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Home/Practice questions/Business Studies
Business StudiesDirecting

_________ indicates the characteristics which describe an organisatio…

_________ indicates the characteristics which describe an organisation and distinguish it from others.

Answer & explanation+

Correct answer: option 2

The correct answer is Option (2) → Organisational Climate

  • Option (1) Status — Incorrect. Status is the rank or position of a person in the organisation. It describes a person, not the whole organisation.

  • Option (2) Organisational Climate — Correct. Organisational climate means the features that describe an organisation and make it different from others. Examples are freedom given to workers, rewards and care for employees. A good climate is a non-financial incentive.

  • Option (3) Job Security — Incorrect. Job security means the employee is sure of a stable job and income. It is about the worker, not the features of the organisation.

  • Option (4) Employee Participation — Incorrect. This means involving employees in decisions that affect them. It is one practice, not the overall character of the organisation.

NCERT (2026-27 Edition): “Organisational Climate: Organisational climate indicates the characteristics which describe an organisation and distinguish one organisation from the other. These characteristics influence the behaviour of individuals in the organisation. …”

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