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State the features of 'Formal Organisation'. - Business Studies

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प्रश्न

State the features of 'Formal Organisation'.

State any five features of formal organization.

लघु उत्तर
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उत्तर १

Features of formal organisation:

  1. There is the specification of authority in formal organisation. That is, a relationship between various job positions is clearly defined.
  2. It provides the ways to achieve the organisational objective by clearly defining the procedures and rules to be followed.
  3. Formal organisation interlinks and coordinates the efforts of various departments in the organisation.
  4. It is deliberately created by the management so that organisation can work smoothly.
  5. The formal organisation emphasises more on work to be done instead of interpersonal relationships
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उत्तर २

  1. A formal organisation has a well-defined structure, with each employee assigned a specific position and authority.
  2. It operates according to pre-established norms, policies, and processes to ensure consistency.
  3. It establishes a scalar chain of communication in the organisation.
  4. There is a clear separation of authority and responsibility to ensure accountability.
  5. It results in the creation of superior-subordinate relations.
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पाठ 9: Organising - QUESTION BANK [पृष्ठ २७३]

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सी. बी. गुप्ता Commerce Volume 2 [English] Class 12 ISC
पाठ 9 Organising
QUESTION BANK | Q 6. b | पृष्ठ २७३

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संबंधित प्रश्‍न

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


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

Formation


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.


Differentiate between the functional organization and divisional organization


Write five features of an informal business organisation.


Differentiate between formal and informal organisations on the basis of

  1. origin,
  2. authority, and
  3. flow of communication.

A network of social relationships that arises spontaneously due to interaction at work is called:


Uranus Limited is a company dealing in metal products. The work is mainly divided into functions including production, purchase, marketing, accounts and personnel. Identify the type of organisational structure followed by the organisation.


Which of the following does not follow the scalar chain?


Span of management refers to


The form of organisation known for giving rise to rumours is called


Span of management can be classified into which of the following categories.


Which of the following is a disadvantage of divisional structure?


______ 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. 


______ 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?


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 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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