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Question
Differentiate between formal and informal organization on the basis of the following:
Meaning
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Solution
| Basis for Difference |
Formal Organisation | Informal Organisation |
| Meaning | Organisational structure which is designed by the management to accomplish a particular task. It specifies the boundaries of authority and responsibility and there is a systematic coordination to achieve organisational goals |
Interaction among people at work gives rise to a network of social relationships among employees. It emerges from within the formal organisation when people interact beyond their officially defined roles. |
RELATED QUESTIONS
‘Panda Trucks Ltd.’ decided to set-up its new truck manufacturing factory in the backward area of Bihar where very less job opportunities were available. People of that area welcomed this effort of ‘Panda Trucks 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.
‘Panda Trucks Ltd.’ started earning huge profits. Another competiting company asked its production manager ‘Sanjay’ to investigate the reasons of earning huge profits by ‘Panda Trucks Ltd’. Sanjay found out that in both the companies there was systematic co-ordination among the various activities to achieve organizational goals. Every employee knew who was responsible and accountable to whom. The only difference was that in his
organization communication took place only through the scalar chain, whereas ‘Panda Trucks 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 organization which permits ‘Panda Trucks Ltd.’ the flow of communication in all the directions.
b. State an advantage of the type of organization identified in (a) above.
c. State any two values which ‘Panda Trucks Ltd.’ wanted to communicate to the society.
Answer the following question:
Aradhana and Gandharv are heads of two different departments in 'Yumco Ltd.' 'They are efficient managers and are able to motivate the employee of their respective departments to improve performance. However, their drive to excel in their own sphere of activity instead of giving emphasis on objectives of the enterprise has hindered the interaction between the departments that Aradhana and Gandharv are heading. Often there are inter-departmental conflicts and they have become incompatible. This has proved to be harmful in the fulfillment of the organisational objectives. The situation has deteriorated to such an extent that the CEO of 'Yumco Ltd.' has hired a consultant, Rashmi, to resolve the problem. After studying the situation closely, Rashmi found that the problem has arisen due to inflexibility and a narrow perspective on the part of both Aradhana and Gandharv. She is of the view that this situation is a result of the type of organisational structure 'Yumco Ltd.’ has adopted.
From the above information, identify the organisational structure adopted by ‘Yumco Ltd.’ and state any three advantages of the structure so identified.
Differentiate between formal and informal organisations on the basis of authority
Differentiate between formal and informal organisations on the basis of the flow of communication.
State any three limitations of divisional structure of an organisation.
State any two disadvantage functional structure of an organisation
Differentiate between formal and informal organization on the basis of the following:
Origin
A differential between 'Functional and 'Divisional' structure of organising on the basis of the following:
Specialisation
Differentiate between formal and informal organisations on the basis of
- origin,
- authority, and
- flow of communication.
Which organisation structure is consciously or deliberately established?
Which organisation structure is based on rules and procedures?
Which of the following is not the disadvantage of the formal organisation?
Which of the following does not follow the scalar chain?
Identify the type of organisational structure which makes training of employees easier, as the focus is only on a limited range of skills.
Which of the following is not true about formal organisation?
A network of social relationship that arise spontaneously due to interaction at work is called :
Which type of organisational structures is the most suitable for those business enterprises where a large variety of products are manufactured?
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 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. |
- 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.
