Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Nature and significance of Management

Question:

Read the following passage and answer the following questions.

XYZ Ltd has the business of manufacturing clothes for children under the age of 8. For the successful completion of the goal of manufacturing of 100,000 clothes in 45 days, all the activities of the company are divided accordingly. A group of 5 friends named (Biti, Niti, Piti, Siti, Miti) is working in that company but their work is not the same. Every individual is responsible for successful completion of a particular task. The authority-responsibility relationship binds them as superiors and subordinates.

* Biti performed the function of analyzing the business environment and its implications on the company.
* Niti's job is to intepret the policies framed by Piti.
* Siti has to make sure that the workers have safe and proper working conditions for the work.
* Miti is the chairman of the company.

'Niti's job is to interpet the policies framed by Piti.

At which level Niti is performing this function?

Options:

Top level

Middle level

Lower level

None of these

Correct Answer:

Middle level

Explanation:

The correct answer is option 2- Middle level.

'Niti's job is to interpret the policies framed by Piti' means Niti is subordinate of Piti and working at middle level.

Middle Management is the link between top and lower level managers. They are subordinate to top managers and superior to the first line managers. They are usually known as division heads, for example production manager. Middle management is responsible for implementing and controlling plans and strategies developed by top management. At the same time they are responsible for all the activities of first line managers. Their main task is to carry out the plans formulated by the top managers.