CBSE Class 12 Business Studies 2019 Outside Delhi set 1

Question : 14 of 44

Marks: +1, -0

Distinguish between Formal and Informal organisation on the basis of the following:
(a) Origin;
(b) Authority; and
(c) Leadership

Solution:

Basis	Formal Organisation	Informal Organisation
(a) Origin	It arises as a result of company's rules and policies	It arises as a result of social interaction among the employees.
(b) Authority	Authority arises on the basis of position a person holds in management.	Authority arises on the basis of personal attributes of a person.
(c) Leadership	Managers provide Leadership to the employees.	Leaders may or may not be managers. They are mutually chosen by the group of employees.

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