Karan is the General Manager of Analystics Ltd. He faced a problem in some policy on purchases. Instead of talking to the purchase department, he directly consulted his supervisor Subhash about the problem. He talked to him freely and developed an independent channel of communication. It was based completely on their mutual good will: Karan did not follow strict rules and regulations relating to the formal line of communication and also exaggerated the impact of his problem to the extent of creating rumours.
(i) Name the type of organisation followed by Karan? Explain its meaning.
(ii) What could have been done by Karan if he followed the formal lines of communication to solve the problem on purchases?
(iii) Which line of communication could have given a better solution and why?
(iv) State the limitations of the case study.
(i) Karan followed Informal organisation where the lines of interactions between individuals irrespective of their formal titles and relationships involve informal conversations during tea or lunches, exercise/training groups, after-business hours, office parties, etc.
(ii) Under formal organisation, Karan should have consulted his supervisor to solve the problems on the policy of purchase with the Purchase department along with his managerial head of the department. The lie should have clarified all things with both departments with the vendor from whom the purchases were made and taken relevant action and ownership of the problem.
(iii) The formal approach would have been better despite the delay in the process as formal ownership of the problem could have led to transparency that meets the organisational goals.
(iv) Karan did not adhere to rules and procedures that are contrary to organisational goals. Rumours he created about the problem could mislead other employees. He wasted time due to interactions with Subhash which could have been easily spent on following formal lines of communication. After the rumours, his relationship with Subhash could create conflicts and affect productivity.