Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Organising

Question:

In which organisation, it is easy to fix responsibility?

Options:

Formal

Informal

Both 1 and 2

None of the above

Correct Answer:

Formal

Explanation:

The correct answer is option 1- formal.

Formal organisation is designed by the management to achieve organisational goals. Formal organisation offers many advantages. Some of the important ones are:

(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.