Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Organising

Question:

Which of the following statement represent formal organisation?

A) MCS Ltd has meticulously crafted a structured hierarchy of authority, carefully planned and implemented by top-level management.

B) YWS Drinks, an organization that spontaneously emerged from MCS Ltd, is dedicated to providing refreshments to individuals in roadside and park settings on Sundays.

C) Meetings within the organization are conducted based on the members' mood, lacking a predetermined pattern of behavior.

D) ABC Ltd. operating in Chandigarh is renowned for its strict and rigid nature.

Choose the correct option from below.

Options:

A & B

B & C

A & D

C & D

Correct Answer:

A & D

Explanation:

The correct answer is option 3- A & D.

A) MCS Ltd has meticulously crafted a structured hierarchy of authority, carefully planned and implemented by top-level management.- This statement represent formal organisation because the formal organisation specifies the relationships among various job positions and the nature of their interrelationship. This clarifies who has to report to whom. It is created to achieve the specified goals.

B) YWS Drinks, an organization that spontaneously emerged from MCS Ltd, is dedicated to providing refreshments to individuals in roadside and park settings on Sundays.- This statement represent informal organisation because the informal organisation is emerged within the formal organisation due to the social interaction among the people working in the organisation. YWS emerged from MCS Ltd. and fulfill the social needs.

C) Meetings within the organization are conducted based on the members' mood, lacking a predetermined pattern of behavior.- This statement represent informal organisation because in informal organisation there is no rules and regulations. The standards of behaviour evolve from group norms rather than officially laid down rules and regulations. Independent channels of communication without specified direction of flow of information are developed by group members.

D) ABC Ltd. operating in Chandigarh is renowned for its strict and rigid nature.- This statement represent formal organisation because the formal organisation is deliberately created to achieve the specified goals and to achieve those goals strict rules and regulations are followed by the organisation. The procedure followed by the formal organisation is not flexible.