Read the following passage and answer the following questions.

Progress Ltd. which deals in stationery has been registered with a share capital of ₹1000 crores in New Delhi. The company has a manufacturing unit in Madhya Pradesh and a marketing department in Nashik. The company divided its activities into different departments. The company assigned duties and powers without creating formal authority-responsibility relationship. The entire business started working on gossip and based on personal relations.

'The company places more stress on interpersonal relationships among the workers other than the targets to be completed.'

This is the feature of which organisation?

Informal organisation

The correct answer is option 2- Informal organisation.

The company lays stress on inter personal relation which is a feature of informal organisation.

Interaction among people at work gives rise to a ‘network of social relationships among employees’ called the informal organisation. Informal organisation has no set of behaviour as there is no rigid rules and regulations.