Advertisements
Advertisements
Question
State any two disadvantages Informal Organisation
Solution
Disadvantages of an Informal Organisation
1) Spread of rumours: Rumours arise in an informal organisation. In an informal organisation, there is free communication and interaction among employees. Such free communication may at times lead to the spread of rumours and gossip in the organisation which can adversely affect the working environment
2) Resistance to change: Changes in the organisation cannot be implemented by the management if informal organisation opposes them.
APPEARS IN
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 authority
'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
State any three features of 'Informal 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:
Managerial development
A differential between 'Functional and 'Divisional' structure of organising on the basis of the following:
Cost involved
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.
Differentiate between the functional organization and divisional organization
Write five features of an informal business organisation.
Which organisation structure does not have duplication of work?
Grouping of activities on the basis of functions is a part of ____________.
Span of management can be classified into which of the following categories.
Which of the following factors are of informal organisation that support the working of formal organization?
What are the benefits of divisional structure?
Match the STRUCTURE in an organisation in Column I with the appropriate EXPLANATION in Column II.
| Column I | Column II | ||
| (1) | Organisation Structure | (i) | Grouping activities on the basis of products |
| (2) | Functional Structure | (ii) | Framework within which managerial and operating tasks are performed. |
| (3) | Divisional structure | (iii) | Grouping of similar jobs and organizing them as separate departments. |
______ 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.
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. |
- Identify and state the organisational structure adopted by the company.
- State two benefits and two limitations of the identified structure highlighted in the above case.
