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Differentiate Between Formal and Informal Organization on the Basis of the Following: Meaning - Business Studies

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प्रश्न

Differentiate between formal and informal organization on the basis of the following:

Meaning

उत्तर

Basis for
Difference
Formal Organisation Informal Organisation
Meaning Organisational structure which is designed by the management to accomplish a particular task. It specifies the boundaries of authority and responsibility and there is a systematic
coordination to achieve organisational goals
Interaction among people at work gives rise to a network of social relationships among employees. It emerges from within the formal organisation when people interact beyond their officially defined roles.
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2013-2014 (March) All India Set 1

वीडियो ट्यूटोरियलVIEW ALL [1]

संबंधित प्रश्न

'My Car Ltd.' decided to set-up its new car manufacturing factory in the backward area of West Bengal where very less job opportunities were available. People of that area welcomed this effort of 'My Car Ltd.' The company also decided to provide facilities like school, hospital, market etc. in the factory premises so that the people are attracted to join the factory as workers.

'My Car Ltd.' started earning huge profit. Another competeting company asked its production manager 'Arvind' to investigate the reasons of earning huge profits by 'My Car Ltd.'

Arvind found that in both the companies there was systematic co-ordination among the various activities to achieve organisational goals. Every employee knew who was responsible and accountable to whom. The only difference was that in his organisation communication took place only through the scalar chain, where as 'My Car Ltd.' was allowing flow of communication in all the directions as per the requirement which lead to faster spread of information as well as quick feed-back.

a. Identify the type of organisation which permits the flow of communication in all the directions in 'My Car Ltd.'

b. Also state an advantage of the type of organisation identified in part (a) above.

c. State any two values which 'My Car Ltd.' wants to communicate to the society.


The differential between 'Functional and 'Divisional' structure of organising on the basis of the following:

Meaning


Identify the network of social relationships which arises spontaneously due to interaction at work.


What does the term ‘Span of management’ refer to?


State any two circumstances under which the functional structure will prove to be an appropriate choice.


What is a divisional structure? Discuss its advantages and  limitations.


How is a functional structure different from a divisional  structure?


Write a short note on: Formal organisation.


Which of the following is not the disadvantage of the formal organisation?


A network of social relationships that arises spontaneously due to interaction at work is called:


As the span of management increases in an organisation, the number of levels of management in the organisation:


Which type of organisational structure will you suggest for a firm which has diversified activities and operations requiring a high degree of specialisation?


Span of management refers to


Which of the following points highlight the suitability of functional structure?


Read the following text and answer the questions given below:

'Pappu Sweets Makers' is a sweets making company which has turnover in crores. In order to manage the work in the organisation, the departments have been created on the basis of functions. Examine the following situations of this organisation and give answers accordingly :

Situation 1: It is expected that employees who are performing similar tasks work under the same department. So the company now has HR, Marketing and Finance departments. The division is based on specific functions.

Situation 2: There are similarities in the tasks performed within the same department.

Situation 3: The profit is increasing month by month due to the success of this structure of the organisation.

Situation 4: There has been minimum duplication of efforts as the same department is taking care of single function.

What will be the result of Situation 4?


Which statement is correct regarding division of work:


Which of the following is an advantage of functional structure :


An organization structure is deliberately designed by the top management to facilitate smooth functioning of the organisation. Which of the following is not a feature of such a structure?


Due to spread of COVID-19 pandemic, employees of almost all the companies were working online from their homes. In 2022 when most of the companies called them back to their office and started working offline, ‘Taty Software Ltd.’ still asked their employees to work from home. Because of this, employees of “Taty Software Ltd.” were feeling bored, hence for recreation they formed a cricket-club. They started meeting every Saturday and Sunday on a ground near their office building.
  1. Identify and state the type of organisation formed by the employees of 'taty Software Ltd.
  2. Also, state any two advantages and two limitations of the type of organisation identified in (i) above.

Diligent developers, a website design company in Bangalore is a startup initiative of Mr. Maniraj which aims at achieving a profit margin of 10% in its first year. Mr. Maniraj appointed Mr. Advait as the Digital marketing Head, Mr. Kiyansh as the head of Backend department and Mr. Nirved headed the Graphics Designing Department. Since each head was specialised in specific skills, it resulted in increased efficiency and better coordination. However, problems arose when Mr. Advait started considering group objectives superior to organisational objectives and stopped exchanging information with Mr. Kiyansh and Mr. Nirved. The company had to bear the brunt of lack of coordination and was unable to achieve its objectives.
  1. Identify and state the organisational structure adopted by the company.
  2. State two benefits and two limitations of the identified structure highlighted in the above case.

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