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Organising — Business Studies STD 12 Commerce — Question

CBSE BoardEnglish MediumSTD 12 CommerceBusiness StudiesOrganising1 Mark
Question
Why is informal organisation considered better than formal organization?
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Answer

Informal organisation is considered better than formal organisation because:
  1. Communication and feedback is quick, as scalar chain is not followed.
  2. It provides a sense of belongingness and fulfils social needs of employees.
  3. It enhances creativity and innovation.
  4. It helps in fulfilment of goals through cooperation among employees.

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