'Interaction among people at work give rise to this type of organisation'.

Identify the type of organisation highlighted in the above statement. 

Informal Organisation

The correct answer is option 2- 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.