CAIIB · Advanced Business & Financial Management · Module A — The Management Process
CAIIB ABFM Unit 3 — Organising: Free MCQs with Explanations
By Swarnakshi Jha (ex-banker) · Updated 29 October 2026 · Paper III of the December 2026 cycle (Sunday 13 December 2026)
This is the free practice page for CAIIB ABFM Unit 3 — Organising (Module A — The Management Process). The CAIIB Mock Centre holds 181 questions on this unit alone, every one with a why-right / why-wrong explanation; below are the facts examiners keep returning to, five practice questions with explanations, and the traps that cost marks.
ABFM · Module A181 MCQs in the Mock Centre5 free belowPaper on 13 December
Key facts examiners test from this unit
Fundamentals, importance and process of organising — organising, the second function after planning, assigns and groups tasks, gives authority with responsibility and allocates resources; its product is the organisation.
Principles of organising — principles guide how work is split and authority assigned: specialise, give legitimate authority, keep one boss and a clear chain, delegate, and set a sensible span.
Types of organisations — by flow of authority, organisations are centralised or decentralised, line and staff, functional or committee, each with its own trade-offs.
Changed since the textbook
RBI consolidates governance rules into the Commercial Banks – Governance Directions, 2025 (28 November 2025). As part of its consolidation of regulatory instructions, RBI issued the Reserve Bank of India (Commercial Banks – Governance) Directions, 2025 (RBI/DOR/2025-26/149), applicable to public sector, private sector and foreign banks with category-specific provisions. They bring together the governance instructions, including the Board committees (such as Audit, Risk Management, Nomination and Remuneration, and IT Strategy) and tenure limits for senior management. Source: Reserve Bank of India (Commercial Banks – Governance) Directions, 2025
One State, One RRB: 26 regional rural banks amalgamated (1 May 2025). Under section 23A(1) of the Regional Rural Banks Act, 1976, the Government notified on 7 April 2025 the amalgamation of 26 RRBs in 11 states and one Union Territory, effective 1 May 2025, reducing the number of RRBs from 43 to 28, with over 22,000 branches in about 700 districts. It was the fourth phase of RRB consolidation, which began in 2006 when there were 196 RRBs. Source: Business Standard
5 free practice questions — tap an option
Five practice questions from this unit. Answers lock on the first tap, exactly as in the exam, and an explanation opens underneath. The Mock Centre has all 181 questions on this unit, from easy to tough, with caselets and key-in numericals, why every other option is wrong and the exam tip — and tracks your score and revision dates.
Question 1 of 5
After grouping activities and delegating authority, which stage completes the organising process?
Why (d): The fifth stage is designing a hierarchy of relationships, analysing vertical and horizontal links and drawing them in charts. (a) is wrong: Grouping is the third stage. (b) is wrong: Determining activities is the second stage. (c) is wrong: Reviewing plans is the first stage.
Question 2 of 5
A wide span of control means that:
Why (a): The textbook says a wide span means a high number of people reporting to one manager, which affords greater independence. (b) is wrong: That describes a narrow span. (c) is wrong: Wide spans give fewer levels, not more. (d) is wrong: One report is the narrowest possible span.
Question 3 of 5
Which of these arrangements in a bank shows centralisation?
Why (d): Centralisation means keeping the right to make decisions at the top, and sending every loan above ₹5 lakh to head office does exactly that. Delegating sanctioning powers to branches, or letting regions and zones run their own campaigns and recruitment, spreads decision-making: decentralisation. (a) is wrong: Delegated sanctioning powers spread decisions downward. (b) is wrong: Regional campaigns are decentralised decisions. (c) is wrong: Zonal recruitment is decentralised.
Question 4 of 5
Kurt Lewin's change model has three phases:
Why (d): Lewin's model consists of three phases: unfreeze, change and refreeze. (a) is wrong: Those are the general steps of change management. (b) is wrong: Those are Bridges' stages. (c) is wrong: Those are the first three ADKAR outcomes.
Question 5 of 5
Lewin illustrated his model of change using:
Why (c): The textbook says Lewin used the change of a block of ice from solid to liquid and back to illustrate structural or organisational change. (a) is wrong: The puzzle is the textbook's analogy for MBO goals. (b) is wrong: Eight steps belong to Kotter. (d) is wrong: The iceberg is not Lewin's illustration.
0 of 5 answered.
Traps in this unit
The organisation is the result of organising.
Product grouping is divisional, not functional.
Narrow spans need more managers and more levels.
Practise all 181 questions on Unit 3. The free CAIIB demo opens Units 1–2 of every paper with full explanations; the ABFM Online Mock Centre unlocks all 4,000+ ABFM questions, the full-length papers with caselets and key-ins, module mocks and Smart Revision for 18 months (₹1,499).
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