CBSE Class 12 Business Studies 2014 Outside Delhi Set 1 Paper

Question : 30

Total: 37

Differentiate between formal and informal organisation on the basis of the following:
(i) Meaning
(ii) Origin
(iii) Authority
(v) Flow of communication
(vi) Nature

Solution:

With the help of any four points, explain the importance of 'Decentralisation' in an organisation.

Basis of difference	Formal organisation	Informal organisation
Meaning	Formal organisation refers to the organisation structure in which job of every member is clearly defined.	Informal organisation refers to a network of interpersonal relationship in which each member can directly interact each other.
Behaviour	Complete control on the behaviour of employees as it is decided by managers	No control on the behaviour of employees as managers will not interfere with the behaviour of employees unless it results in a negative impact on the organisation.
Origin	The structure originates from the rules and policies of the management.	The structure originates from the social interactions among the employees.
Authority	Employees are bound by hierarchical structure.	All members are equal.
Flow of communication	Communication flows through the scalar chain.	No planned route of communication is followed.
Nature	Formal organisations are rigid	Informal organisations are flexible i.e., can be change.

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