How many of the following are advantages of formal organisation?(A) I…

How many of the following are advantages of formal organisation?

(A) It leads to effective accomplishment of goals by providing a framework for the operations to be performed.

(B) Unity of command is maintained through an established chain of command.

(C) It leads to faster spread of information as well as quick feedback.

(D) It provides stability, since the behaviour of employees can be fairly predicted.

(E) Employees’ reactions towards plans and policies can be tested through its network.

Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 3

The correct answer is Option (3) → Three

(A) It leads to effective accomplishment of goals by providing a framework for the operations to be performed. — Correct. The formal organisation gives a framework for operations, and each employee knows his role. So goals are reached effectively.

(B) Unity of command is maintained through an established chain of command. — Correct. Orders pass through a set chain of command, so each person takes orders from one superior.

(C) It leads to faster spread of information as well as quick feedback. — Incorrect. This is an advantage of informal organisation, where prescribed lines of communication are not followed. In a formal organisation, messages must pass through the chain of command, which may cause procedural delays.

(D) It provides stability, since the behaviour of employees can be fairly predicted. — Correct. Specific rules guide employees, so their behaviour can be fairly predicted. This gives stability to the organisation.

(E) Employees’ reactions towards plans and policies can be tested through its network. — Incorrect. Testing reactions through the network is an advantage of informal organisation. In this way it fills the gaps of the formal structure.

NCERT (2026-27 Edition): “Advantages: Formal organisation offers many advantages. Some of the important ones are:
(a) It is easier to fix responsibility since mutual relationships are clearly defined.
(b) There is no ambiguity in the role that each member has to play as duties are specified. This also helps in avoiding duplication of effort.
(c) Unity of command is maintained through an established chain of command.
(d) It leads to effective accomplishment of goals by providing a framework for the operations to be performed and ensuring that each employee knows the role he has to play.
(e) It provides stability to the organisation. This is because behaviour of employees can be fairly predicted since there are specific rules to guide them.”

“Advantages: 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.”