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

It does not fulfill inadequacies in the formal organisation.

The correct answer is option 3- It does not fulfill inadequacies in the formal organisation.

Informal organisations does fulfill the inadequacies of formal organisation.

Interaction among people at work gives rise to a ‘network of social relationships among employees’ called the informal organisation. The informal organisation offers many benefits. Important among them are given below:

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

(b) 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.

(c) 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.