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Question
Differentiate between formal and informal organization on the basis of the following:
Nature
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Solution
| Basis for Difference |
Formal Organisation | Informal Organisation |
| Nature | Completely rigid. | More flexible. |
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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.
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Differentiate between formal and informal organization on the basis of the following:
Authority
The differential between 'Functional and 'Divisional' structure of organising on the basis of the following:
Meaning
A differential between 'Functional and 'Divisional' structure of organising on the basis of the following:
Responsibility
A differential between 'Functional and 'Divisional' structure of organising on the basis of the following:
Cost involved
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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.
Differentiate between the functional organization and divisional organization
A network of social relationships that arises spontaneously due to interaction at work is called:
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Identify the type of organization structure depicted in the above diagram:
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