In which type of organisation, network of social relationships arises out of interaction among employees?

Informal Organisation

The correct answer is Option (2) → Informal Organisation.

In the informal Organisation, network of social relationships arises out of interaction among employees.

Informal organisation is the interaction among people at work gives rise to a 'network of social relationships among employees' called the informal organisation. Informal organisation emerges from within the formal organisation when people interact beyond their officially defined roles.  Prescribed lines of communication are not followed. The informal organisation leads to faster spread of information as well as quick feedback.When an informal organisation spreads rumours, it becomes a destructive force and goes against the interest of the formal organisation.