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Business Studies · 2024 · 6 marks

CBSE 2024 · Region 3 · Set 1 · Q33

‘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.

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