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State any two advantages of Formal Organisation - Business Studies

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प्रश्न

State any two advantages of Formal Organisation

State any Four advantages of Formal Organisation

State any one advantage of Formal Organisation.

State any three advantages of Formal Organisation.

Explain the advantages and limitations of formal organisation.

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उत्तर १

Advantages of a formal organisation:

  1. In a formal organisation, responsibility can be easily fixed as job roles are clearly defined.
  2. A formal organisation avoids duplication and wastage of resources in the sense that there is no confusion among employees regarding assigned duties
  3. The superior-subordinate relationship is clearly defined in the formal organisation. Thus, the unity of command is maintained.
  4. All the departments in the formal organisation work together so as to achieve the organisational goal. In this way, it results in coordinating the activities of various departments.
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उत्तर २

Formal organisation offers the following advantages:

  1. Clarity: Each member's function and responsibilities are clear. This prevents effort from being duplicated.
  2. Responsibility: It is easy to fix responsibility because mutual relationships are clearly defined.
  3. Unity of command: Every member of the chain of command is answerable to a single superior.
  4. Stability: Formal organisation gives the business stability. Employees are guided by certain rules. As a result, it is reasonable to forecast their actions.
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अध्याय 9: Organising - QUESTION BANK [पृष्ठ २७६]

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संबंधित प्रश्न

'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


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


'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


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

Authority


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


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


State any two circumstances under which the functional structure will prove to be an appropriate choice.


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


Span of management refers to


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


Which type of organisational structures is the most suitable for those business enterprises where a large variety of products are manufactured?


______ 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?


Which of the following gives shape to the organisation structure:


Identify the type of organization structure depicted in the above diagram:


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 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.

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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