The management of a bank plans a new shift system. A group of clerks who eat lunch together every day do not like the plan. They persuade other staff to oppose it, and the plan is held up for months.
Which of the following correctly identifies the source of the problem and its effect?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Informal organisation - its resistance to change may delay or restrict the growth of the organisation.
Option (1) Formal organisation - the established chain of command leads to procedural delays in decision making. — Incorrect. Procedural delay is a real limitation of formal organisation. Here, though, the hold-up comes from a lunch group opposing the plan.
Option (2) Informal organisation - the spreading of rumours makes it a destructive force against the formal organisation. — Incorrect. The source is right but the effect is wrong. The clerks openly persuade others to oppose the plan; no rumour is spread.
Option (3) Informal organisation - its resistance to change may delay or restrict the growth of the organisation. — Correct. Clerks who lunch together every day form an informal organisation. When it opposes a change, the management may fail to carry it out. Such resistance to change may delay or restrict growth, as the months-long hold-up shows.
Option (4) Formal organisation - rigid policies do not give adequate recognition to the creative talent of employees. — Incorrect. Poor recognition of creative talent is a limitation of formal organisation. The clerks are not asking for their talent to be noticed; they are resisting a plan.
NCERT (2026-27 Edition): “Informal Organisation … Disadvantages: The informal organisation has certain disadvantages. Some of them are as follows: |