‘Kia Tyres’ is a company manufacturing tyres for cars, two-wheelers, trucks and buses. It has a well-defined organisational structure designed by the management to facilitate smooth functioning of the organisation. It specifies the relationships among various job positions and the nature of their inter-relationship. It is easier to fix responsibility, since mutual relationships are clearly defined. There is no ambiguity in the role that each member has to play, as duties are specified. This also helps in avoiding duplication of work. As a result, ‘Kia Tyres’ is able to effectively accomplish its goals.
However, during lunch breaks and after office hours, employees from different departments of ‘Kia Tyres’ meet regularly. This helps to fulfil the social needs of employees and allows them to interact with like-minded people. This enhances their job satisfaction by giving them a sense of belongingness in the organisation.
(i) Identify the types of organisation discussed in the above and give their meaning.
(ii) State two advantages of each of the types of organisation identified in (i) above, not discussed in the given case.
‘Kia Tyres’ is a company manufacturing tyres for cars, two-wheelers, trucks and buses. It has a well-defined organisational structure designed by the management to facilitate smooth functioning of the organisation. It specifies the relationships among various job positions and the nature of their inter-relationship. It is easier to fix responsibility, since mutual relationships are clearly defined. There is no ambiguity in the role that each member has to play, as duties are specified. This also helps in avoiding duplication of work. As a result, ‘Kia Tyres’ is able to effectively accomplish its goals.
However, during lunch breaks and after office hours, employees from different departments of ‘Kia Tyres’ meet regularly. This helps to fulfil the social needs of employees and allows them to interact with like-minded people. This enhances their job satisfaction by giving them a sense of belongingness in the organisation.
(i) Identify the types of organisation discussed in the above and give their meaning.
(ii) State two advantages of each of the types of organisation identified in (i) above, not discussed in the given case.
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Solution and Explanation
The first paragraph talks about a structure "designed by the management", with clearly defined relationships, fixed responsibility and specified duties. This is the Formal Organisation.
The second paragraph talks about employees meeting "during lunch breaks and after office hours" and meeting social needs. This is the Informal Organisation.
Step 2: Meaning of the two types:
Formal organisation: the structure designed by the management to do a particular task, with clear boundaries of authority and responsibility.
Informal organisation: a network of social relationships among employees that arises from their interaction at work. It is not planned by the management.
Step 3: Part (ii): Two more advantages of formal organisation:
1. Unity of command is maintained. Each person reports to one superior through a chain of command, so there is no confusion in orders.
2. It gives stability to the organisation. There are set rules to guide behaviour, so the behaviour of employees can be fairly predicted.
Step 4: Part (ii): Two more advantages of informal organisation:
1. It spreads information faster. It does not follow the prescribed lines of communication, so news travels quickly and feedback comes fast.
2. It helps fulfil organisational objectives. It makes up for the gaps in the formal organisation and supports it in many ways.
Final Answer:
(i) Formal organisation and informal organisation. (ii) Formal: unity of command, stability. Informal: faster communication, fulfils organisational objectives.
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