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Business Studies · 2023 · 6 marks
CBSE 2023 · Region 3 · Set 1 · Q31
(a) 31. advantages of Formal Organisation.
(a)
31.
advantages of Formal Organisation.
OR
(b)
Give the meanin
any four advantages of this structure.
Marking-scheme solution
Formal organisation refers to the organisation
structure which is designed by the management to
accomplish a particular task and clearly specifies the
boundaries of authority and responsibilities.
Advantages of Formal Organisation :
(a)
It is easier to fix responsibility since mutual
relationships are clearly defined.
(b)
It avoids duplication of effort since there is no
ambiguity in the role that each member has to play.
(c)
It maintains unity of command through an
established chain of command.
(c)
It leads to accomplishment of goals by providing a
framework for the operations to be performed.
(d)
It provides stability to the organisation because
there are specific rules to guide behaviour of
employees.
Q.(b) Give the meaning of ‘Divisional Structure' of an
organisation. State any four advantages of this
structure.
Divisional structure is an organisation structure
which comprises of separate business units or divisions
when the organisation has more than one category of
products to offer.
Advantages of Divisional Structure:
(i)
Product specialisation helps in the development
of varied skills in a divisional head and prepares
him for higher positions.
(ii)
It helps in fixation of responsibility in case of
poor performance of the division.
(iii)
It promotes flexibility and initiative leading to
faster decision making.
(iv)
It facilitates expansion and growth as new
divisions can be added without interrupting the
existing operations.
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CBSE Class 12 Business Studies past-paper question from the 2023 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.