State any three advantages of formal organization.
Formal organisation refers to the organisation structure which is designed by the management to accomplish a particular task. It specifies clearly the boundaries of authority and responsibility and there is a systematic coordination among the various activities to achieve organisational goals.
Advantages of a Formal organisation are the following:
1) It is easier to fix responsibility since mutual relationships are clearly defined.
2) There is no ambiguity in the role that each member has to play as duties are specified. This also helps in avoiding duplication of effort.
3) Unity of command is maintained through an established chain of command.
Give the meaning of ‘Authority’ as an element of delegation.
State any one advantage of ‘Formal Organisation’.
’Organising involves a series of steps in order to achieve the desired goals.” Explain these steps.
A company has been registered under the Companies Act with an authorized share capital of `20,000 crores. Its registered office is situated in Delhi and manufacturing unit in a backward district of Rajasthan. Its marketing department is situated in Bhopal.
The company is manufacturing Fast Moving Consumer Goods (FMCG).
(i) Suggest with the help of a diagram a suitable organization structure for the company.
(ii) State any three advantages of this organization structure.
