Question

At Star Ltd., a group of employees from different departments meet every evening after work, share personal concerns, follow a leader whom they themselves have selected, and pass information among themselves in any direction without any planned route. This network of social relationships is an example of:

Options

• Formal organisation

• Company policy structure

• Scalar chain

• Informal organisation

Answer 1

The group arises as a result of social interaction, has no set behaviour pattern, its leader is chosen by the group, and its communication flow is not through a planned route and can take place in any direction. These are the defining features of an informal organisation.