Advertisements
Advertisements
Questions
Differentiate between formal and informal organization on the basis of the following:
Flow of communication
Differentiate between formal organization and informal organization on any four bases.
Advertisements
Solution
| S. No. | Basis | Formal organization | Informal organization |
| 1. | Meaning | The term "formal organization" describes the hierarchy established by management. | Refers to the informal and personal relationships that exist between coworkers. |
| 2. | Origin | The management's rules and policies are the source of the structure. | The social interactions among the employees are the source of the structure. |
| 3. | Authority | The managerial posts and profile define authority. | Employees' personal characteristics define their authority. |
| 4. | Flow of communication | A communication takes places through a scalar chain. | It can take place in any direction. |
| 5. | Nature | Formal organisations are rigid. | Informal organisations are flexible. |
Notes
Students should refer to the answer according to their questions.
RELATED QUESTIONS
'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.
State the features of 'Formal Organisation'.
What does the term ‘Span of management’ refer to?
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.
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.
Write a short note on: Formal organisation.
Grouping of activities on the basis of functions is a part of ____________.
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.
Identify the type of organisational structure which facilitates occupational specialisation.
Rishabh has joined as a Creative Head in an entertainment company. He always ensures that the work has been divided into small and manageable activities and also the activities of similar nature are grouped together. Identify the related step in organising process being mentioned in the above lines.
Which of the following does not follow the scalar chain?
Which of the following factors are of informal organisation that support the working of formal organization?
In what way an informal structure would benefit the organization?
Yummy Foods Ltd. has its registered office in Lucknow, manufacturing unit in Kanpur and marketing department in Chandigarh. ______ type of organisational structure should be adopted by the company to achieve its objectives.
Which statement is correct regarding division of work:
Aarohan Ltd. is a company manufacturing automobiles where division of work into key areas includes production, purchase, marketing, accounts and personnel. Which of the following is a disadvantage of the organization structure of Aarohan Ltd.?
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. |
- 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.
