Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Organising

Question:

Which organisation's feature is highlighted in the below lines?

'It has no definite structure or form because it is a complex network of social relationships among members.'

Options:

Formal organisation

Informal organisation

Divisional organisation

Circular organisation

Correct Answer:

Informal organisation

Explanation:

The correct answer is option 2- Informal organisation.

Interaction among people at work gives rise to a ‘network of social relationships among employees’ called the informal organisation. Informal organisation can be better understood with the help of the following features:

(a) An informal organisation originates from within the formal organisation as a result of personal interaction among employees.

(b) The standards of behaviour evolve from group norms rather than officially laid down rules and regulations.

(c) Independent channels of communication without specified direction of flow of information are developed by group members.

(d) It emerges spontaneously and is not deliberately created by the management.

(e) It has no definite structure or form because it is a complex network of social relationships among members.