Advertisements
Advertisements
Questions
State any two advantages of Formal Organisation
State any Four advantages of Formal Organisation
State any one advantage of Formal Organisation.
State any three advantages of Formal Organisation.
Explain the advantages and limitations of formal organisation.
Advertisements
Solution 1
Advantages of a formal organisation:
- In a formal organisation, responsibility can be easily fixed as job roles are clearly defined.
- A formal organisation avoids duplication and wastage of resources in the sense that there is no confusion among employees regarding assigned duties
- The superior-subordinate relationship is clearly defined in the formal organisation. Thus, the unity of command is maintained.
- All the departments in the formal organisation work together so as to achieve the organisational goal. In this way, it results in coordinating the activities of various departments.
Solution 2
Formal organisation offers the following advantages:
- Clarity: Each member's function and responsibilities are clear. This prevents effort from being duplicated.
- Responsibility: It is easy to fix responsibility because mutual relationships are clearly defined.
- Unity of command: Every member of the chain of command is answerable to a single superior.
- Stability: Formal organisation gives the business stability. Employees are guided by certain rules. As a result, it is reasonable to forecast their actions.
APPEARS IN
RELATED QUESTIONS
Name the type of 'organisational structure' which promotes efficiency in utilisation of manpower.
What is meant by the divisional structure of an organisation?
State its any two advantages of the divisional structure
Define organization as a structure.
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.
Write a short note on: Formal organisation.
Write five features of an informal business organisation.
Which of the following is not the disadvantage of the formal organisation?
Grouping of activities on the basis of product lines is a part of ______.
It is defined as the framework within which managerial and operating tasks are performed.
It refers to the number of subordinates that can be effectively managed by a superior:
As the span of management increases in an organisation, the number of levels of management in the organisation:
Uranus Limited is a company dealing in metal products. The work is mainly divided into functions including production, purchase, marketing, accounts and personnel. Identify the type of organisational structure followed by the organisation.
A network of social relationship that arise spontaneously due to interaction at work is called :
Which of the following does not follow the scalar chain?
Which type of organisational structures is the most suitable for those business enterprises where a large variety of products are manufactured?
Which of the following gives shape to the organisation structure?
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?
| 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.
