Question
State any two advantages and two limitations of formal organisation.
✓
Answer
Two advantages of formal organisation are:
- It is easy to fix responsibility as mutual relationships are clearly defined.
- It provides stability to the enterprise. There are specific rules to guide the behaviour of members.
- It may create rigidity due to prescribed policies and rules.
- Formal lines of communication are to be followed, thus, decisions are delayed.
Need a full question paper?
Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.
Explore more
Similar questions
What do you understand by Demat Account? Explain the benefits of it.
There are some barriers in communication which are concerned with encoding and decoding of message. State any three such barriers.
A company has its registered office in Delhi, manufacturing unit at Gurgaon and marketing and sales department at Faridabad. The company manufactures the consumer products. Which type of organisational structure should it adopt to achieve its target ?
State and explain the principle depicted in the following picture:
Also explain its positive impact.
Also explain its positive impact.
What type of judicial machinery is there to deal with consumer's grievances and disputes?
Explain the important activities performed by human resource management.
Bharat is running an ice cream parlour in a local market. Keeping in mind the changing perceptions about health among the people, one of his employee Abhiraj suggests to him that they should introduce a range a flavoured yogurt. Bharat accepts his suggestion as a result both the image and the profitability of his business increases.
In the context of the above case :
In the context of the above case :
- Identify the feature of management which is being highlighted.
- State the related dimension of the business environment.
- Name and explain the related principle of general management.
'The application of principles of management is dependent upon the prevailing situation at a particular point of time'. State and explain the feature of management principle mentioned here.
“Controlling is a pervasive function”. Explain.
Mr. Vikas Mehra was the Chairman of 'IBM Bank.' The Bank was earning good profits. Shareholders were happy as the bank was paying regular dividends. The market price of their shares was also steadily rising. The bank was about to announce the taking over of 'UK Bank.' Mr. Vikas Mehra knew that the share price of 'IBM Bank' would rise on this announcement. Being a part of the Bank, he was not allowed to buy shares of the bank. He called one of his rich friends Mukand and asked him to invest Rs.4 crores in shares of his bank promising him the capital gains.
As expected after the announcement, the share price went up by 50% and the market price of Mukand's shares was now Rs.6 crores. Mukand earned a profit of Rs.2 crores. He gave Rs.1 crores to Vikas Mehra and kept Rs.1 crores with him. On regular inspection and by conducting enquiries of the brokers involved, Securities and Exchange Board of India (SEBI) was able to detect this irregularity. SEBI imposed a heavy penalty on Vikas Mehra.
Quoting the lines from the above para identify and state any two functions performed by SEBI in the above case.
As expected after the announcement, the share price went up by 50% and the market price of Mukand's shares was now Rs.6 crores. Mukand earned a profit of Rs.2 crores. He gave Rs.1 crores to Vikas Mehra and kept Rs.1 crores with him. On regular inspection and by conducting enquiries of the brokers involved, Securities and Exchange Board of India (SEBI) was able to detect this irregularity. SEBI imposed a heavy penalty on Vikas Mehra.
Quoting the lines from the above para identify and state any two functions performed by SEBI in the above case.