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Business Studies · 2023 · 6 marks
CBSE 2023 · Region 3 · Set 2 · Q31
What is meant by ‘informal organisation’? Stateany two advantages and two disadvantages ofInformal Organisation.Give the meaning of ‘Functional Structure’ of anorganisation. State any four advantages of thisstructure.
What is meant by ‘informal organisation’? State
any two advantages and two disadvantages of
Informal Organisation.
Give the meaning of ‘Functional Structure’ of an
organisation. State any four advantages of this
structure.
Marking-scheme solution
Informal organisation means a network of social
relationships among employees arising due to interaction
among people at work.
Advantages of informal organization :
(i)
It leads to faster spread of information as well quick
feedback.
(ii)
It helps to fulfil the social needs of the members.
(iii)
It contributes towards fulfilment of organisational
objectives by compensating for inadequacies in the
formal organisation.
Limitations of informal organisation:
(i)
It leads to spread of rumours.
(ii)
It may lead to resistance to change.
(iii)
It pressurizes members to conform to group
expectations which may be against organisational
interest.
Give the meaning of ‘Functional Structure’ of an
organisation. State any four advantages of this
structure.
Functional structure means an organisational
structure which is formed by grouping of jobs of similar
nature according to functions and organising these major
functions as separate departments like production, finance
etc.
(i)
Advantages of Functional Structure :
A functional structure leads to occupational
specialisation since emphasis is placed on specific
(ii)
functions.
It promotes control and coordination within a
department because of similarity in the tasks being
(iii)
performed.
It helps in increasing managerial and operational
(iv)
efficiency and this results in increased profit.
It leads to minimal duplication of effort which
(v)
results in economies of scale and this lowers cost.
It makes training of employees easier as the focus
is only on a limited range of skills.
(vi)
It ensures that different functions get due attention.
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CBSE Class 12 Business Studies past-paper question from the 2023board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.