Advertisements
Advertisements
Question
'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.
Advertisements
Solution
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:-
- A socially responsible corporation
- An employee-centric organisation
APPEARS IN
RELATED QUESTIONS
Name the type of 'organisational structure' which promotes efficiency in utilisation of manpower.
Name the type of organisational structure which promotes flexibility and initiative.
Differentiate between formal and informal organisation on the basis of origin.
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:
Flow of communication
How does informal organisation support the formal organisation?
Neha runs a factory wherein she manufactures shoes. The business has been doing well and she intends to expand by diversifying into leather bags as well as western formal wear thereby making her company a complete provider of corporate wear. This will enable her to market her business unit as the one stop for working women. Which type of structure would you recommend for her expanded organisation and why?
Which of the following does not follow the scalar chain?
Span of management refers to ____________.
Grouping of activities on the basis of functions is a part of ____________.
Which type of organisational structure will you suggest for a firm which has diversified activities and operations requiring a high degree of specialisation?
______ 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.
Which of the following is true regarding Organisational Structure?
Which of the following is a disadvantage of divisional structure?
______ is the process of dividing work into manageable activities and then grouping the activities which are similar in nature.
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.
Which type of organisation structure is discussed in the above case?
Which of the following is an advantage of functional structure :
| 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.
