CHAPTER – 5

ORGANISING

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ID
U
YG
D
U
ST

78 Class XII : Business Studies

 Meaning of Organising

Organising can be defined as a process that initiates implementation of plans by

clarifying jobs, working relationships and effectively deploying resources for
attainment of identified and desired results. Therefore, it is a process, which
coordinates human efforts, assembles resources and integrates both into a unified

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whole to be utilized for achieving specified objectives.

Organising as a function fo manangement leads to—

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• Creation of organisational structure with suitable personnel.

• Designing specific roles to eliminate ambiguity.

• Defining inter-relationship among personnel for productive cooperation.

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Clarifying authority and responsibility for results and logical grouping of
activities.

Organising process
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Steps Involved in the Process of Organising
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In order to complete the organising function of management, the following steps

are taken:

1. Identification and division of work.

2. Departmentalisation.
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3. Assignment of duties.
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4. Establishing reporting relations.

1. At this step, the total work is divided into various activities, for eg. various
ST

activities of a shoe manufacturing company can be purchase of raw material,

production, stocking of goods, research, advertisement, sales etc.

2. The activities of the same nature are grouped together and assigned to a
particular department. It is known as grouping, for e.g., advertisement and
sales can be given to the markating department.

Class XII : Business Studies 79

 3. At this stage, the responsibility of each individual or post is decided. For e.g.,
the purchase manager will be given the task of purchasing goods, the sales
manager will be given the work of sale of goods etc. while assigning
duties, it is important to match nature of the work and the capabilities of the
person to whom the work is given.
4. Each individual should also know from whom he has to take orders and to

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whom he is accountable. It helps in coordination among various departments.
Q.1 It is the function of management which establishes relationship and deploys
resources. Identify the concept and explain the steps involved in the process

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of the concept. (Hint- Organising; process of organising)
Q.2 Identify the function of management which coordinates human efforts and
physical resources to achieve organisational goals. (Hint- Organising)
Importance of Organising
1.

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Benefits of specialization:In organizing every individual is assigned a part
of total work and not the whole task. This division of work into smaller units
and repetitive performance leads to specialization. Thus organizing promotes
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specialisation which in turn leads to efficient & speedy performance of tasks.
2. Clarity in working relationship:It helps in creating well defined jobs and
also clarifying the limits of authority and responsibility of each job. The superior-
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subordinate relationship is clearly defined in organizing.

3. Effective Administration:It provides a clear description of jobs and related
duties which helps to avoid confusion and duplication. Clarity in working
relationships enables proper execution of work which results in effective
administration.
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4. Optimum utilization of resources:The proper assignment of jobs avoids

overlapping/duplication of work. This helps in preventing confusion and
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minimizing the wastage of resources and efforts.

5. Adoption to Change: A properly designed organizational structure is flexible

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which facilitates adjustment to changes in workload caused by change in

external environment related to technology, products, resources and markets.

80 Class XII : Business Studies

 6. Development of Personnel: Sound organization encourages initiative and
relative thinking on part of the employees. When managers delegatetheir
authority, it reduces their workload so they can focus on more important
issues related to growth & innovation. This also develops the subordinates’
ability and helps him to realize his full potential.
7. Expansion and growth: It helps in growth & diversification of an enterprise

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by adding more job positions, departments, product lines, new geographical
territories etc.
Q.3 A manager is responsible to solve conflicts regarding authority and

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responsibility amongst employees and create fruitful environment to work
as a unit. Identify the function of management and explain its importance.
(Hint- Organsing)
Organizational Structure

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Organisational structure refers to that specific pattern of relationship which is created
during organising process. The structure provides a basis or frame work for
manager and other employees for performing their functions.
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It may be defined as a ‘system of job positions, the jobs assigned to them and the
authority relationship among them.
YG

Relationship between span of management and organisation structure:

It refers to the number of subordinates that can be effectively controlled by a manager/
superior. It gives shape to the organisational structure and determines levels
of management.
Narrow span of management:
D

Results in tall structure whereas wider span of management results in flat structure.
TYPES OF ORGANISATION STRUCTURE
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A. Functional structure
B. Divisional structure
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(A) Functional Structure: In functional structure activities are grouped and

departments are created on the basis of specific functions to be performed.
For example, all the jobs related to production are grouped under production
department, sales activities are grouped under sales department etc.

Class XII : Business Studies 81

 Managing Director

Personnel Marketing Research & Purchasing

Development

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Suitability

(1) Large organizations producing one line of product.

(2) Organizations which require high degree of functional specialization with

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diversified activities.

Advantages:

1. Specialisation:Better division of labour takes place which results in

2.
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specialization of functions and its consequent benefits.

Coordination is established:Allthepersons working within a department

are specialists of their respective jobs. It makes the co-ordination easier at
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departmental level.

3. Helps in increasing managerial efficiency:Managers of one department

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perform same type of function again and again which makes them
specialized and improves their efficiency.

4. Minimises cost: It leads to minimum duplication of efforts which results in

economies of scale and thus lowers cost.

Disadvantages:
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1. Ignorance of organizational objectives: Each departmental head works

according to his own wishes. They always give more weight to their
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departmental objectives. Hence overall organizational objectives suffer.

2. Difficulty in Inter-Departmental Coordination: All departmental heads work

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as per their own wishes which leads to coordination within the department
easier but it makes inter-departmental coordination difficult.

3. Hurdle in complete development of employees: because each employee

specializes only in a small part of the whole job.

82 Class XII : Business Studies

 (B) Divisional Structure

Dividing the whole enterprise according to the major products to be

manufactured (like metal, plastic, cosmetics etc.) is known as divisional
organization structure.

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ID
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YG

Suitability:

1. For the enterprises where large varieties of products are manufactured using
different productive resources. (Multi-product) Example- Tata, Reliance.
D

2. When an organisation grows and needs to add more employees, more

departments or introduce new level of management.
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Advantages

1. Quick decision-making: Divisional manager can take any decision regarding

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his division independently which makes decisions quick and effective.

2. Divisional results can be assessed: Divisional results (profit/loss) can be

assessed easily. On this basis any unprofitable division can be closed.

Class XII : Business Studies 83

 3. Growth and Expansion: It facilitates growth and expansion as new divisions
can be added without disturbing existing departments.

Disadvantages
1. Conflicts among different divisions on allocation of resources.
2. Duplicity of Functions: Entire set of functions is required for all divisions. It

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gives rise to duplicity of efforts among divisions & increases cost.
3. Selfish Attitude: Every division tries to display better performance and
sometimes even at the cost of other divisions. This shows their selfish

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attitude.
Q.4 Vimal cloth Ltd. was manufacturing only fabrics. After having great success
in fabric business the directors of Vimal cloth Ltd. acquired three new
manufacturing units and started selling multi-products in domestic market.
(Electronics, Mobile phone, Cements) They decided that an individual who

unit.
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has capability and competence to handle responsibility would head each

(A) State the type of organisation structure Vimal cloth Ltd. have followed
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as a producer of single product.
(B) Suggest which type of organisational structure Director must adopt
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now and explain its advantages.

[Hint- (A) Functional structure (B) Divisional structure]
Q.5 Rohan a sole proprietor was running food catering business in North Delhi.
He got great success and profit margin in this business. Due to excess
demand in the market he expanded his business and separated departments
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as Purchase, Production, Finance and marketing.

Which type of organisational structure would you suggest him? Enumerate
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its two benefits. [Fucntional structure; Benefits- Specialisation Minimises

Cost]
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FORMAL ORGANISATION
This structure is designed by the management to achieve organizational goals in
which the responsibilities, authority and mutual relationships among all the

84 Class XII : Business Studies

 employees working in an enterprise are clearly defined. It can be functional or
divisional.
Features

1. It is deliberately created by the top management.

2. It is based on rules and procedures which are in written form.

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3. It is impersonal i.e. does not take into consideration emotional aspect.

4. It clearly defines the authority and responsibility of every individual.

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5. It is created to achieve organizational objectives.

Advantages

1. Easier to fix responsibility since mutual relationships are clearly defined.

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2. No overlapping of work – because things move according to a definite plan.

3. Unity of command through an established chain of command.

4. Easy to achieve objectives - because coordination and optimum use of human

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and material resources.

5. Stability in the organisation – because behaviour of employees can be fairly

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predicted since there are specific rules to guide them.

Disadvantages

1. The Work is based on rules which causes unnecessary delays.

2. Lack of initiative: The employees have to do what they are told to do and
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they have no opportunity to show their creativity.

3. Limited in scope: It is difficult to understand all human relationships in an

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enterprise as it places more emphasis on structure and work.

INFORMAL ORGANISATION
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An informal organization is that organization which is not established deliberately

but comes into existence because of common interests, tastes and religious and
communal relations. The main purpose of this organization, structure is getting
psychological satisfaction. For example, employees with similar interest in sports,
films, religion etc. may form their own informal groups.

Class XII : Business Studies 85

 Features

1. It originates from within the formal organization as a result of personal

interaction among employees.

2. It has no written rules and procedures.

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3. It does not have fixed lines of communication.

4. It is not deliberately created by the management.

5. It is personal means the feelings of individuals are kept in mind.

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Advantages

1. Speed: Prescribed lines of communication are not followed which leads to

faster spread of information.

2. Fulfilment of social needs – enhances job satisfaction which gives them a

3.
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sense of belongingness in the organization.

Quick solution of the problems – because the subordinates can speak

without hesitation before the officers, it helps the officers to understand the
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problems of their subordinates.

Disadvantages
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1. It creates rumours: All the persons in an informal organization talk in a

careless way and sometimes a wrong thing is conveyed to the other persons.

2. It resists changes and lays stress on adopting the old techniques.

3. Priority to group interests: Pressurises members to conform to group

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expectations.

Difference between Formal Informal organisation

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Basis Formal Organisation Informal Organisation

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1. Meaning If refers to the structure It refers to the network of

of well-defined authority social relationships which
and responsibility. develop automatically.

2. Nature Rigid & Stable Flexible and unstable

86 Class XII : Business Studies

 3. Authority Arises by virtue of Arises out of personal
position in management. qualities.

4. Adherence Violation of rules No such punishments.

to rules may lead to penalties
and punishments.

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5. Flow of Takes place through Not through a planned
communication thescalar chain. route. It can take place in
any direction.

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6. Purpose To achieve planned To satisfy social and
organizational cultural needs and fulfil
objectives common interest.

7. Formation/origin Deliberately planned Emerges spontaneously as

8. Structure
management.
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andcreated by

Well-defined structure
a result of social interaction
among employees.

No clear-cut structurer
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of tasks& relationships. because of complex
network of relationships.
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9. Flow of authority Authority flows from Authority flows vertically

top tobottom i.e. aswell as horizontally.
downwards.

10. interdependence Independent. Depends on formal strucutre.

D

Q.6 The employees of a software company have formed a dramatic group for
their entertainment and recreation. Name the type of organisation so formed
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and state its features. [Hint- Informal organisation] Features: (i) Originates
itself (ii) No rules (iii) Personal
Q.7 The Principal of SPS Public School ordered the staff that they will be allowed
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to sit in the staffroom situated in their block. No teacher will be allowed to

sit in another staffroom. During school’s hours, teachers can meet teachers
of their department only for work related matters. He wants each teacher to
strictly work as per rules and directions given by him.

Class XII : Business Studies 87

 Identify the type of organisation in this and state disadvantages of such organisation.

[Hint- Formal Organisation]

Disadvantages: (i) Unnecessory delay, (ii) Lack of initiative, (iii) Limited Scope.

Delegation of Authority

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Meaning: It means the granting of authority to subordinates to operate within the
prescribed limits. The manager who delegates authority holds his subordinates
responsible for proper performance of the assigned tasks. To make sure that his
subordinates perform all the works effectively and efficiently in expected manner

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the manager creates accountability.

Process/Elements of Delegation

1. Authority: The power of taking decisions in order to guide the activities of

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others. Authority is that power which influences the conduct of others.

2. Responsibility: It is the obligation of a subordinate to properly perform the

assigned duty. When a superior issues orders, it becomes the responsibility
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of the subordinates to carry it out.

3. Accountability: When a superior assigns some work to a subordinate, he

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is answerable to his superior for its success or failure.

Principle of Absoluteness of Accountability: Authority can be delegated but

responsibility/accountability cannot be delegated by a manager. The authority granted
to a subordinate can be taken back and re-delegated to another person. The manager
cannot escape from the responsibility for any default or mistake on the part of his
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subordinates. For example, If the chief executive asks Marketing Manager to achieve
a sales target of sale of 100 units/day. The marketing manager delegates this task
to deputy sales manager, who fails to achieve the target. Then marketing manager
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will be answerable for the work performance of his subordinates. Thus, accountability
is always of the person who delegates authority.
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Assigning Granting Fixing

Responsibility Authority Accountability

88 Class XII : Business Studies

 Difference between Authority, Responsibility and Accountability

Basis Authority Responsibility Accountability

1. Meaning Right to Obligation to task Answerability for

command perform an outcome of the
assigned assigned task.

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2. Origin Arises from Arises from Arises
formal position delegated authority from responsibility

3. Flow Downward – from Upward – from Upward – from

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Superior to Subordinate Subordinate
Subordinate to Superior to Superior

4. Withdrawal Can be with- Cannot be Cannot be

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drawn any time withdrawn withdrawn once
by giving notice. once created. created.

Importance of the Delegation of Authority

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1. Reduction of Executives’ work load: It reduces the work load of officers.
They can thus utilize their time in more important and creative works instead
of works of daily routine.
YG

2. Employee development: Employees get more opportunities to utilize their

talent which allows them to develop those skills which will enable them to
perform complex tasks.

3. Quick and better decision are possible: The subordinates are granted
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sufficient authority so they need not to go to their superiors for taking decisions
concerning the routine matters.
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4. High Morale of subordinates: Because of delegation of authority to the

subordinates they get an opportunity to display their efficiency and capacity.
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5. Better coordination: The elements of delegation – authority, responsibility

and accountability help to define the powers, duties and answerability related
to various job positions which results in developing and maintaining effective
coordination.

Class XII : Business Studies 89

 Decentralisation

It is defined as even and systematic distribution of authority at every level and all
departments of management. Under this, the authority is transferred to the level
where it is to be exercised, so the number of centres for taking decisions’ increases.
It should be noted that ‘Decentralisation’ is an extension of delegation.

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Centralization and Decentralization: represents the pattern of authority among
managers at different levels. Centralisation of authority means concentration of
power of decision making in a few hands. In such an organization very little authority

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is delegated to managers at middle and lower levels. No organization can be
completely centralized or decentralized. They exist together and there is a need for
a balance between the two. As the organization grows in size, there is tendency to

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move towards decentralization. Thus, every organization is characterized by both.

Importance of Decentralisation

1. Develops initiative amongst subordinates: It helps to promote confidence

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because the subordinates are given freedom to take their own decisions.

2. Quick and better decisions: The burden of managerial decisions does not
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lie in the hands of few individuals but gets divided amongst various persons
which helps them to take better and quick decisions.

3. Relieves the top executives from excess workload: The daily managerial
works are assigned to the subordinates which leaves enough time with the
D

superiors which they can utilize in developing new strategies.

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4. Managerial Development: It means giving authority to the subordinates

upto the lower level to take decisions regarding their work. In this way the
opportunity to take decisions helps in the development of the organization.
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5. Better Control: It makes it possible to evaluate performance at each level

which results in complete control overall the activities.

90 Class XII : Business Studies

 Difference between – Delegation & Decentralization

Basis Delegation Decentralization

1. Nature It is a compulsory act. It is an optional policy.

2. Freedom of action Less freedom to take More freedom of action due

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decisions due to more to less control by the top
control by the superiors. management.

3. Status It is process of sharing It is the result of policy

tasks and authority. decisions taken by top

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management.

4. Scope Narrow – as it is confined Wide – It includes extension

to a superior and his of delegation to all the levels
immediate subordinate. of management.

5. Purpose
of manager.
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To reduce the burden To increase the role and the
autonomy of lower level of
management.
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Q.1 A steel manufacturing company has the following main jobs:
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(i) Manufacturing (ii) Finance (iii) Marketing (iv) Personnel and (v)
Research and development.
(a) Which type of organisational structure will you choose for this type of
a comapany and why?
(b) State any two advantages that this structure offers to an organisation.
(4)
D

[Hint- (a) Functional Structure; it has functionally specialised departments,

(b) (i) Specialisation (ii) Minimises Cost
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Q.2 Resham started a telecommunication company Vilrja Ltd. to manufacture

economical mobile phones for the Indian rural market with 15 employees.
The company did very well in its initial years. As the product was good and
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marketed well, the demand of its product went up. To increase production
the company decided to recruit additional employees. Resham Gupta who
was earlier taking all the decisions of the company had to selectively disperse
the authority. He believed that subordinates are competent, capable and
resourceful and can asssume responsibility for effective implementation of

Class XII : Business Studies 91

 their decisions. This paid off and the comapny was not only able to increase
its production but also expanded its product range.
(a) Identify the concept used by Resham through which he was able to
steer his company to greater heights.
(b) Also explain any three points of importance of this concept. (4)

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[Hint- (a) Delegation of authority, (b) Reduction of workload, Employee
development, quick decision making]

Key Terms to Crack Case-Studies

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S.No. Phrase Topic/ function Sub-Topic/
Concept

1. Identification and grouping of Organising —

activities

2.

3.
Assebling physical, financial and
human resources
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Defining inter-relationship between
Organising

Organising
—

Type of organi-
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different roles sation formal

4. Creation of organisational structure Organising do

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5. Initiates implementation of plans Organising do

by classifying jobs and working
relationship.

6. Defining the work of different job Organising Process of

D

position and accordingly allocating organising 2nd

to various employees step Assign-
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ment of duties

7. Framework within which managerial Organising Organisation

and operating tasks are performed structure
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8. It detrmines the reporting relations. Organising process —

9. Number of subordinates that can be Organising structure Span of

effectively managed by superior management

92 Class XII : Business Studies

 10. It brings occupational specialisation Organisation Functional
Structure Structure

11. It minimises duplication of efforts Organisation Functional

Structure Structure

12. Within each division a functional Org. Divisional

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structure is adopted. Structure structure
13. It brings product specialisation/ Organisation Divisional
Making departments on the basis of Structure Structure

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products.
14. Conflicts among departments. Organisation Divisional
Structure Structure
15. It suits to a company which produces Organisation Divisional

16.
adding number of employees,
introducing more departments.
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more categories/ lines of products,

It is deliberately designed to clarify

Structure Structure
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Type of Fomral
the relationships among diff. job Organisation Organisation
positions.
YG

17. It leads to procedural delays due to do do

prescribed lines of communication
spontaneously.
18. This organisation develops itself do Informal
without putting any special efforts. Organisation
D

19. Downward transfer of work selec- Organising Delegation of

tively to reduce workload of authority
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managers.
20. It increases employees reputation do do
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21. Scattering powers to all levels or Organising Decentrali-

on same level to everyone (vertical sation
or horizontal or both)
22. It leads to increase in role and do do
importance of subordinates

Class XII : Business Studies 93

 23. This philosophy is highly productive do do
if numerous decisions are to be
taken at lower level.
24. It increases the morale of employees do Delegation of
as they are entrusted with the work authority
of higher level.

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Mutliple Choice Questions

I. What is the correct order of organising process?

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(a) Assignment of Duties
(b) Departmentalisation
(c) Identification and Division of work
(d) Establishing reporting relationships.

II.
1)
3)
1)
d,b,a,c
b,a,c,d
Importance of organisation
ID 2) c,b,a,d
4) a,c,b,d
a) Functional and Divisional
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2) First step of organising process b) Benefits of Specialisation
3) Types of organisation structure c) Formal and informal
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4) Forms of Organisation d) Identification & division of work.

Tick the correct Match.
1. i) b 2. i) d 3. i) c 4. i) a
ii) d ii) b ii) d ii) c
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iii) a ii) c ii) b ii) b

iv) c ii) a ii) a ii) d
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III. 1) Formal Organisation a) Refers to network of social

relationships
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2) Functional Structure is Suitable b) Where organisation is large and

producing only one category of
product.

94 Class XII : Business Studies

 3) Informal organisation c) when an organisation grows and
decides to add product line.
4) Divisional structure is suitable d) refers to the organisation which
is deliberately designed.
Tick the corrcet Match.

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1. i) b 2. i) c 3. i) d 4. i) d
ii) c ii) d ii) b ii) a
iii) d ii) b ii) a ii) c

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iv) a ii) a ii) c ii) b
IV. Span of management refers to.
(a) No. of subordinates at lower level
(b) Total no. of managers.

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(c) no. of subordinates under a superior.
(d) no. of levels in the organisation.
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V. Form of Organisational structure in which it is easy to fix responsibility
(a) Functional Organisation (b) Formal Organisation
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(c) Informal Organisation (d) Divisional Organisation

Fill in the Blanks.

I. __________ form of organisation spreads rumours.

II. Downward transfer of authority from a superior to a subordinate is know as
D

____________.
III. Three elements of delegation are ______ , ______ and _______.
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IV. Dispersal of decision making authority to all levels is know as__________.

V. Concentration of decision making power at top level is know as_________.

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State True/False and give reason in support of your ans.

I. Informal organisation exists with in formal set up.

II. Span of management should be large at top level.

Class XII : Business Studies 95

 III. Centralisation gives more autonomy to subordinates.

IV. Decentralisation reduces the burden of top management.

V. Delegation does not mean abdication.

Ans. I. 2, II. 1, III. 3, IV. c, V. d
Fill in the Blanks.

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(1) Informal (2) delegation (3) Authority, Responsibility and Accountability
(4) decentralisation (5) Centralisation.
True/False

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I. True because with in formal set up people interact with each other which
given rise to a network of social relationships called informal organisation.
II. False because the work is complex at top level making difficult for a manager

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to manage a large no. of subordinates.
III. False as the decision making power is with superior only.
IV. True as the work and decision making power both are dispersed.
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V. True because the manager shall still be accountable for the performance of
the assigned tasks.
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1 MARK QUESTIONS

Q.1 “If we delegate authority, we multiply by two, if we decentralise it we multiply

it by many”. Name any one concept to which this statement is related.

Q.2 Name the function of management which coordinates the physical, financial
and human resources and establishes productive relations among them for
D

achievement of specific goals.

Q.3 ‘Identifying and dividing the work’ is the first step in the process of one of the
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functions of management. Identify the function.

3-6 MARKS QUESTIONS

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Q1. A Manager increased the production target from 500 units to 700 units per
month but the authority to draw raw material was not given by him. The
employees were not able to meet the new target. Who should be held
responsible for this and which principle has been violated here? Explain. (4)

96 Class XII : Business Studies

 Q2. A company is manufacturing washing machines. There is a well-defined
system of jobs which is clear and defines authority, responsibility and
accountability in the company. But people are not allowed interact beyond
their officially defined roles. As a result, the company is not able to adopt the
changing business environment. The work force is also not motivated due to

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lack of social interaction. The company is facing problems of procedural
delays and inadequate recognition to creative talents.

I. Suggest how the organisation can overcome the problems faced by it.

II. Give any two benefits it will derive from your suggestion. (4)

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Q3. Ishita Ltd. is manufacturing female wears only. Now company wants to expand
its business and also wants to manufacture male wear and kids wear for
different market segments. Which type of organizational structure should it

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adopt to achieve its target? Give arguments in support of your answer. (3)

Q4. Manager of XYZ Ltd. is over burdened with routine work and is unable to
concentrate on its objectives and other important issues of the firm. To solve
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this problem which management concept should be followed by manager?
Also explain the related function. (3)

Q.5 A truck manufacturing company has its registered office in Delhi,

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manufacturing unit at Gurgaon and marketing department is located at

Faridabad. The company manufactures different type of trucks. Which type
of organisational structure should it adopt? Give reason. State any three
advantages of this organisation structure. (2+3= 5)
D

Q.6 “The responsibility of a firm should be divided among various levels such as
top level, middle level, and lower level”. Identify the concept of management
and state its importance. (2+3= 5)
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Q.7 Lalita Food Limited is a famous company making different food materials. Ms.
Lalita is the managing director of the company. She is fully attached to the
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employees of her company. This is the very reason that before taking every
decision she consults all the concerned employees. A suggestion box has also
been provided in the company. It is opened once a week. The employees giving
positive suggestions are rewarded. Besides, all the employees of the company

Class XII : Business Studies 97

 also enjoy full freedom to communicate with any senior officer any time,
concerning matters of both types related to their jobs or their personal lives.
Identify the form of organisation, described in the paragraph given above and
write about two of its advantages.
Answers/Hints

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1 Mark Questions Answers—
1. Decentralisation
2. Organising

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3. Organising
3-6 Marks Questions : Answers—
1. Manager; Principle of authority and responsibility.
2. (i) By developing/ giving space for informal organisation.

3.
(ii)

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Quick solution to problems.
Fulfillment of social needs of employees.
Divisional structure, as —
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— Co. is going to produce multi-products.
— More employees and further more departments would be needed.
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4. Detegation of authority
— Related function of mgt :— Organising
5. Functional structure : As the company needs functional specialisation.
Advantages :
Specialisation, Better, Coordination, Increase in managerial efficiency,
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Minimises cost.
6. Decentralisation
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Importance : Develops initiative amongst subordinates.

Quick and better decisions
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Relieves the top executives from excess work load.

Imformal Organisation
Advantages : Fulfillment of social needs
Quick solution of the problems.

98 Class XII : Business Studies