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Business Studies

Formal and Informal Organisation

Royal Ltd. de...

Question

Royal Ltd. decided that whenever a person reaches a particular age he will be promoted. Influenced by this plan of the company several employees from other companies also joined the firm. But within a few days, they realised that the firm has a pre-determined relation structure without free communication. ___ type of organisation is described here.

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Solution

Formal organisation is described in the above situation.

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Q. Royal Ltd. decided that whenever an employee reaches a particular age the employee will be promoted. Influenced by this plan of the company several employees from other companies also joined the firm. But within few days they realized that the firm has pre-determined relation structure without free communication.
On the basis of this, answer the following questions.
(a) Identify the type of organization described here.
(b) Point out any two limitations of this type of organisation.

Q. ABC Ltd announced a plan that nobody would smoke in the organisation premises and they further added that certain penalty will be imposed on those employees overlooking this.
(i) Name the type of plan related to above para
(ii) Name the feature of that plan
(iii) Name the values emphasized by the company

Q. Mr. Singh is working as the General Manager, a chain of hotel keeping a watch over the business environment is included in his routine. For the last few days Mr. Singh has been observing that the government taking special interest in Tourism Industry. The receipt of foreign exchange and employment promotion are its reasons. On the basis of this news he decided to set up hotels at several tourist places. They established several hotels before other companies considered this issued. Very soon, their hotels became well-known in the market. Behind the fame of this company another reason was that this company was giving its employees not only the responsibility but also the authority of completion of work. The environment being to their liking now they has started meeting their managers with the latest ideas, which are taken by the company. (a) Identify the importance of business environment described here by quoting the relevant lines. (b) Identify the principles nfManagement being used in the Company. (c) On which level is Mr. Singh working. Write any two more function performed at that level.

Q. The production of the new iPhone is split up into many different parts: design, hardware, software, manufacture, marketing, production, and assembly. This way, the company can hire specialised people for each task. Tim Cook is the overall authority over the employees. He is responsible for ensuring that his employees are motivated towards achieving the organisational goal. A hierarchical structure developed by Steve Jobs was modified by Tim Cook so that there is a systematic chain from top to bottom levels of workers at Apple. This hierarchy allows communication even across the departments in the company. There is just one person managing the entire organisation. The company has special recognition for employees, such as the Apple Genius, which offers $45,000/year. Also, they are provided with health benefits, financial and retirement benefits, family and parenting benefits, etc. The company is divided into design, hardware, software, manufacture, marketing, production, and assembly.
What type of organisational structure is seen here?

[0.80 marks]

Q. The production of the new iPhone is split up into many different parts: design, hardware, software, manufacture, marketing, production, and assembly. This way, the company can hire specialised people for each task. Tim Cook is the overall authority over the employees. He is responsible for ensuring that his employees are motivated towards achieving the organisational goal. A hierarchical structure developed by Steve Jobs was modified by Tim Cook so that there is a systematic chain from top to bottom levels of workers at Apple. This hierarchy allows communication even across the departments in the company. There is just one person managing the entire organisation. The company has special recognition for employees, such as the Apple Genius, which offers $45,000/year. Also, they are provided with health benefits, financial and retirement benefits, family and parenting benefits, etc.

The concentration of authority in the company lies with just one person. What is the organisational structure seen in this company?

[0.80 marks]

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