Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Principles of Management

Question:

Which of the following statement is incorrect?

Options:

Discipline is the obedience to organisational rules and employment agreement

Authority is the right to give orders and obtain obedience

Division of work is dividing the work into small tasks and assigning them to trained specialist

Large organisations need more centralisation

Correct Answer:

Large organisations need more centralisation

Explanation:

The correct answer is option (4) : Large organisations need more centralisation

* Discipline is the obedience to organisational rules and employment agreement- This is correct. Discipline is the obedience to organisational rules and employment agreement which are necessary for the working of the organisation. According to Fayol, discipline requires good superiors at all levels, clear and fair agreements and judicious application of penalties.

* Authority is the right to give orders and obtain obedience- This is correct. Authority comes from a person's position or role within a social structure which gives him right to give orders to subordinates.

* Division of work is dividing the work into small tasks and assigning them to trained- This is correct.  Work is divided into small tasks/ jobs. A trained specialist who is competent is required to perform each job. Thus, division of work leads to specialisation. According to Fayol, "The intent of division of work is to produce more and better work for the same effort. Specialisation is the most efficient way to use human effort."

* Large organisations need more centralisation- This is incorrect because in large organizations, the need for centralization or decentralization depends on various factors, including the nature of the organization, its objectives, industry, and the specific circumstances it faces. While some large organizations may benefit from a degree of centralization to ensure consistency and control, others may find that decentralization is more effective in addressing their needs. The choice between centralization and decentralization should be made based on the organization's unique requirements and goals, rather than assuming that larger organizations inherently require more centralization.