Question
Q.InfoMed Ltd. is a growing IT firm which is rapidly increasing its market share. It has recently been awarded 'The Best Organisation to Work in India - 2019' and is in great demand among job-seekers. In this company, the top management has clearly determined the rules and procedures to be followed by employees. There is no ambiguity in the role that each member has to play, since duties have been specified. At lunch break, all employees of the organisation gather together in the canteen. This time is much awaited by every employee since it gives them an opportunity to share their feelings with others. This leads to the success of the organisation.
(a) Identify and explain the types of organisation discussed in the above situation.
(b) State two advantages of each type of the organisation identified in
(a) above which have not been discussed in the above paragraph.
(OR)
'Good Looks Ltd.' are the manufacturers of cosmetics. The company was enjoying a pre-established position in the business and had grown in size. Till recently the company had been doing good business; but after the entry of competitors the market share of 'Good Looks Ltd.' has declined. One reason for this is that all decisions are taken by the higher management. This has resulted in the concentration of the decision-making process at the apex of the management hierarchy. Worried about the decline in market share and profit, the company appointed 'Structures Consultants India Ltd.' as a consultant to suggest improvements in the organisation's decision-making process. The consultant suggested that decision-making responsibilities should be divided among hierarchical levels. They said that if decision-making authority is shared with the lowest levels and consequently placed near the point of action, it would help in quick decision-making and this would help the company adapt to dynamic operating conditions. They said that dispersal of authority propagates the belief that people are competent, capable and resourceful and can assume the responsibility of effective implementation of their decisions.
(a) Identify the concept on the basis of which 'Structures Consultants India Ltd.' gave their suggestions to 'Good Looks Ltd.'.
(b) Explain any four points of importance of the concept identified in
(a) above.
CBSECBSE Class XII Board 2020Subjective· 6mImportance★★★★★
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Start your 14-day free trial to unlock the full solution →InfoMed shows both formal organisation (clear rules) and informal organisation (spontaneous social bonding). (OR: Good Looks Ltd. is advised to decentralise decision-making authority.)
- Identifying the organisation types: InfoMed Ltd. exhibits both types simultaneously. Its Formal Organisation is visible in how top management has clearly laid down the rules and procedures every employee must follow, with duties precisely specified so there is no ambiguity about anyone's role — the deliberately designed structure through which the organisation's goals are pursued. Its Informal Organisation emerges spontaneously from the daily lunch-break gathering, where employees interact socially and share their feelings — a network of personal relationships that arises naturally out of people working together, rather than being consciously designed by management.
- Two further advantages of each, not already discussed:
- Formal organisation: it helps in fixing clear responsibility, since each person's role is defined, so accountability for any lapse can be traced; and it prevents duplication of effort, since work is systematically divided so two people are not doing the same job. …
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