Question:

The informal organisation offers many benefits. Important among them are given below:
(A) Prescribed lines of communication are not followed. Thus, informal organisation leads to faster spread of information as well as quick feedback.
(B) It helps to fulfil 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 fulfilment of organisational objectives by compensating for inade-quacies in the formal organisation.(D) Unity of command is maintained through an established chain of command.
Choose the correct answer from the options given below:

Updated On: June 02, 2025
  • (A), (B), and (D) only
  • (A), (B), and (C) only
  • (A), (B), (C), and (D)
  • (B), (C), and (D) only
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The Correct Option is B

Approach Solution - 1

The informal organisation offers several key benefits, which are important to understand when analyzing the dynamics within any business environment. Let's examine the options and understand why the answer is (A), (B), and (C) only.
(A) Informal organisations do not follow prescribed lines of communication, allowing faster spread of information and quick feedback.
(B) These organisations help fulfil the social needs of members and enable them to find like-minded people, enhancing job satisfaction and providing a sense of belonging.
(C) Informal organisations contribute to the fulfilment of organisational objectives by compensating for inadequacies in the formal organisation.
Now, let's discuss option (D): Unity of command is not typically a feature of informal organisations, as they are generally characterized by flexible structures and not strictly following an established chain of command.
Therefore, option (A), (B), and (C) correctly identify the benefits of informal organisations.
OptionsConclusion
(A), (B), and (D) onlyIncorrect: Does not consider the contribution towards organisational objectives.
(A), (B), and (C) onlyCorrect: Aligns with key informal organisation benefits.
(A), (B), (C), and (D)Incorrect: Includes option (D), which is not a typical characteristic.
(B), (C), and (D) onlyIncorrect: Omits the fast information spread benefit.
In summary, the benefits of informal organisations are best captured by options (A), (B), and (C), highlighting their flexibility, fulfilment of social needs, and support in achieving organisational goals.
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Approach Solution -2

To determine which options correctly describe the benefits of an informal organization, let's analyze each statement in detail:

Statements Analysis

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

Correct: Informal organizations often bypass formal communication channels, allowing for quicker dissemination of information and faster feedback. This can be beneficial in dynamic environments where quick decision-making is necessary.

(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 organization.

Correct: Informal organizations provide a social structure that can fulfill employees' social needs, leading to increased job satisfaction and a sense of belonging. This is a key benefit of informal interactions.

(C) It contributes towards fulfillment of organizational objectives by compensating for inadequacies in the formal organization.

Correct: Informal organizations can fill gaps left by the formal structure. They can address issues that the formal organization might overlook, thereby contributing to the overall achievement of organizational goals.

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

Incorrect: This statement describes a feature of a formal organization, not an informal one. Unity of command and an established chain of command are hallmarks of formal organizational structures, not informal ones.

Correct Options

Based on the analysis, the correct statements are:

(A) Prescribed lines of communication are not followed. Thus, informal organization 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 organization.

(C) It contributes towards fulfillment of organizational objectives by compensating for inadequacies in the formal organization.

Conclusion

The correct answer is: (2) (A), (B) and (C) only

These statements accurately describe the benefits of an informal organization, emphasizing its role in enhancing communication, fulfilling social needs, and compensating for formal organizational inadequacies.

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