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Business Studies · 2024 · 6 marks
CBSE 2024 · Region 3 · Set 1 · Q33
‘Rewton Ltd.’ was a reputed computer software company providingunique software all over India. The turnover of the company was veryhigh resulting in good profits. The Chief Executive Officer, Vihaan, wasvery strict and disciplined. He specified the boundaries of authority andresponsibility for achieving organizational goals. There was systematiccoordination among the various activities and specific relationshipsamong various job positions. The company provided facilities like acanteen, a gym, a library, a music room, and a rest area for its employees,which they could use during rest intervals. Using these facilities, theemployees developed friendships and discussed not only their personal,social and emotional issues, but also the official ones.The General Manager was of a different view. He told the ChiefExecutive Officer that there was no use providing these facilities to theemployees as it is an extra financial burden on the organization on onehand and on the other hand, it encourages groupism and whenever anychange is required in the organization, they all resist. He suggested thatthey should do away with these facilities. But the Chief ExecutiveOfficer, Vihaan, explained to the General Manager that this type of socialinteraction is necessary, and is in the best interest of the organization.These interactions among people at work give rise to a network of socialrelationships among employees and have many benefits.(i)Identify and explain the type of organisation whose existence theChief Executive Officer felt was necessary.(ii)State any two advantages and two disadvantages of the type oforganization identified in (i) above.
‘Rewton Ltd.’ was a reputed computer software company providing
unique software all over India. The turnover of the company was very
high resulting in good profits. The Chief Executive Officer, Vihaan, was
very strict and disciplined. He specified the boundaries of authority and
responsibility for achieving organizational goals. There was systematic
coordination among the various activities and specific relationships
among various job positions. The company provided facilities like a
canteen, a gym, a library, a music room, and a rest area for its employees,
which they could use during rest intervals. Using these facilities, the
employees developed friendships and discussed not only their personal,
social and emotional issues, but also the official ones.
The General Manager was of a different view. He told the Chief
Executive Officer that there was no use providing these facilities to the
employees as it is an extra financial burden on the organization on one
hand and on the other hand, it encourages groupism and whenever any
change is required in the organization, they all resist. He suggested that
they should do away with these facilities. But the Chief Executive
Officer, Vihaan, explained to the General Manager that this type of social
interaction is necessary, and is in the best interest of the organization.
These interactions among people at work give rise to a network of social
relationships among employees and have many benefits.
(i)
Identify and explain the type of organisation whose existence the
Chief Executive Officer felt was necessary.
(ii)
State any two advantages and two disadvantages of the type of
organization identified in (i) above.
Marking-scheme solution
(i)
Informal Organisation
It is a ‘network of social relationships among employees’.
It emerges from within the formal organisation when people
interact beyond their officially defined roles.
(ii)
Advantages
1. As prescribed lines of communication are not followed, It
leads to faster spread of information as well as quick
feedback.
2. It helps to fulfil the social needs of the members and gives
them a sense of belongingness in the organisation.
3. It contributes towards fulfilment of organisational
objectives by compensating for inadequacies in
the formal organisation.
Disadvantages:
1. An informal organisation spreads rumours and it becomes a
destructive force.
2. The management may not be successful in implementing
changes if the informal organisation opposes them.
3. It pressurises members to conform to group expectations
which may be against organisational interests.
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CBSE Class 12 Business Studies past-paper question from the 2024board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.