CBSE Class 12 Business Studies 2015 Outside Delhi set 1

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Question : 9
Total: 39
What is meant by 'Formal Organisation'? State its any two advantages.
Solution:  
Formal organisation is a system of well-defined rules and regulations that specily the boundary of all organisational jobs. It is a deliberate process that lays more emphasis on the work to be done rather than interpersonal relationship. The following are advantages of a formal organisation:
(i) Fixation of responsibility: It is easier to fix the responsibility since mutual relationships are clearly defined.
(ii) Clarity of duties: There is no ambiguity in the role that each member has to play as duties, are specified.
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