Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Organising

Question:

Which type of organisation is deliberately designed by top management to achieve common organisational objectives?

Options:

Formal

Informal

Corporate

None of these

Correct Answer:

Formal

Explanation:

The correct answer is option 1- formal.

Formal organisation refers to the organisation structure which is designed by the management to accomplish a particular task. The formal organisation can be better understood by a study of its features which are as follows:

(a) It specifies the relationships among various job positions and the nature of their interrelationship. This clarifies who has to report to whom.

(b) It is a means to achieve the objectives specified in the plans, as it lays down rules and procedures essential for their achievement.

(c) Efforts of various departments are coordinated, interlinked and integrated through the formal organisation.

(d) It is deliberately designed by the top management to facilitate the smooth functioning of the organisation.

(e) It places more emphasis on work to be performed than interpersonal relationships among the employees.