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'Steelo Ltd.' Decided to Set-up Its Steel Manufacturing Factory in the Backward Area of Orissa Where Very Less Job Opportunities Were Available. People of that Area Welcomed this Effort of 'Steelo Ltd.' - CBSE (Arts) Class 12 - Business Studies

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'Steelo Ltd.' decided to set-up its steel manufacturing factory in the backward area of Orissa where very less job opportunities were available. People of that area welcomed this effort of 'Steelo Ltd.' To attract people to work in its factory it also decided to provide many other facilities like school. hospital. market etc. in the factory premises. 'Steelo Ltd.' started earning huge profits. Another competing company asked its production manager 'Aslam' to investigate the reasons of earning huge profits by 'Steelo Ltd.' Aslam found that in both the companies there was systematic coordination 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 whereas 'Steelo 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 feedback.

a. Identify the type of organisation which permits 'Steelo Ltd.' the flow of communication in all the directions.
b. State another advantage of the type of organisation identified in (a) above.
c. State any two values which 'Steelo Ltd.' wanted to communicate to the society

Solution

a. ‘Informal Organisation’ allows 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 the employees.

c. ‘Steelo Ltd.’ wanted to communicate following two values of the organisation:
i. Socially responsible corporation
ii. Employee-centric organisation

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Solution 'Steelo Ltd.' Decided to Set-up Its Steel Manufacturing Factory in the Backward Area of Orissa Where Very Less Job Opportunities Were Available. People of that Area Welcomed this Effort of 'Steelo Ltd.' Concept: Structure of Organisation.
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