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Question
Differentiate between formal and informal organisations on the basis of the flow of communication.
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Solution
| Basis | Formal organisation | Informal organisation |
| A flow of communication | It takes place through the scalar chain. | It can take place in any direction |
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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.
A network of social relationships that arises spontaneously due to interaction at work is called:
Span of management refers to ____________.
Grouping of activities on the basis of product lines is a part of ______.
The form of organisation known for giving rise to rumours is called
Grouping of activities on the basis of functions is a part of
______ is suitable for multi-product companies focusing on 'differentiated products'.
______ 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.
| Due to spread of COVID-19 pandemic, employees of almost all the companies were working online from their homes. In 2022 when most of the companies called them back to their office and started working offline, ‘Taty Software Ltd.’ still asked their employees to work from home. Because of this, employees of “Taty Software Ltd.” were feeling bored, hence for recreation they formed a cricket-club. They started meeting every Saturday and Sunday on a ground near their office building. |
- Identify and state the type of organisation formed by the employees of 'taty Software Ltd.
- Also, state any two advantages and two limitations of the type of organisation identified in (i) above.
