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

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प्रश्न

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

Origin

उत्तर

Basis for
Difference
Formal Organisation Informal Organisation
Origin Originates from the rules and
policies of management.
Originates from the social
interactions among employees.
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2013-2014 (March) All India Set 1

वीडियो ट्यूटोरियलVIEW ALL [1]

संबंधित प्रश्न

Name the type of 'organisational structure' which promotes efficiency in utilisation of manpower.


Differentiate between formal and informal organisations on the basis of origin


Differentiate between formal and informal organisations on the basis of the flow of communication.


What is meant by 'functional structure' of an organisation?


State any three limitations of divisional structure of an organisation.


'Himalaya Ltd', is engaged in manufacturing of washing machines. The target of the organisation is to manufacture 500 washing machines a day. There is an occupational specialisation in the organisation which promotes the efficiency of employees. There is no duplication of efforts in such type of organisation structure.

Identify the type of organisation structure described above


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


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


How is a functional structure different from a divisional  structure?


A company, which manufactures a popular brand of toys, has been enjoying good market reputation. It has a functional  organisational structure with separate departments for Production, Marketing, Finance, Human Resources and  Research and Development. Lately to use its brand name and  also to cash on to new business opportunities it is thinking  to diversify into manufacture of new range of electronic toys  for which a new market is emerging. Which organisation  structure should be adopted in this situation? Give concrete  reasons with regard to benefits the company will derive from  the steps it should take.


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


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


The employees of ABC co. have formed a Dramatics club for their recreation. Name the type of organisation formed by the and state one of the features of such an organisation.


In what way an informal structure would benefit the organization?


Which type of organisational structures is the most suitable for those business enterprises where a large variety of products are manufactured?


______ ensures that the heads of separate business units in the organisation are responsible for profit or loss of their unit and have authority over it. 


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.

Which type of organisation structure is discussed in the above case?


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.

Why do you think the profit is increasing as given in Situation 3?


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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