Class 12 Business Studies - Chapter Organising NCERT Solutions | A company manufacturing sewing machines
A company manufacturing sewing machines set up in 1945 by the British promoters follows formal organisation culture in totality. It is facing lot of problems in delays in decision making. As the result it is not able to adapt to changing business environment. The work force is also not motivated since they cannot vent their grievances except through formal channels, which involve red tape. Employee turnover is high. Its market share is also declining due to changed circumstances and business environment. You are to advise the company with regard to change it should bring about in its organisation structure to overcome the problems faced by it. Give reasons in terms of benefits it will derive from the changes suggested by you.
The suggestions are:
1. To overcome the limitations of formal organisation, the management should encourage workers to interact and socialize with each other through get- togethers and outings. In this way, everyone will interact and like minded people will come closer. The net result will be a more satisfied workforce.
2. The management should also introduce employee suggestion systems so that good suggestions can be implemented and rewarded. The communication channels should be open so that a sense of belongingness is created in the company.
3. The management should try to decentralise organisation structure.
4. The suggested area where the business can be diversified is textile machineries like embroidery units, sequencing units, buttoning units.
Benefits the company will derive from these changes:
- Introduction of informal interaction between employees will help in fulfilling social needs of the employees. It will enhance their job satisfaction and give them a sense of belongingness in the organisation.
- Quick decision making will also take place since prescribed lines of communication will not be followed and faster spread of information will give quick feedback.
- Introduction of employee suggestion systems will result in increased motivation for those employees who make good suggestions. This also helps in reduction of labour turnover. Introduction of decentralisation will also help in this.
- All the above will help in fulfilling organisational objectives and eliminate the inadequacies of formal structure.
More Questions From Class 12 Business Studies - Chapter Organising
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A company X limited manufacturing cosmetics, which has enjoyed a pre-eminent position in business, has grown in size. Its business was very good till 1991. But after that, new liberalised environment has seen entry of many MNC’s in the sector. With the result the market share of X limited has declined. The company had followed a very centralised business model with Directors and divisional heads making even minor decisions. Before 1991 this business model had served the company very well as consumers had no choice. But now the company is under pressure to reform. What organisation structure changes should the company bring about in order to retain its market share? How will the changes suggested by you help the firm? Keep in mind that the sector in which the company is FMCG.
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Neha runs a factory wherein she manufactures shoes. The business has been doing well and she intends to expand by diversifying into leather bags as well as western formal wear thereby making her company a complete provider of corporate wear. This will enable her to market her business unit as the one stop for working women. Which type of structure would you recommend for her expanded organisation and why?
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Decentralisation is an optional policy. Explain why an organisation would choose to be decentralised.
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Identify the network of social relationships which arises spontaneously due to interaction at work.
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A company, which manufactures a popular brand of toys, has been enjoying good market reputation. It has a functional organisational structure with separate departments for Production, Marketing, Finance, Human Resources and Research and Development. Lately to use its brand name and also to cash on to new business opportunities it is thinking to diversify into manufacture of new range of electronic toys for which a new market is emerging. Which organisation structure should be adopted in this situation? Give concrete reasons with regard to benefits the company will derive from the steps it should take.
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Can a large sized organisation be totally centralised of decentralised? Give your opinion.
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