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Explain the functions of the formal and informal organizations
and explain why grapevine could cause damages in a business?
Solution
The functions of Formal Organization are:
1. Achievement of the Organizational Goals
2. To assign each individual a specific job
3. To assign a fixed authority or decison-making power.
4. To create superior and sub-ordinate relation.
5. To create a scalar chain of communication in the organisation.
6. Systematic division of work to eliminate duplication and overlapping of work.
7. Co-ordinating the activities of various departments.
The functions of Informal Organization are:
1. Give psychological satisfaction to employees.
2. Provide each member with the sympathetic type of human consideration which supports his
self-image and his personal integrity.
3. Provide simultaneously the climate for experiments with new methods of work.
4. Preserving group integrity.
5. Informal organisations help in solving the work problems of members.
6. Informal group acts to fill up the communication gaps of its members.
Grapevine means the the informal transmission of information, gossip or rumor from person to
person. Informal communication is a process through which unofficial information is spread by
people talking to each other. The informal network is thefastest communication method but it
spreads rumor, untrue and distorted information and for which theobjective of the organization
goes in vain.
When the employees fail to understand any message, they try toexplain in their own way.
Thus they can create and spread distorted information.
If the sender sends any untrue message being inattentive, the receiver islikely to treat the
message to be true and accordingly he informs others; hence false informationspreads
unconsciously.
There are some people who spread rumors intentionally to get cheap praise fromthe people.
Such intention distorts the real message.
In this way, Grapevine cause damages to the business.

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Explain the functions of the formal and informal organizationsand .pdf

  • 1. Explain the functions of the formal and informal organizations and explain why grapevine could cause damages in a business? Solution The functions of Formal Organization are: 1. Achievement of the Organizational Goals 2. To assign each individual a specific job 3. To assign a fixed authority or decison-making power. 4. To create superior and sub-ordinate relation. 5. To create a scalar chain of communication in the organisation. 6. Systematic division of work to eliminate duplication and overlapping of work. 7. Co-ordinating the activities of various departments. The functions of Informal Organization are: 1. Give psychological satisfaction to employees. 2. Provide each member with the sympathetic type of human consideration which supports his self-image and his personal integrity. 3. Provide simultaneously the climate for experiments with new methods of work. 4. Preserving group integrity. 5. Informal organisations help in solving the work problems of members. 6. Informal group acts to fill up the communication gaps of its members. Grapevine means the the informal transmission of information, gossip or rumor from person to person. Informal communication is a process through which unofficial information is spread by people talking to each other. The informal network is thefastest communication method but it spreads rumor, untrue and distorted information and for which theobjective of the organization goes in vain. When the employees fail to understand any message, they try toexplain in their own way. Thus they can create and spread distorted information. If the sender sends any untrue message being inattentive, the receiver islikely to treat the message to be true and accordingly he informs others; hence false informationspreads unconsciously. There are some people who spread rumors intentionally to get cheap praise fromthe people. Such intention distorts the real message. In this way, Grapevine cause damages to the business.