question_answer

My Car Ltd decided to set-up its new car manufacturing factory in the backward area of West Bengal where very less job opportunities were available. People of that area welcomed this effort of My Car Ltd. The company also decided to provide facilities like school, hospital, market, etc. in the factory premises so that people are attracted to join the factory as workers. My Car Ltd started earning huge profits. Another competing company asked its production manager Arvind to investigate the reasons of earning huge profits by My Car Ltd. Arvind 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 My Car Ltd was allowing flow of communication in all the directions as well as quick feedback.

(i) Identify the type of organisation which allows the flow of communication in all directions.

(ii) Also state the advantages of such type of organisation.

Answer:

(i) The type of organisation discussed here is informal organisation. Interaction among people at work gives rise to a network of social relationships among employees. This is called informal organisation, e.g. meeting in a cafeteria, drama group in an organisation and cricket teams of organisational personnel, are all examples of informal organisations. (ii) Advantages of informal organisation are as follows: [a] Prescribed lines of communication are not followed. Thus, it facilitates quick feedback and spreads information faster. [b] It provides a sense of belongingness and gives due respect to social and psychological needs. [c] It provides the necessary environment for individual creativity and innovation. [d] It contributes to fulfilment of goals, promoting the feeling of cooperation among employees.