Question

Explain the need of formal and informal structure of organisation.

Answer 1

The objective is to assist in the planning and control of a company's responsibility centers—such as decentralized departments and divisions. Responsibility accounting usually involves the preparation of annual and monthly budgets for each responsibility center.

Answer 2

Answer:

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Explanation:

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The formal and informal organisation structure.

Organisations have a formal structure which is the way that the organisation is organised by those with responsibility for managing the organisation.

They create the formal structures that enable the organisation to meet its stated objectives.

Often these formal structures will be set out on paper in the form of organisational charts.

However, in the course of time an informal structure develops in most organisations which is based on the reality of day-to-day interactions between the members of the organisation.

This informal structure may be different from that which is set out on paper.

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