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Question
State any two advantages and two limitations of formal organisation.
State any two advantages and two limitations of formal organisation.
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Solution
Two advantages of formal organisation are:
(i) It is easy to fix responsibility as mutual relationships are clearly defined.
(ii) It provides stability to the enterprise. There are specific rules to guide the behaviour of members.
Two limitations of formal organisation are:
(i) It may create rigidity due to prescribed policies and rules.
(ii) Formal lines of communication are to be followed, thus, decisions are delayed.
Two advantages of formal organisation are:
(i) It is easy to fix responsibility as mutual relationships are clearly defined.
(ii) It provides stability to the enterprise. There are specific rules to guide the behaviour of members.
Two limitations of formal organisation are:
(i) It may create rigidity due to prescribed policies and rules.
(ii) Formal lines of communication are to be followed, thus, decisions are delayed.
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