Target Exam

CUET

Subject

Business Studies

Chapter

Organising

Question:

Which of the following is NOT an advantage of formal organization?

Options:

No ambiguity in the role that each member has to play as duties are specified. This also helps in avoiding duplication of effort

Unity of command is maintained through an established chain of command

It leads to saturation in accomplishing the personal goals by providing a framework for the operations

It provides stability to the organization

Correct Answer:

It leads to saturation in accomplishing the personal goals by providing a framework for the operations

Explanation:

The correct answer is option 3- It leads to saturation in accomplishing the personal goals by providing a framework for the operations.

It leads to saturation in accomplishing the personal goals by providing a framework for the operations is not an advantage of formal organisation.

 

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. The structure in a formal organisation can be functional or divisional. Formal organisation offers many advantages.

(a) It is easier to fix responsibility since mutual relationships are clearly defined.

(b) 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.

(c) Unity of command is maintained through an established chain of command.

(d) It leads to effective accomplishment of goals by providing a framework for the operations to be performed and ensuring that each employee knows the role he has to play.

(e) It provides stability to the organisation. This is because behaviour of employees can be fairly predicted since there are specific rules to guide them.