Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Organising

Question:

Read the following passage and answer the following questions.

'Mitabhi Colours' is a profitable company that makes different types of paint colors. Mitabhi colours is working by clubbing similar related jobs under different departments. The company is well-organized, and this has led to a consistent increase in revenue. Workers have clear job roles, which helps them gain experience and boost productivity. Each worker know who he has to take orders from and to whom he is accountable. The company recognizes the need to connect with employees and values them as its most important asset. Delegating tasks to employees not only frees managers from routine work but also provides valuable learning opportunities in practical situations. The company holds its meetings according to the mood of the members. It has no set pattern of behaviour.

'The company holds its meetings according to the mood of the members. It has no set pattern of behaviour.'

Which organisation is highlighted in above lines?

Options:

Formal organisation

Informal organisation

Functional organisation

Divisional organisation

Correct Answer:

Informal organisation

Explanation:

The correct answer is option 2- informal organisation.

Interaction among people at work gives rise to a ‘network of social relationships among employees’ called the informal organisation. Informal organisation has no set of behaviour as there is no rigid rules and regulations. It can be better understood with the help of the following features:

(a) An informal organisation originates from within the formal organisation as a result of personal interaction among employees.

(b) The standards of behaviour evolve from group norms rather than officially laid down rules and regulations.

(c) Independent channels of communication without specified direction of flow of information are developed by group members.

(d) It emerges spontaneously and is not deliberately created by the management.

(e) It has no definite structure or form because it is a complex network of social relationships among members.