Question:

In an informal organisation, authority arises out of:

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Informal organisations form naturally within formal structures.- Authority in informal settings is not assigned but earned through personal influence.- These networks can enhance communication and teamwork but may also lead to resistance against formal decisions.
Updated On: Feb 26, 2025
  • Virtue of position in management
  • Company’s rules and policies
  • Scalar chain
  • Personal qualities
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The Correct Option is D

Solution and Explanation

Step 1: Understanding Informal Organisation. An informal organisation is formed spontaneously based on personal relationships and social interactions among employees. It is not structured by management but evolves naturally within a workplace.

Step 2: Why the correct answer is Personal Qualities?
- In informal organisations, leadership and authority emerge based on trust, respect, and influence, not hierarchy.
- Employees follow individuals who have strong personal qualities such as knowledge, communication skills, and leadership ability.
- Unlike formal organisations, there are no predefined rules, policies, or positions dictating authority. 4
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