Which of the following are the characteristics of Formal Organization?
(A) It is directed by rules.
(B) Communication takes place through the scalar chain
(C) Arises as a result of company rules and policies
(D) Leaders may or may not be managers. They are chosen by the group.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → (A), (B) and (C) only
Characteristics of Formal Organization:
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(A) It is directed by rules → True, formal organization functions strictly as per rules and regulations.
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(B) Communication takes place through the scalar chain → Correct, communication follows the official hierarchy.
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(C) Arises as a result of company rules and policies → True, formal organization is deliberately created by management.
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(D) Leaders may or may not be managers. They are chosen by the group → False. This is a feature of informal organization, not formal.