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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. - Business Studies

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प्रश्न

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.

संक्षेप में उत्तर
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उत्तर

  1. Beyond the restrictions of formal structure, management should encourage employees to engage and socialise with one another through gatherings and outings. This allows everyone to interact and brings like-minded people closer together, resulting in a more delighted staff.
  2. Management should also develop staff recommendation systems to implement and recognise good ideas. Communication lines should be kept open in order to promote a sense of belonging within the firm.
  3. Management should attempt to distribute the organisational structure.
  4. Textile machinery, such as embroidery, sequencing, and buttoning machines, is indicated as an area for business diversification.

The company will benefit from the following changes:

If informal connections are encouraged, employee's social needs will be met more effectively. This will increase their job satisfaction and offer them a sense of belonging within the business. Quick decision-making will also occur since prescribed lines of communication will not be followed, and faster dissemination of information will provide prompt feedback. Implementing employee suggestion systems will enhance motivation for employees who offer good proposals. This will also help reduce workforce turnover. Implementing decentralisation will also help.

All of the preceding will aid in achieving organisational goals and eliminating the shortcomings of formal structure.

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अध्याय 5: Organising - Long Answer [पृष्ठ १४०]

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एनसीईआरटी Business Studies Part I Principles and Functions of Management [English] Class 12
अध्याय 5 Organising
Long Answer | Q 7 | पृष्ठ १४०

वीडियो ट्यूटोरियलVIEW ALL [1]

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.


Name the organizational structure which helps in increasing managerial and operational efficiency.


Differentiate between formal and informal organisations on the basis of  authority


State any two disadvantage functional structure of an organisation


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

Authority


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

Nature


company has its registered office in Delhi, manufacturing  unit at Gurgaon and marketing and sales department at  Faridabad. The company manufactures the consumer  products. Which type of organisational structure should it adopt to achieve its target?


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.


Answer the following question.
Voltage fluctuations have been common and quite high in India. They harm our electrical appliances like televisions, refrigerators, and air conditioners, often leaving them in a permanently damaged condition. N-Guard Company decided to manufacture stabilizers for North India where the voltage fluctuation ranges from 220 V to 230 V. Once the demand for North India was taken care of, they decided to launch stabilizers of varying voltages from 90 V – 260 V for meeting the requirements of voltage fluctuations in other regions of India also. Three engineers were appointed for South, West and East regions of India, as the voltage was different in all the three regions.

Though all the engineers were appointed to manufacture stabilizers but the product differed from region to region.

(a) Identify the organisational structure of the N-Guard Company.

(b) State any two advantages and two limitations of the structure identified in the above para.


As the span of management increases in an organisation, the number of levels of management in the organisation:


Under this type of organisational structure, manpower is grouped on the basis of different products manufactured.


Which of the following is not a merit of divisional structure?


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


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


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?


Which statement is correct regarding division of work:


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  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.

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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