'Steelo Ltd.' decided to set-up its steel manufacturing factory in the backward area of Orissa where very less job opportunities were available. People of that area welcomed this effort of 'Steelo Ltd.' To attract people to work in its factory it also decided to Steele many other facilities like school, hospital, market etc. in the factory premises.
'Steelo Ltd.' started earning huge profits. Another competing company asked Rs production manager 'Aslam' to investigate the reasons of earning huge profits by 'Steelo Ltd.'
Aslam found that in both the companies there was systematic coordination among the various activities to achieve organisational goals. Every employee knew who was responsible and accountable to whom, The only difference was that in his organisation communication took place only through the scalar chain whereas 'Steele Ltd.' was allowing flow of communication in all the directions as per the requirement which lead to faster spread of information as well as quick feedback.
(a) Identify the type of organisation which permits 'Steelo Ltd.' the flow of communication in all the directions
(b) Slate another advantage of the type of organisation identified in (a) above.
(c) State any two values which 'Steelo Ltd.' wanted to communicate to the society.

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Solution

(a) In Steelo Ltd., informal organisation permits the flow of communication in all the directions.
(b) The another advantage of informal organisation is fulfilment of social needs. An informal organisation allows for personal communication beyond the officially defined roles. This enables the employees to interact with like-minded colleagues. This unofficial interaction provides a sense of belongingness among the employees towards one another and towards the organisation.
(c) The two values that 'Steelo Ltd.' wanted to communicated to the society are given below.
(i) Fulfilling social responsibility
(ii) Working for benefits of employees.

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