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

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प्रश्न

Differentiate between formal and informal organization on the following basis:

Behaviour

उत्तर

Basis for
Difference
Formal Organisation Informal Organisation
Behaviour Complete control on the behaviour of employees as it is decided by managers. No control on the behaviour of
employees as managers will not interfere with the behaviour of employees unless it results in a negative impact on the organisation.

 

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2013-2014 (March) Foreign Set 1

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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.


'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


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

Meaning


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

Responsibility


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

Cost involved


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


A company manufacturing sewing machines set up in 1945 by the British promoters follows formal organisation culture in totality. It is facing lot of problems in delays in decision making. As the result it is not able to adapt to changing business environment. The work force is also not motivated since they cannot vent their grievances except through formal channels, which involve red tape. Employee turnover is high. Its market share is also declining due to changed circumstances and business environment. You are to advise the company with regard to change it should bring about in its organisation structure to overcome the problems faced by it. Give reasons in terms of benefits it will derive from the changes suggested by you.


Span of management refers to ____________.


Uranus Limited is a company dealing in metal products. The work is mainly divided into functions including production, purchase, marketing, accounts and personnel. Identify the type of organisational structure followed by 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?


A network of social relationship that arise spontaneously due to interaction at work is called :


Span of management refers to


Grouping of activities on the basis of functions is a part of


Which type of organisational structures is the most suitable when the size of the organisation is large and is producing one line of product?


Which of the following gives shape to the organisation structure:


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 the 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 a 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.

Recession is an 'inherent constraint' in almost all manufacturing organisations.


______ organisations are formed spontaneously as a result of social interaction among employees in an organisation.


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