CBSE Class 12 Business Studies 2018 Outside Delhi set 1

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Question : 9
Total: 32
Differentiate between formal and informal organisations on the basis of
(i) origin,
(ii) authority and
(iii) flow of communication.
Solution:  
Difference between formal and informal organisation:
 Basis  Formal  Informal
  (i) Origin  It originates as a result of companies' rules and policies.  It originates as a result of social interaction among the employees.
 (ii) Authority  Authority arises by the virtue of position in the management.  Authority arises out of personal qualities.
 (iii) Flow of communication  Communication take place through scalar chain.  Communication takes place through informal methods such as, grapevine, gossips, etc.
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