Organising, Formal and Informal Organisation

Organising is the management process that initiates implementation of plans by clarifying jobs and working relationships and effectively deploying resources for the achievement of organisational goals and objectives. Characteristics of organizing:
•    group of persons,
•    common objectives,
•    division of work, co-ordination,
•    authority-responsibility relationship and communication.
Steps involved in organising process:
•    identification and division of work,
•    departmentalisation,
•    assignment of duties and establishing reporting relationships.
Benefits of organizing are benefits of specilaisation, clarity in working relationships, optimum utilisation of resources, adaptation to change, effective administration, development of personnel, growth and expansion.
Types of organisations are formal and informal organisations. Formal organisation is a system of well-defined jobs, each bearing a definite measure of authority, responsibility and accountability. Advantages of formal organization:
•    easy fixation of responsibility,
•    avoids duplication of efforts,
•    maintains unity of command,
•    leads to easy accomplishment of goals and
•    provides stability to the organisation.
Disadvantages of formal organisation are  delay in work due to long chain of command, causes lack of initiative due to rigidity laid down policies and causes mechanisation of relations due to more emphasis on structure and work.
Informal organisation is an aggregate of interpersonal relationships created without any conscious purpose. Advantages of informal organization:
•    sense of belonging,
•    relief from monotony,
•    solution to work problems,
•    support to formal organisation,
•    fast communication,
•    innovation and creativity.
Disadvantages of informal organisation are conflicting norms, resistance to change, rumours and conformity. Formal and informal organisations are diffentiated on the basis of meaning, origin, purpose, structure, authority, behavior, flow of communication, nature and leadership.

 

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  • Q1

    Superior subordinate relationship cannot exist in

    Marks:1
    Answer:

    informal organisation.

    Explanation:
    Superior subordinate relationship exists only in case of formal organisation structure, which follows scalar chain of command and departmentalisation of work.
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  • Q2

    Stability in a formal organisation structure will not be possible through

    Marks:1
    Answer:

    establishing procedures for measurement of deviations in production process.

    Explanation:
    Establishing procedures for measurement of deviations in production process will not directly provide stability to an organisation as such. They will help in ensuring performance as per defined goals.
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  • Q3

    Organising facilitates effective administration through

    Marks:1
    Answer:

    clear description of jobs and related duties.

    Explanation:
    Organisation facilitates effective administration through clear description of jobs and related duties. Clarity in work relationships enables proper execution of work.
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  • Q4

    One of the factors that help an organisation to grow and expand is

    Marks:1
    Answer:

    delegation of authority.

    Explanation:
    Delegation of authority helps an organisation to expand and grow because it increases the number of quality managers. The organisation can grow in size and increase its business activities after having a large pool of talented personnel.
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  • Q5

    The system of social relationship among the members of an organisation created due to common interests, tastes, attitudes, hobbies etc. is called

    Marks:1
    Answer:

    informal organisation.

    Explanation:
     Informal organisation refers to the social relations developed by the members of an organisation without deliberate efforts.
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