Advertisements
Advertisements
Question
Differentiate between formal and informal organisations on the basis of authority
Advertisements
Solution
| Basis | Formal organisation | Informal organisation |
| Authority | It is based on hierarchical structure. | It is based on personal qualities of members. |
APPEARS IN
RELATED QUESTIONS
State it's any two advantages of the functional structure
Differentiate between formal and informal organization on the basis of the following:
Flow of communication
Draw a diagram depicting a functional structure.
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?
How does informal organisation support the formal organisation?
A company X limited manufacturing cosmetics, which has enjoyed a pre-eminent position in business, has grown in size. Its business was very good till 1991. But after that, new liberalised environment has seen entry of many MNC’s in the sector. With the result the market share of X limited has declined. The company had followed a very centralized business model with Directors and divisional heads making even minor decisions. Before 1991 this business model had served the company very well as consumers had no choice. But now the company is under pressure to reform. What organisation structure changes should the company bring about in order to retain its market share? How will the changes suggested by you help the firm? Keep in mind that the sector in which the company is FMCG.
Write a short note on: Formal organisation.
Which of the following is not the disadvantage of the formal organisation?
Span of management refers to ____________.
It refers to the number of subordinates that can be effectively managed by a superior:
Which of the following is not a merit of divisional structure?
Which type of organisational structure will you suggest for a firm which has diversified activities and operations requiring a high degree of specialisation?
The employees of ABC co. have formed a Dramatics club for their recreation. Name the type of organisation formed by the and state one of the features of such an organisation.
The form of organisation known for giving rise to rumours is called
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 of the following is true regarding Organisational 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.
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?
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:
