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Business Studies

Importance of Controlling

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Question

Name the organisation in which employees are allowed to communicate freely and there are no rules and regulations.

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Solution

A formal organisation has a definite structure. It is depicted by lines and boxes on the organisation chart (organisation chart is a visual representation of organisation structure). Informal organisation does not have any formal structure. It cannot be precisely shown on the organisation chart. Relationships amongst people change according to changes in their interests and liking for each other.

Workers of production department may consult sales managers to solve their personal problems rather than production manager and vice versa. There are no superiors and subordinates in informal organisation. People communicate with each other in all forms; vertical, horizontal and diagonal.

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Name the organisation in which employees are allowed to communicate freely and these are no rules and regulations.

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There are some barriers in communication which are concerned with organisational structure and rules and regulations. State any three such barriers.

Q. 'Shan Spices Ltd.' is the manufacturer of different food specific spices like Rajmaa Masala, Cholley Masala, AalooParantha Masala etc. Mr Raghav, the owner of the company has created different departments for purchase, production, marketing, finance and human resource. There are thirty employees working in the organisation. Planning is of paramount importance to the company as Mr Raghav believes that effective planning leads to achievement of organisational objectives. So in order to make employees focus on objectives, he issued instructions that during working hours only official matters will be discussed. He made certain rules and code of conduct for the employees to follow, according to which employees are not allowed to visit and talk to the employees of other departments except for official work. He emphasized on work performance which resulted in smooth functioning of the organisation.
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