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How Does Informal Organisation Support the Formal Organisation? - Business Studies

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Question

How does informal organisation support the formal organisation? 

Short Note

Solution

The ways in which informal organisation support formal organisation:-

• Prescribed lines of communications are no followed. So it leads to faster spread of communication and quick feedback.

• It fulfils the social needs of the employees and maintains a good environment in the organisation. It enhances their job satisfaction and gives them a sense of belongingness in the organisation.

• It contributes to the fulfilment of the objective of the organisation by compensating for inadequacies in the formal organisation.

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Chapter 5: Organising - Short Answer [Page 139]

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RELATED QUESTIONS

'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.


Differentiate between formal and informal organisation on the basis of origin.


State any three limitations of divisional structure of an organisation.


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

Nature


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

Specialisation


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

Cost involved


How is a functional structure different from a divisional  structure?


A tall structure has a ____________.


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


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.


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


Which of the following does not follow the scalar chain?


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


What are the benefits of divisional structure?


In what way an informal structure would benefit the organization?


______ is suitable for companies who focuses on operational specialization.


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 of the following is an advantage of functional 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.

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