structure
C) Shift from Functional to Divisional
D) Informal Structure
Correct Answer: A) Functional Structure.
Analysis: Even though the company grew in size, it still produces a *single product*. Therefore, Functional remains the best fit.
Analysis: Even though the company grew in size, it still produces a *single product*. Therefore, Functional remains the best fit.
CBSE BOARD 2023
45. Which of the following is a disadvantage of the Divisional Structure?
A) It is inflexible
B) It ignores organizational objectives
C) Conflict may arise among different divisions regarding allocation of funds
D) It makes fixing responsibility difficult
Correct Answer: C) Conflict may arise among different divisions regarding allocation of funds.
PREDICTIVE
46. Which structure provides a logical framework for assigning responsibilities in a single-product manufacturing company?
A) Functional Structure
B) Divisional Structure
C) Matrix Structure
D) Network Structure
Correct Answer: A) Functional Structure.
CASE SCENARIO
47. Mr. Sharma is the head of the 'Plastics' division at a large conglomerate. He has total authority over all operations related to plastics and is solely responsible for its profits or losses. This setup helps Mr. Sharma develop into a:
A) Functional Specialist
B) General Manager
C) Operational worker
D) Staffing expert
Correct Answer: B) General Manager.
Logic: Because he handles production, sales, and finance for his specific product, he gains multi-functional (general) management experience.
Logic: Because he handles production, sales, and finance for his specific product, he gains multi-functional (general) management experience.
TRICKY QUESTION
48. A wide span of management leads to a flat organizational structure. This generally promotes:
A) Stricter, closer supervision of employees
B) More levels of communication
C) Better delegation and faster communication
D) Centralization of authority
Correct Answer: C) Better delegation and faster communication.
Board Tip: Fewer levels mean messages travel faster from top to bottom, and managers must delegate more because they oversee many people.
Board Tip: Fewer levels mean messages travel faster from top to bottom, and managers must delegate more because they oversee many people.
CBSE BOARD 2021
49. Under which structure does each department head report directly to the coordinating head (like the CEO), focusing entirely on their specific occupational task?
A) Divisional Structure
B) Functional Structure
C) Informal Structure
D) Both A and B
Correct Answer: B) Functional Structure.
FINAL MASTER QUESTION
50. Match the key identifying terms with their respective organizational structures:
(i) Product Specialization
(ii) Occupational Specialization
(iii) Suitable for single product
(iv) Multi-product companies
(i) Product Specialization
(ii) Occupational Specialization
(iii) Suitable for single product
(iv) Multi-product companies
A) Functional: (i) & (iii) | Divisional: (ii) & (iv)
B) Functional: (ii) & (iii) | Divisional: (i) & (iv)
C) Functional: (i) & (iv) | Divisional: (ii) & (iii)
D) Functional: (ii) & (iv) | Divisional: (i) & (iii)
Correct Answer: B) Functional: (ii) & (iii) | Divisional: (i) & (iv).
Final Analysis: This covers the absolute core differences you must memorize for case study identification.
Final Analysis: This covers the absolute core differences you must memorize for case study identification.
CBSE BOARD 2024
51. The organizational structure which is deliberately created by the management to achieve organizational goals is called:
A) Informal Organization
B) Formal Organization
C) Divisional Structure
D) Matrix Organization
Correct Answer: B) Formal Organization.
Board Tip: The keyword is "deliberately created". It has officially defined boundaries, rules, and responsibilities.
Board Tip: The keyword is "deliberately created". It has officially defined boundaries, rules, and responsibilities.
PREDICTIVE
52. An informal organization emerges automatically within the formal organization because of:
A) Strict rules and regulations
B) Personal and social interactions among employees
C) Orders from the top management
D) The geographical layout of the factory
Correct Answer: B) Personal and social interactions among employees.
Note: People working together naturally form social groups, friendships, and cliques outside their official roles.
Note: People working together naturally form social groups, friendships, and cliques outside their official roles.
COMPETENCY BASED
53. Workers from the production, finance, and marketing departments regularly meet during their lunch break to play chess and discuss company news. This group is an example of:
A) Formal Organization
B) Departmentalization
C) Informal Organization
D) Matrix Structure
Correct Answer: C) Informal Organization.
Analysis: It cuts across formal departmental lines and is based on common interests (chess/lunch) rather than official duties.
Analysis: It cuts across formal departmental lines and is based on common interests (chess/lunch) rather than official duties.
CBSE BOARD 2023
54. Which of the following is a major advantage of an Informal Organization?
A) It establishes clear lines of authority
B) It provides faster spread of information and rapid feedback
C) It makes fixing responsibility easier
D) It ensures strict discipline among employees
Correct Answer: B) It provides faster spread of information and rapid feedback.
Logic: The informal communication network (Grapevine) does not follow the scalar chain, so news travels incredibly fast.
Logic: The informal communication network (Grapevine) does not follow the scalar chain, so news travels incredibly fast.
ASSERTION-REASON
55. Assertion (A): The management can completely eliminate the informal organization if it causes rumors.
Reason (R): Informal organization is born out of the formal organization.
Reason (R): Informal organization is born out of the formal organization.
A) Both (A) and (R) are true and (R) is the correct explanation.
B) Both (A) and (R) are true but (R) is NOT the explanation.
C) (A) is true, but (R) is false.
D) (A) is false, but (R) is true.
Correct Answer: D) (A) is false, but (R) is true.
Logic: Management cannot eliminate the informal organization because humans will always socialize. They must learn to manage and utilize it instead.
Logic: Management cannot eliminate the informal organization because humans will always socialize. They must learn to manage and utilize it instead.
CBSE SAMPLE PAPER 2025
56. The process of entrusting responsibility and authority to subordinates and creating accountability for those who are entrusted with these tasks is called:
A) Centralization
B) Delegation
C) Departmentalization
D) Division of work
Correct Answer: B) Delegation.
Board Tip: Delegation involves three distinct elements: Authority, Responsibility, and Accountability.
Board Tip: Delegation involves three distinct elements: Authority, Responsibility, and Accountability.
TRICKY QUESTION
57. 'Authority' in the context of delegation refers to:
A) The obligation of a subordinate to properly perform the assigned duty
B) The answerability for the final outcome
C) The right of an individual to command his subordinates and take action within the scope of his position
D) The physical power to force an employee to work
Correct Answer: C) The right of an individual to command his subordinates and take action within the scope of his position.
CBSE BOARD 2022
58. Which element of delegation flows upwards (from subordinate to superior)?
A) Authority
B) Accountability
C) Responsibility
D) Both B and C
Correct Answer: D) Both B and C.
Logic: Authority flows downwards. You are responsible and accountable *to* your boss (upwards).
Logic: Authority flows downwards. You are responsible and accountable *to* your boss (upwards).
CASE SCENARIO
59. The Sales Manager assigned the task of selling 1,000 units to the Sales Executive and granted him the power to offer up to a 10% discount to customers. Which two elements of delegation are seen here?
A) Authority and Accountability
B) Responsibility and Authority
C) Accountability and Responsibility
D) Centralization and Decentralization
Correct Answer: B) Responsibility and Authority.
Analysis: "Task of selling" = Responsibility. "Power to offer discount" = Authority.
Analysis: "Task of selling" = Responsibility. "Power to offer discount" = Authority.
PREDICTIVE
60. The principle of 'Absolute Accountability' states that:
A) A manager is not accountable if he has delegated the task to a subordinate
B) Accountability can be delegated completely
C) A manager remains accountable to his superiors for the tasks he has delegated to his subordinates
D) Subordinates are never accountable
Correct Answer: C) A manager remains accountable to his superiors for the tasks he has delegated to his subordinates.
Board Tip: Accountability cannot be delegated. If your team fails, *you* answer to the boss.
Board Tip: Accountability cannot be delegated. If your team fails, *you* answer to the boss.
CBSE BOARD 2021
61. For delegation to be effective, it is essential that responsibility be accompanied by an equal amount of:
A) Salary
B) Manpower
C) Authority
D) Promotions
Correct Answer: C) Authority.
Note: Parity between Authority and Responsibility is crucial. Authority > Responsibility = Misuse. Responsibility > Authority = Ineffectiveness.
Note: Parity between Authority and Responsibility is crucial. Authority > Responsibility = Misuse. Responsibility > Authority = Ineffectiveness.
ASSERTION-REASON
62. Assertion (A): Delegation does not mean abdication.
Reason (R): The manager shall still be accountable for the performance of the assigned tasks.
Reason (R): The manager shall still be accountable for the performance of the assigned tasks.
A) Both (A) and (R) are true and (R) is the correct explanation.
B) Both (A) and (R) are true but (R) is NOT the explanation.
C) (A) is true, but (R) is false.
D) (A) is false, but (R) is true.
Correct Answer: A) Both (A) and (R) are true and (R) is the correct explanation.
COMPETENCY BASED
63. A supervisor asks a worker to operate a heavy machine to complete a pending order but does not give him the keys to the warehouse where the safety gear is kept. The worker fails to complete the order. Why did delegation fail here?
A) The worker was accountable
B) Responsibility was more than the Authority given
C) Authority was more than the Responsibility given
D) It was an informal organization
Correct Answer: B) Responsibility was more than the Authority given.
Analysis: The worker was given the obligation (responsibility) to work, but not the power (authority) to access the required tools.
Analysis: The worker was given the obligation (responsibility) to work, but not the power (authority) to access the required tools.
CBSE BOARD 2024
64. Which of the following arises from a formal position in the organization?
A) Responsibility
B) Authority
C) Accountability
D) Grapevine
Correct Answer: B) Authority.
Logic: The higher you are in the scalar chain (formal position), the more authority you have.
Logic: The higher you are in the scalar chain (formal position), the more authority you have.
TRICKY QUESTION
65. Is a manager allowed to delegate his ENTIRE authority to a subordinate?
A) Yes, to reduce his workload
B) Yes, if the subordinate is highly skilled
C) No, only a part of the authority can be delegated
D) No, authority cannot be delegated at all
Correct Answer: C) No, only a part of the authority can be delegated.
Board Tip: A manager multiplies himself by delegating a *part* of his work and authority, but retains the core managerial authority.
Board Tip: A manager multiplies himself by delegating a *part* of his work and authority, but retains the core managerial authority.
CASE SCENARIO
66. The CEO of a company is furious because the production target was missed. The Production Manager blames the Supervisor, saying "I delegated the task to him, so ask him." Is the Production Manager correct?
A) Yes, because delegation transfers accountability
B) No, because accountability cannot be delegated and he must answer to the CEO
C) Yes, because the supervisor holds the authority now
D) No, because the CEO is ultimately accountable for production
Correct Answer: B) No, because accountability cannot be delegated and he must answer to the CEO.
CBSE SAMPLE PAPER 2025
67. Delegation helps in the 'Development of Personnel' because:
A) It increases the salary of subordinates
B) It allows subordinates to make decisions, tackle complex tasks, and gain experience
C) It reduces the working hours of employees
D) It forces employees to leave the informal organization
Correct Answer: B) It allows subordinates to make decisions, tackle complex tasks, and gain experience.
PREDICTIVE
68. The "Grapevine" is a characteristic of which type of organization?
A) Formal Organization
B) Divisional Structure
C) Functional Structure
D) Informal Organization
Correct Answer: D) Informal Organization.
Note: Grapevine refers to the unofficial communication channels that form naturally among employees.
Note: Grapevine refers to the unofficial communication channels that form naturally among employees.
COMPETENCY BASED
69. A major disadvantage of the Formal Organization is:
A) It spreads rumors quickly
B) It may lead to procedural delays due to the scalar chain
C) It makes fixing responsibility impossible
D) It opposes the goals of the management
Correct Answer: B) It may lead to procedural delays due to the scalar chain.
Analysis: Every communication has to go through official channels, which slows down decision making.
Analysis: Every communication has to go through official channels, which slows down decision making.
CBSE BOARD 2023
70. Which of the following elements is defined as the 'obligation of a subordinate to properly perform the assigned duty'?
A) Authority
B) Responsibility
C) Accountability
D) Span of control
Correct Answer: B) Responsibility.
ASSERTION-REASON
71. Assertion (A): Informal organization resists changes and new policies.
Reason (R): The informal group conforms to its own group norms and may oppose changes that threaten their social structure.
Reason (R): The informal group conforms to its own group norms and may oppose changes that threaten their social structure.
A) Both (A) and (R) are true and (R) is the correct explanation.
B) Both (A) and (R) are true but (R) is NOT the explanation.
C) (A) is true, but (R) is false.
D) (A) is false, but (R) is true.
Correct Answer: A) Both (A) and (R) are true and (R) is the correct explanation.
TRICKY QUESTION
72. Can 'Responsibility' be delegated?
A) Yes, entirely
B) Yes, but only partially
C) No, it is absolute and cannot be delegated at all
D) It flows downwards, so it is never delegated
Correct Answer: B) Yes, but only partially.
Logic: A manager can delegate some responsibility to a subordinate, but he still retains a portion of it. Only Accountability is absolutely non-delegable.
Logic: A manager can delegate some responsibility to a subordinate, but he still retains a portion of it. Only Accountability is absolutely non-delegable.
CBSE BOARD 2022
73. The primary purpose of delegation is to:
A) Avoid responsibility
B) Empower top management
C) Lessen the burden of the manager
D) Create an informal organization
Correct Answer: C) Lessen the burden of the manager.
Board Tip: This is the core reason delegation exists—so managers can focus on high-priority tasks.
Board Tip: This is the core reason delegation exists—so managers can focus on high-priority tasks.
CASE SCENARIO
74. While assigning work, a manager tells a clerk to handle data entry but tells his assistant manager to lead a new marketing project. The delegation here is acting as a basis of:
A) Management hierarchy
B) Informal communication
C) Departmentalization
D) Centralization
Correct Answer: A) Management hierarchy.
Analysis: Delegation creates the superior-subordinate relationship, which is the foundation of the management hierarchy.
Analysis: Delegation creates the superior-subordinate relationship, which is the foundation of the management hierarchy.
FINAL MASTER QUESTION
75. Match the Elements of Delegation with their Core Features:
(i) Authority
(ii) Responsibility
(iii) Accountability
With:
(a) Cannot be entirely delegated
(b) Cannot be delegated at all
(c) Can be delegated
(i) Authority
(ii) Responsibility
(iii) Accountability
With:
(a) Cannot be entirely delegated
(b) Cannot be delegated at all
(c) Can be delegated
A) (i)-(c), (ii)-(a), (iii)-(b)
B) (i)-(b), (ii)-(c), (iii)-(a)
C) (i)-(a), (ii)-(b), (iii)-(c)
D) (i)-(c), (ii)-(b), (iii)-(a)
Correct Answer: A) (i)-(c), (ii)-(a), (iii)-(b).
Final Analysis: Authority = Delegated. Responsibility = Partially Delegated. Accountability = NEVER Delegated.
Final Analysis: Authority = Delegated. Responsibility = Partially Delegated. Accountability = NEVER Delegated.
CBSE BOARD 2024
76. The systematic dispersal of authority to the lowest levels of management is known as:
A) Delegation
B) Centralization
C) Departmentalization
D) Decentralization
Correct Answer: D) Decentralization.
Board Tip: Delegation is usually between two people (manager to subordinate). Decentralization is a company-wide policy affecting all levels.
Board Tip: Delegation is usually between two people (manager to subordinate). Decentralization is a company-wide policy affecting all levels.
PREDICTIVE
77. Which of the following is a COMPULSORY act in any organization, because no single manager can do all the work alone?
A) Decentralization
B) Delegation
C) Divisional Structure
D) Informal Organization
Correct Answer: B) Delegation.
Logic: Delegation is a necessity for survival. Decentralization is an optional policy decision made by top management.
Logic: Delegation is a necessity for survival. Decentralization is an optional policy decision made by top management.
COMPETENCY BASED
78. The CEO of 'MegaMart Ltd.' decided to give full autonomy to the branch managers across India to decide their own marketing budgets and promotional offers based on local festivals. This is an example of:
A) Centralization
B) Delegation
C) Decentralization
D) Functional Structure
Correct Answer: C) Decentralization.
Analysis: Pushing decision-making power down to the regional/branch level across the organization is the hallmark of decentralization.
Analysis: Pushing decision-making power down to the regional/branch level across the organization is the hallmark of decentralization.
CBSE BOARD 2023
79. "Decentralization is an extension of _________."
A) Centralization
B) Departmentalization
C) Delegation
D) Span of management
Correct Answer: C) Delegation.
Note: When we multiply delegation by hundreds of employees across all levels, it becomes decentralization.
Note: When we multiply delegation by hundreds of employees across all levels, it becomes decentralization.
ASSERTION-REASON
80. Assertion (A): An organization can never be completely decentralized.
Reason (R): Complete decentralization would mean giving all authority to lower levels, which implies top management would have no control, leading to the disintegration of the organization.
Reason (R): Complete decentralization would mean giving all authority to lower levels, which implies top management would have no control, leading to the disintegration of the organization.
A) Both (A) and (R) are true and (R) is the correct explanation.
B) Both (A) and (R) are true but (R) is NOT the explanation.
C) (A) is true, but (R) is false.
D) (A) is false, but (R) is true.
Correct Answer: A) Both (A) and (R) are true and (R) is the correct explanation.
Logic: There must always be a balance between centralization (retaining core control) and decentralization (granting operational freedom).
Logic: There must always be a balance between centralization (retaining core control) and decentralization (granting operational freedom).
TRICKY QUESTION
81. While Delegation lessens the burden of a manager, Decentralization:
A) Increases the burden on top management
B) Provides relief to top management and develops future managers
C) Removes the need for lower-level management
D) Replaces the formal organization with an informal one
Correct Answer: B) Provides relief to top management and develops future managers.
CBSE SAMPLE PAPER 2025
82. Which of the following highlights the 'Scope' of Delegation and Decentralization?
A) Delegation has a narrow scope; Decentralization has a wide scope
B) Delegation has a wide scope; Decentralization has a narrow scope
C) Both have an equal, wide scope
D) Both have an equal, narrow scope
Correct Answer: A) Delegation has a narrow scope; Decentralization has a wide scope.
CASE SCENARIO
83. In 'TechFast Corp.', any decision regarding purchasing new software worth over ₹5,000 had to be approved by the CEO in Delhi. This caused massive delays. The company changed its policy and allowed local IT heads to approve purchases up to ₹50,000. This change resulted in:
A) Better control by centralization
B) Quick decision making due to decentralization
C) Creation of an informal organization
D) Increase in the span of management
Correct Answer: B) Quick decision making due to decentralization.
Analysis: By pushing decision-making power down to local heads, they eliminated the delay of the scalar chain.
Analysis: By pushing decision-making power down to local heads, they eliminated the delay of the scalar chain.
CBSE BOARD 2022
84. The concentration of decision-making authority at the top level of management is called:
A) Delegation
B) Decentralization
C) Centralization
D) Departmentalization
Correct Answer: C) Centralization.
COMPETENCY BASED
85. If a manager delegates a task, is he totally free from responsibility?
A) Yes, the subordinate takes 100% of the blame if things go wrong.
B) No, the manager retains ultimate accountability for the final outcome.
C) Yes, because delegation transfers accountability completely.
D) No, because authority was not delegated.
Correct Answer: B) No, the manager retains ultimate accountability for the final outcome.
Board Tip: This is the Principle of Absolute Accountability. You can delegate work, but you cannot delegate the final answerability.
Board Tip: This is the Principle of Absolute Accountability. You can delegate work, but you cannot delegate the final answerability.
CBSE BOARD 2021
86. Decentralization develops initiative among subordinates because:
A) It increases their salary
B) It forces them to follow strict rules
C) It promotes self-reliance and confidence by allowing them to take decisions
D) It keeps them in the informal organization
Correct Answer: C) It promotes self-reliance and confidence by allowing them to take decisions.
TRICKY QUESTION
87. A _________ structure is suitable for an organization producing a single product, whereas a _________ structure is suitable for an organization producing multiple products.
A) Divisional, Functional
B) Formal, Informal
C) Functional, Divisional
D) Centralized, Decentralized
Correct Answer: C) Functional, Divisional.
ASSERTION-REASON
88. Assertion (A): Delegation is a process, whereas Decentralization is the end result.
Reason (R): Decentralization is the result of the policy of delegating authority systematically throughout the organization.
Reason (R): Decentralization is the result of the policy of delegating authority systematically throughout the organization.
A) Both (A) and (R) are true and (R) is the correct explanation.
B) Both (A) and (R) are true but (R) is NOT the explanation.
C) (A) is true, but (R) is false.
D) (A) is false, but (R) is true.
Correct Answer: A) Both (A) and (R) are true and (R) is the correct explanation.
CBSE BOARD 2024
89. Which of the following is an element of Delegation?
A) Authority
B) Responsibility
C) Accountability
D) All of the above
Correct Answer: D) All of the above.
CASE SCENARIO
90. A school principal realizes that he is spending too much time approving minor student leave requests, leaving him no time for academic planning. He allows the class teachers to approve leaves up to 2 days. This is an application of:
A) Centralization
B) Span of management
C) Delegation
D) Departmentalization
Correct Answer: C) Delegation.
Analysis: He transferred a routine task and the necessary authority to his immediate subordinates to lessen his own burden.
Analysis: He transferred a routine task and the necessary authority to his immediate subordinates to lessen his own burden.
PREDICTIVE
91. Which network of social relationships arises spontaneously due to interaction at work?
A) Formal Organization
B) Informal Organization
C) Functional Structure
D) Divisional Structure
Correct Answer: B) Informal Organization.
CBSE SAMPLE PAPER 2025
92. The creation of 'Profit Centers' is a feature of which organizational structure?
A) Functional Structure
B) Formal Organization
C) Divisional Structure
D) Informal Organization
Correct Answer: C) Divisional Structure.
Note: Each product division generates its own revenue and costs, making it easy to calculate its specific profit or loss.
Note: Each product division generates its own revenue and costs, making it easy to calculate its specific profit or loss.
COMPETENCY BASED
93. In a highly centralized organization, where does the maximum authority reside?
A) With the operational workers
B) With the middle management
C) With the top-level management
D) Spread equally across all levels
Correct Answer: C) With the top-level management.
TRICKY QUESTION
94. Authority flows _________, Responsibility flows _________, and Accountability flows _________.
A) Downward, Upward, Upward
B) Upward, Downward, Upward
C) Downward, Downward, Upward
D) Upward, Upward, Downward
Correct Answer: A) Downward, Upward, Upward.
Board Tip: A boss grants power *down* to a junior. The junior is responsible and answerable *up* to the boss.
Board Tip: A boss grants power *down* to a junior. The junior is responsible and answerable *up* to the boss.
CBSE BOARD 2023
95. "It facilitates evaluation of performance of different divisions easily." This statement is an advantage of:
A) Functional Structure
B) Divisional Structure
C) Centralization
D) Delegation
Correct Answer: B) Divisional Structure.
ASSERTION-REASON
96. Assertion (A): Informal organization leads to faster spread of information.
Reason (R): Information in an informal organization travels through the prescribed scalar chain.
Reason (R): Information in an informal organization travels through the prescribed scalar chain.
A) Both (A) and (R) are true and (R) is the correct explanation.
B) Both (A) and (R) are true but (R) is NOT the explanation.
C) (A) is true, but (R) is false.
D) (A) is false, but (R) is true.
Correct Answer: C) (A) is true, but (R) is false.
Logic: Information travels fast *because* it ignores the scalar chain and cuts across all levels.
Logic: Information travels fast *because* it ignores the scalar chain and cuts across all levels.
CBSE BOARD 2021
97. Organizing ensures that all individuals and departments are working towards:
A) Personal goals
B) Departmental rivalries
C) Common organizational goals
D) Informal group objectives
Correct Answer: C) Common organizational goals.
CASE SCENARIO
98. A newly appointed manager realizes his span of control is 25 subordinates. Because the work is highly complex, he is unable to manage them effectively. What should he do?
A) Fire half the subordinates
B) Delegate some authority and create a middle layer of supervisors
C) Centralize all power completely
D) Shift to a divisional structure
Correct Answer: B) Delegate some authority and create a middle layer of supervisors.
Analysis: When the span of management is too wide for complex tasks, adding hierarchy via delegation solves the issue.
Analysis: When the span of management is too wide for complex tasks, adding hierarchy via delegation solves the issue.
PREDICTIVE
99. Which of the following limits the scope of Decentralization?
A) Highly competent lower-level managers
B) A desire by top management to retain strict control
C) Fast-changing business environments
D) Geographical dispersion of branches
Correct Answer: B) A desire by top management to retain strict control.
Note: If top bosses refuse to let go of power, decentralization cannot happen.
Note: If top bosses refuse to let go of power, decentralization cannot happen.
FINAL MASTER QUESTION
100. Match the Following Core Concepts:
(i) Freedom of Action to lower levels
(ii) Number of subordinates a manager can handle
(iii) Transfer of authority to a subordinate
With:
(a) Span of Management
(b) Decentralization
(c) Delegation
(i) Freedom of Action to lower levels
(ii) Number of subordinates a manager can handle
(iii) Transfer of authority to a subordinate
With:
(a) Span of Management
(b) Decentralization
(c) Delegation
A) (i)-(b), (ii)-(a), (iii)-(c)
B) (i)-(c), (ii)-(a), (iii)-(b)
C) (i)-(b), (ii)-(c), (iii)-(a)
D) (i)-(a), (ii)-(b), (iii)-(c)
Correct Answer: A) (i)-(b), (ii)-(a), (iii)-(c).
Final Analysis: This covers the three most frequently tested definitions in the entire Organizing chapter.
Final Analysis: This covers the three most frequently tested definitions in the entire Organizing chapter.
🏆
Chapter 5 Mastered!
Outstanding! You have successfully completed all 100 MCQs for Organizing.
Understanding Structure and Delegation is key to securing top marks in your Board Exams.
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