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Questions
State the features of 'Formal Organisation'.
State any five features of formal organization.
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Solution 1
Features of formal organisation:
- There is the specification of authority in formal organisation. That is, a relationship between various job positions is clearly defined.
- It provides the ways to achieve the organisational objective by clearly defining the procedures and rules to be followed.
- Formal organisation interlinks and coordinates the efforts of various departments in the organisation.
- It is deliberately created by the management so that organisation can work smoothly.
- The formal organisation emphasises more on work to be done instead of interpersonal relationships
Solution 2
- A formal organisation has a well-defined structure, with each employee assigned a specific position and authority.
- It operates according to pre-established norms, policies, and processes to ensure consistency.
- It establishes a scalar chain of communication in the organisation.
- There is a clear separation of authority and responsibility to ensure accountability.
- It results in the creation of superior-subordinate relations.
RELATED QUESTIONS
What is meant by the divisional structure of an organisation?
State its any two advantages of the divisional structure
State any two advantages of Formal Organisation
State any three features of 'Informal Organisation'.
A differential between 'Functional and 'Divisional' structure of organising on the basis of the following:
Cost involved
How does informal organisation support the formal organisation?
What is a divisional structure? Discuss its advantages and limitations.
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.
Which organisation structure is consciously or deliberately established?
It is defined as the framework within which managerial and operating tasks are performed.
'Saarthi', the name has been associated with the manufacturing and sale of Fashion products since 1960, when Kapil Saarthi opened his first retail fashion clothing outlet in Ahmedabad. Sarthi Cosmetics was incorporated in India in 1940, and became a member of the S & M family of companies in 1959. Sarthi Perfumes began operations in Gujarat in an existing administrative S&M facility in 1985. An important difference between S&M and most other companies is that instead of operating as one large corporation it operates as 180 smaller companies each focused on a specific product and area, implying selective dispersal of authority, recognising the decision makers need four autonomy, as decision making authority is pushed down the chain of command. It enables the company to maintain short lines of communication with customers and employees, and accelerate the development of talent.
As “The decision making authority is pushed down the chain of command” at S&M enterprises, it provides the benefit of quick decision making to the organisation because ______.
Which type of organisational structures is the most suitable when the size of the organisation is large and is producing one line of product?
Which of the following is true regarding Organisational Structure?
Which of the following is an advantage of functional structure :
Which of the following gives shape to the organisation structure:
Aarohan Ltd. is a company manufacturing automobiles where division of work into key areas includes production, purchase, marketing, accounts and personnel. Which of the following is a disadvantage of the organization structure of Aarohan Ltd.?
| 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 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 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.
|
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 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 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.
______ organisations are formed spontaneously as a result of social interaction among employees in an organisation.
