The informal organisation offers many benefits. Important among them are given below:

(A) Prescribed lines of communication are not followed. Thus, informal organisation leads to faster spread of information as well as quick feedback.

(B) It helps to fulfil the social needs of the members and allows them to find like minded people. This enhances their job satisfaction since it gives them a sense of belongingness in the organisation.

(C) It contributes towards fulfilment of organisational objectives by compensating for inadequacies in the formal organisation.

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

Choose the correct answer from the options given below:

(A), (B) and (C) only

The correct answer is Option (2) → (A), (B) and (C) only.

(A) Prescribed lines of communication are not followed. Thus, informal organisation leads to faster spread of information as well as quick feedback. THIS IS TRUE.

(B) It helps to fulfil the social needs of the members and allows them to find like minded people. This enhances their job satisfaction since it gives them a sense of belongingness in the organisation. THIS IS TRUE.

(C) It contributes towards fulfilment of organisational objectives by compensating for inadequacies in the formal organisation. THIS IS TRUE.

(D) Unity of command is maintained through an established chain of command. THIS IS FALSE. It is the benefit of formal 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. The informal organisation offers many benefits. Important among them are given below:

(1) Prescribed lines of communication are not followed. Thus, the informal organisation leads to faster spread of information as well as quick feedback.

(2) It helps to fulfill the social needs of the members and allows them to find like minded people. This enhances their job satisfaction since it gives them a sense of belongingness in the organisation.

(3) It contributes towards fulfillment of organisational objectives by compensating for inadequacies in the formal organisation. For example, employees reactions towards plans and policies can be tested through the informal network.