Target Exam

CUET

Subject

Business Studies

Chapter

Organising

Question:

Which organisation specifies the boundaries of authority and responsibility and there is a systematic coordination among the various activities to achieve organisational goals?

Options:

Informal organisation

Inverted V organisation

Flat organisation

Formal organisation

Correct Answer:

Formal organisation

Explanation:

The correct answer is option 4- Formal organisation.

Formal organisation specifies the boundaries of authority and responsibility and there is a systematic coordination among the various activities to achieve organisational goals.

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.

 

OTHER OPTIONS

  • Informal organisation- Interaction among people at work gives rise to a ‘network of social relationships among employees’ called the informal organisation. Informal organisation emerges from within the formal organisation when people interact beyond their officially defined roles. When people have frequent contacts they cannot be forced into a rigid formal structure. Rather, based on their interaction and friendship they tend to form groups which show conformity in terms of interest.
  • Inverted V organisation- An inverted V organization, also known as an inverted pyramid or reverse pyramid, is a less common organizational structure where the traditional hierarchy is turned on its head.
  • Flat organisation- A flat organization, also known as a flat hierarchy or flat structure, is a type of organizational design where there are few or no levels of middle management between staff and executives