Interaction among people at work gives rise to a network of social relationships among employees which is called_________________.
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Informal Organization
Option (1) Informal Organization — Correct. This is the organisation that nobody designs. As people work together they make friends and form groups. The network of social relationships that results grows out of the interaction itself, and it has no written rules. It cuts across the formal lines of the organisation, and it often carries news faster than the official channels.
Option (2) Formal Organization — Incorrect. The formal organisation is created by management on purpose. Jobs, departments and authority relations are laid down in writing. It does not grow out of social interaction.
Option (3) Functional Organization — Incorrect. Functional organisation is a formal structure, deliberately designed by grouping jobs of a similar nature into departments.
Option (4) Divisional Organization — Incorrect. Divisional organisation is also a formal structure, in which the firm is deliberately divided into self-contained units built around product lines.
NCERT (2026-27 Edition): “Informal 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. When people have frequent contacts they cannot be forced into a rigid formal structure. …” |
Note: The same/similar question has been asked in different years by NTA as per the details given below:
| 2026 | 2025 | 2024 | 2023 | 2022 |
| 11-05 S1 | – | 19-07 S1 | – | – |