Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Organising

Question:

Which of the following is NOT a demerit of informal organisation?

Options:

It leads to spreading of rumours.

It gives more importance to structure and work.

It may restrict implementation of changes within the organisation.

It puts psychological pressure on members to conform to group expectations, even if they are against the interest of organisation.

Correct Answer:

It gives more importance to structure and work.

Explanation:

The correct answer is option 2- It gives more importance to structure and work.

Option 2 is an advantage of formal organisation.

Interaction among people at work gives rise to a ‘network of social relationships among employees’ called the informal organisation. The informal organisation has certain disadvantages. Some of them are as follows:

(a) When an informal organisation spreads rumours, it becomes a destructive force and goes against the interest of the formal organisation.

(b) The management may not be successful in implementing changes if the informal organisation opposes them. Such resistance to change may delay or restrict growth.

(c) It pressurises members to conform to group expectations. This can be harmful to the organisation if the norms set by the group are against organisational interests.