Formal organisation offers many advantages. One of the important one is:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → It provides stability to the organisation.
The formal organisation is the structure designed by management, with set duties, rules and lines of authority.
Option (1) It is difficult to fix responsibility. — Incorrect. The opposite is true. Mutual relationships are laid down in advance, so it is easier to fix responsibility.
Option (2) There is ambiguity in the role that each member has to play. — Incorrect. The opposite is true. Duties are specified, so each member knows the role he has to play.
Option (3) It is difficult to understand all human relationships in an enterprise as it places more emphasis on structure and work — Incorrect. This statement is true, but it is a limitation of the formal organisation, not an advantage.
Option (4) It provides stability to the organisation. — Correct. Specific rules guide employees, so their behaviour can be fairly predicted. This makes the working of the organisation stable.
NCERT (2026-27 Edition): “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. …” “(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.” |