In which type of organisation, network of social relationships arises out of interaction among employees?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Informal Organisation
Option (1) Formal Organisation — Incorrect. A formal organisation is the official structure set up by management, with well-defined jobs and authority. It does not arise from friendships among employees.
Option (2) Informal Organisation — Correct. Interaction among people at work gives rise to a ‘network of social relationships among employees’, called the informal organisation. It forms when people meet beyond their official roles, for example to play cricket on Sundays or have coffee together.
Option (3) Complex Organisation — Incorrect. This is not a type of organisation.
Option (4) Matrix Organisation — Incorrect. A matrix organisation is not studied here. The two types are formal and informal organisation.
NCERT (2026-27 Edition): “Informal Organisation 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. When people have frequent contacts they cannot be forced into a rigid formal structure. Rather, based on their interaction and friendship they tend to form groups which show conformity in terms of interest. …” |