Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Organising

Question:

_________ refers to a network of social relationships among employees.

Options:

Formal organisation

Functional structure

Informal organisation

Divisional structure

Correct Answer:

Informal organisation

Explanation:

The correct answer is Option 3- 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. Rather, based on their interaction and friendship they tend to form groups which show conformity in terms of interest.