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Question : 40
Total: 39
Due to spread of COVID-19 pandemic, employees of almost all the companies were working online from their homes. In 2022 when most of the companies called them back to their office and started working offline, 'Taty Software Ltd.' still asked their employees to work from home. Because of this, employees of 'Taty Software Ltd.' were feeling bored, hence for recreation they formed a cricket-club. They started meeting every Saturday and Sunday on a ground near their office building.
(i) Identify and state the type of organisation formed by the employees of "Taty Software Ltd.'
(ii) Also, state any two advantages and two limitations of the type of organisation identified in (i) above.
(i) Identify and state the type of organisation formed by the employees of "Taty Software Ltd.'
(ii) Also, state any two advantages and two limitations of the type of organisation identified in (i) above.
Solution:
The type of organisation formed by the employees of 'Taty Software Ltd., is informal organisation. An informal organisation is that organisation which is not established deliberately but comes into existence because of common interests, tastes and religious and communal relations. Interaction among people at work gives rise to a 'network of social relationships among employees' called the informal organisation. The main purpose of this organisation, structure is getting psychological satisfaction of the employees with common interests. For e.g., employees with similar interest in sports, films, religion etc. may form their own informal groups.
Following are the advantages of informal organisation:
(i) Faster Communication: Informal organisation follows the independent channel of communication because there is no prescribed official channel. It leads to a faster spread of information as well as quick feedback. Sometimes, management also uses such communication to transmit certain information, which the formal system fails to convey.
(ii) Fulfill social needs: Informal organisation satisfies the social needs of the members, which are not satisfied in formal organisation. This enhances their job satisfaction, as it gives them a sense of belongingness.
(iii) Help in achieving organisational objectives: It contributes towards the fulfillment of organisational objectives by compensating for inadequacies in the formal organisation. Informal organisation provides feedback about the work experience as they discuss their views and ideas with superiors.
Following are the disadvantages of informal organisation:
(i) Resistance to change: Informal organisation is bounded by custom and culture, so it resists change. Such resistance may delay or restrict the growth of the organisation.
(ii) Spread of rumours: When an informal organisation spreads rumours, it becomes a destructive force and goes against the interest of the formal organisation.
(iii) Pressure of group norms: In the case of informal organisation, people are under pressure to follow the group norms, even if such norms are against the interest of the formal organisation.
Following are the advantages of informal organisation:
(i) Faster Communication: Informal organisation follows the independent channel of communication because there is no prescribed official channel. It leads to a faster spread of information as well as quick feedback. Sometimes, management also uses such communication to transmit certain information, which the formal system fails to convey.
(ii) Fulfill social needs: Informal organisation satisfies the social needs of the members, which are not satisfied in formal organisation. This enhances their job satisfaction, as it gives them a sense of belongingness.
(iii) Help in achieving organisational objectives: It contributes towards the fulfillment of organisational objectives by compensating for inadequacies in the formal organisation. Informal organisation provides feedback about the work experience as they discuss their views and ideas with superiors.
Following are the disadvantages of informal organisation:
(i) Resistance to change: Informal organisation is bounded by custom and culture, so it resists change. Such resistance may delay or restrict the growth of the organisation.
(ii) Spread of rumours: When an informal organisation spreads rumours, it becomes a destructive force and goes against the interest of the formal organisation.
(iii) Pressure of group norms: In the case of informal organisation, people are under pressure to follow the group norms, even if such norms are against the interest of the formal organisation.
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