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'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.' - Business Studies

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'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.

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a. In the given case, ‘Informal Organisation’ allows the communication to flow in all directions.

b. Another advantage of informal organisation is that it allows employees to feel sociable, interactive and competitive. This results in better employee engagement and work culture. All these factors result in better productivity for the organisation by employees.

c. ‘My Car Ltd.’ wanted to communicate the following two values to the organisation:-

  1. A socially responsible corporation
  2. An employee-centric organisation
Concept: Structure of Organisation
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