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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

Name the type of 'organisational structure' which promotes efficiency in utilisation of manpower.


'Steelo Ltd.' decided to set-up its steel manufacturing factory in the backward area of Orissa where very less job opportunities were available. People of that area welcomed this effort of 'Steelo Ltd.' To attract people to work in its factory it also decided to provide many other facilities like school. hospital. market etc. in the factory premises. 'Steelo Ltd.' started earning huge profits. Another competing company asked its production manager 'Aslam' to investigate the reasons of earning huge profits by 'Steelo Ltd.' Aslam found that in both the companies there was systematic coordination 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 whereas 'Steelo 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 feedback.

a. Identify the type of organisation which permits 'Steelo Ltd.' the flow of communication in all the directions.
b. State another advantage of the type of organisation identified in (a) above.
c. State any two values which 'Steelo Ltd.' wanted 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 origin


Differentiate between formal and informal organization on the following basis:

Behaviour


Identify the network of social relationships which arises spontaneously due to interaction at work.


Draw a diagram depicting a functional structure. 


How does informal organisation support the formal organisation?


Which of the following is not the disadvantage of the formal organisation?


Which of the following does not follow the scalar chain?


Which of the following is not a merit 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.

Which of the following gives shape to the organisation structure?


______ is the process of dividing work into manageable activities and then grouping the activities which are similar in nature.


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?


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.

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.

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.

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


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