Business Management MCQ Questions and Solutions with Explanations | Management

Steps to be taken for selecting sales persons is an example of procedures. Procedures explain how to accomplish a task. A procedure is sometimes called a work instruction.

Piece Rate System is contributed by Taylor, the father of scientific management. The underlying principle of this system is to penalise a slow worker by paying him a low piece rate for low production and to reward an efficient worker by giving him a higher piece rate for a higher production.

An identified group of people contributing their efforts towards the attainment of goals is called an organization. An organization or organisation is an entity comprising multiple people, such as an institution or an association, that has a particular purpose.

Allotment of work to each worker on the basis of the capacity of an average worker functioning in the normal working condition is scientific task planning. Scientific task setting Standard task is the quantity of work which an average worker can perform under ideal standardised conditions in one day, generally called 'a fair day's work', which for every worker should be fixed after a scientific study.

A system of co-operative activities of two or more persons is called organization. An organization or organisation is an entity comprising multiple people, such as an institution or an association, that has a particular purpose.

A study relating to the fixing of the working hours with rest periods to recoup the energy while performing in job is called fatigue study. Fatigue study is study to understand how fatigue affects productivity.

Formal authority flows from upwards to downwards in formal organization. Formal Organization is an organisation in which job of each member is clearly defined, whose authority, responsibility and accountability are fixed. Informal Organization is formed within the formal organisation as a network of interpersonal relationship when people interact with each other.

The first and foremost function of management is planning. Planning is the primary function of management. Its purpose is to ensure optimum utilisation of human and economic resources in the business processes. It precedes all other activities of the business undertaking.

Which organisational relationship gives a greater job satisfaction and results in maximum production?

Option B: informal organization

Explanation:

An informal organization refers to the social structure that develops within a formal organization as employees interact with each other. This informal network often leads to greater job satisfaction and higher productivity because it fosters camaraderie, mutual support, and effective communication among employees.

A formal organization (Option A) refers to the official structure of roles, responsibilities, and reporting relationships defined by the organization's hierarchy. While important for clarity and structure, formal organizations may not always maximize job satisfaction and production as effectively as informal relationships.

Business or organisation (Option C) and strategic organization (Option D) are not recognized terms in organizational theory in the context provided.

Therefore, the correct answer is informal organization.

Long term planning is 5 to 15 years. A long-term planning is about setting a process by which a particular strategic plan will be achieved. This process focuses on activities that start now and continue well into the future.