Advantages and Disadvantages of the company organization

Advantages of the company organization class is for the HSC candidates or for the students of class 11 and 12. This class is a part of HSC (11-12) [ এইচএসসি (১১-১২) ], business organization and management. You can find it as Business Environment, chapter 5, the topic name is “Advantages of the company organization”. This class will help you in your upcoming HSC examination.

Advantages and Disadvantages of the company organization

Advantages of the Formal Organisation

1. Easy to Make Accountable: One of the foremost advantages of a formal organization is that it is too easy to fix accountability as employees know their roles, duties, and responsibilities. They are duty-bound to complete their task in the given time frame. Members of the organization will face the consequences of dereliction of duty and irresponsibility during work.
2. Clarity: Member of the formal structure has clear-cut knowledge of its role and duties. It helps an employee to perform his task efficiently and effectively. There is little scope for confusion in such an organization.
3. Stability and Effectiveness: A formal organization offers more stability and effectiveness in achieving organizational goals. It fosters cooperation, coordination, and consensus among the employees. The organization works like a machine to achieve its full fill organizational needs. It also provides a better platform for the organization’s members to enhance their capabilities and fulfill their individual goals. The organization becomes more robust, disciplined, and effective.
4. Unity in Command: Directions given by the top management directly percolate the lower level of the organization. It helps avoid confusion and does not create any confusion and resistance among the members of the organization.
5. No Overlapping of Work: Work moves in an orderly fashion in the formal organization. The commands are clear from the top organization, and there is not much scope for delay, duplication, and overlapping in work.
6. Professional Relationship: Professionalism is the hallmark of the Formal Organisation. Members in the organization tend to maintain professional relationships among themselves and have less scope for emotions and other factors. They focus more on maintaining utmost professionalism in their work rather than maintaining interpersonal relationships, for example, kinship.
7. Coordinated and Systematic: Coordination among the employees and different departments of the organization is remarkable and commendable. This organization is known for its coordination and systematic workflow that take place in their organization. They are more systematic and show full passion for their work. Each department of the organization is fully aware of its roles, responsibilities, and duties.

Disadvantages of Formal Organisation

1. Delay in Action: The Decision-making process in the Formal Organisation is not too fast. It takes time to consider all the factors in their mind, and then they conclude. This scenario is visible in almost all organizations.
2. Avoid social Needs: This organization has little affection toward a social concerns and tends to ignore the psychological and social needs of the employee. It behaves like a well-oiled machine that cares about achieving organizational goals. Ignoring psychological and social needs leads to discontent and lack of motivation in the employees, and the organization will not be able to use the employee’s full potential.
3. Mechanistic Approach: It has well-defined rules for the organization’s departments and employees, which hinders the process of mutual interplay. The organization is not able to exploit the potential of the employee.
4. Lack of Initiative: Innovation and Open ideas cannot be generated in a tightly-gripped organization. There is less chance of good initiative, and independent thinking is almost zero in such organizations. This would make an organization ineffective, and the growth of such an organization would be hindered.
5. Higher Funds: Budget demand is more in the formal organization than the informal one. Formal organizations require lots of funds to run their organization. They have to the full fill all rules and conditions to run their operations. They have to support their employees to remain dedicated to the organization financially.
6. Rigid Organisation: These organizations are rigid in their approach. These organizations resist change and do not want to incorporate new traditions into their organizational atmosphere. They try to insulate their organization from outside changes and tend to keep them away from the mainstream. Those who are in lower positions are not allowed to make decisions on their own. They have to wait for approval from their seniors. People must be disciplined in their approach.

Advantages of the company organization in details :

Disadvantages of the company organization in details :

See more:

• Digital Commerce Operational Guideline 2021 Bangladesh