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Smita is the organisational head of Fun India Ltd, a company engaged in the production of educational toys for schools. The management of the company believes that only formal organisation should be present in the company. Because of this view point, they do not permit employees interaction within the office premises. Only a 15 minute lunch break is given to employees and they are expected to eat at their seats only. All this has created unrest among employees and company is witnessing falling levels of productivity. Smita encourages the management to allow the emergence of informal organisation to combat the above problem.

(i) Give the meaning of informal organisation.

(ii) State the importance of such an organisation for a company.

Answer:

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