Question

Which of these is a feature of informal organisation?

• A. Clear structure and hierarchy
• B. Based on personal relationships
• C. Defined roles and responsibilities
• D. Official communication channels

Hint:

Informal organizations play a key role in fostering communication and camaraderie within a company, although they are not officially structured or defined.

Answer 1

The Correct Option is B

In business studies, understanding the characteristics of informal organizations is essential as they significantly impact how a formal organization functions. One of the primary features of an informal organization is that it is Based on personal relationships. This attribute differentiates an informal organization from a formal one, which typically includes:

• Clear structure and hierarchy: This is typical of a formal organization where each member has a defined position within an official hierarchy.
• Defined roles and responsibilities: This involves specific tasks and duties designated to individuals, found in formal organizational settings.
• Official communication channels: Formal organizations use structured communication paths, such as memos and reports.

Informal organizations arise naturally among people within a structured group, based on personal affinities and social interactions. This leads to the formation of groups driven by interest, friendship, and personal connections rather than organizational directives.