English

Differentiate Between Formal and Informal Organisations on the Basis of (I) Origin - Business Studies

Advertisements
Advertisements

Question

Differentiate between formal and informal organisations on the basis of origin

Solution

Basis Formal organisation Informal organisation
Origin It is a result of rules and policies of a company. It is a result of social interactions among

 

shaalaa.com
  Is there an error in this question or solution?
2017-2018 (March) All India Set 1

Video TutorialsVIEW ALL [1]

RELATED QUESTIONS

Answer the following question:
Aradhana and Gandharv are heads of two different departments in 'Yumco Ltd.' 'They are efficient managers and are able to motivate the employee of their respective departments to improve performance. However, their drive to excel in their own sphere of activity instead of giving emphasis on objectives of the enterprise has hindered the interaction between the departments that Aradhana and Gandharv are heading. Often there are inter-departmental conflicts and they have become incompatible. This has proved to be harmful in the fulfillment of the organisational objectives. The situation has deteriorated to such an extent that the CEO of 'Yumco Ltd.' has hired a consultant, Rashmi, to resolve the problem. After studying the situation closely, Rashmi found that the problem has arisen due to inflexibility and a narrow perspective on the part of both Aradhana and Gandharv. She is of the view that this situation is a result of the type of organisational structure 'Yumco Ltd.’ has adopted.
From the above information, identify the organisational structure adopted by ‘Yumco Ltd.’ and state any three advantages of the structure so identified.


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


State its any two advantages of the functional structure


State any three features of 'Informal Organisation'.


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


A company X limited manufacturing cosmetics, which has  enjoyed a pre-eminent position in business, has grown in  size. Its business was very good till 1991. But after that,  new liberalised environment has seen entry of many MNC’s  in the sector. With the result the market share of X limited  has declined. The company had followed a very centralized  business model with Directors and divisional heads making  even minor decisions. Before 1991 this business model had  served the company very well as consumers had no choice.  But now the company is under pressure to reform. What  organisation structure changes should the company bring  about in order to retain its market share? How will the  changes suggested by you help the firm? Keep in mind that  the sector in which the company is FMCG.


Write a short note on: Formal organisation.


Explain the principle of Esprit de corps as advocated by Henry Fayol.


Differentiate between formal and informal organisations on the basis of (i) origin, (ii) authority, and (iii) flow of communication.


In which organisation structure do we find “group norms”?


Grouping of activities on the basis of product lines is a part of ______.


'Saarthi', the name has been associated with the manufacturing and sale of Fashion products since 1960, when Kapil Saarthi opened his first retail fashion clothing outlet in Ahmedabad. Sarthi Cosmetics was incorporated in India in 1940, and became a member of the S & M family of companies in 1959. Sarthi Perfumes began operations in Gujarat in an existing administrative S&M facility in 1985. An important difference between S&M and most other companies is that instead of operating as one large corporation it operates as 180 smaller companies each focused on a specific product and area, implying selective dispersal of authority, recognising the decision makers need four autonomy, as decision making authority is pushed down the chain of command. It enables the company to maintain short lines of communication with customers and employees, and accelerate the development of talent.

As “The decision making authority is pushed down the chain of command” at S&M enterprises, it provides the benefit of quick decision making to the organisation because ______.


Which of the following does not follow the scalar chain?


The form of organisation known for giving rise to rumours is called


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 is a disadvantage of divisional structure?


The organisational structure and the composition of the board of directors, are one of the internal factors of micro environment of a business organisation.


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.

Share
Notifications

Englishहिंदीमराठी


      Forgot password?
Use app×