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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.
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A company manufacturing sewing machines set up in 1945 by the British promoters follows formal organisation culture in totality. It is facing lot of problems in delays in decision making. As the result it is not able to adapt to changing business environment. The work force is also not motivated since they cannot vent their grievances except through formal channels, which involve red tape. Employee turnover is high. Its market share is also declining due to changed circumstances and business environment. You are to advise the company with regard to change it should bring about in its organisation structure to overcome the problems faced by it. Give reasons in terms of benefits it will derive from the changes suggested by you.
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Voltage fluctuations have been common and quite high in India. They harm our electrical appliances like televisions, refrigerators, and air conditioners, often leaving them in a permanently damaged condition. N-Guard Company decided to manufacture stabilizers for North India where the voltage fluctuation ranges from 220 V to 230 V. Once the demand for North India was taken care of, they decided to launch stabilizers of varying voltages from 90 V – 260 V for meeting the requirements of voltage fluctuations in other regions of India also. Three engineers were appointed for South, West and East regions of India, as the voltage was different in all the three regions.
Though all the engineers were appointed to manufacture stabilizers but the product differed from region to region.
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(b) State any two advantages and two limitations of the structure identified in the above para.
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______ 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.
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| Due to spread of COVID-19 pandemic, employees of almost all the companies were working online from their homes. In 2022 when most of the companies called them back to their office and started working offline, ‘Taty Software Ltd.’ still asked their employees to work from home. Because of this, employees of “Taty Software Ltd.” were feeling bored, hence for recreation they formed a cricket-club. They started meeting every Saturday and Sunday on a ground near their office building. |
- Identify and state the type of organisation formed by the employees of 'taty Software Ltd.
- Also, state any two advantages and two limitations of the type of organisation identified in (i) above.
