Difference between Formal and Informal Organisations

The formal and informal organisations differ from each other in the following respects : 1. Origin: Formal organisations are created by conscious managerial decisions. But informal organisations arise spontaneously within the formal organisation because of the natural tendency of the individuals to associate and interact. Management has no hand either in the emergence or abolition of informal groups. 2. Purpose: Read More …

ADVANTAGES AND DISADVANTAGES OF AN ORGANIZATION CHART

Advantages of Organisation Chart: Following are the advantages of an organisation chart 1. It is a tool of administration which indicates graphically to the employees how their positions fit into the total organisation and how they relate to each other. 2. It shows at a glance the lines of authority and responsibility. It is a reliable, blueprint of how the Read More …

CHARACTERISTICS OF AN ORGANIZATIONAL CHART

An organisation chart shows a diagrammatic representation of important aspects of an organisation including the major functions and their relationships. It is a blueprint of the company organisation, its functions lines of authority and way positions. In other words, it is a graphic portrayal of positions in the enterprise and of the formal lines of accountability among them. It provides Read More …

FACTORS AFFECTING SPAN OF CONTROL

The term ‘span of control’ is also known as ‘span of supervision’ or ‘span of authority’. Simply stated it refers to the number of individuals a manager can effectively supervise. Thus, it is expected that the span of control, that is, the number of subordinates directly reporting to a superior should be limited so as to make supervision and control Read More …