Question

In an organisation, there exists a network of social relationships among employees of different departments.

Identify the type of organisation referred to here. State any three of its merits.

Answer 1

The type of organisation referred to in the above lines is “Informal Organisation”.

Informal organisation is a type of organisational structure distinguished by social relationships, interactions, and networks among employees that emerge outside of the conventional organisational hierarchy.

Merits of informal organisation are as follows:

1. Enhanced Communication Channel: In contrast to the formal communication network, informal channels of communication enable participants to communicate their ideas, feedback, emotions, and feelings, among other things. Informal communication is faster, resulting in better overall communication.
2. Sense of Belonging: Social connections among employees in informal organisations build trust, generating a sense of belonging and self-worth among employees by recognising an individual’s personality and boosting their self-image.
3. Innovation and Creativity: Informal organisation encourages employees to be creative and generate new ideas by providing an environment in which they can experiment and quickly adapt to change to achieve the company’s objectives.