Which of the following is NOT a merit of formal organisation?

It leads to faster spread of information and rapid feedback.

The correct answer is option 4- It leads to faster spread of information and rapid feedback.

Option 4 is related to informal organisation.

Formal organisation refers to the organisation structure which is designed by the management to accomplish a particular task. Formal organisation offers many advantages. Some of the important ones are:

(a) It is easier to fix responsibility since mutual relationships are clearly defined.

(b) There is no ambiguity in the role that each member has to play as duties are specified. This also helps in avoiding duplication of effort.

(c) Unity of command is maintained through an established chain of command.

(d) It leads to effective accomplishment of goals by providing a framework for the operations to be performed and ensuring that each employee knows the role he has to play.

(e) It provides stability to the organisation. This is because behaviour of employees can be fairly predicted since there are specific rules to guide them.