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ACCA Applied Knowledge · Business and Technology · The formal and informal business organisation

A manager at Tolland plc notices that an informal group of long-serving employees has agreed an unofficial output level below what management expects, and pressures newer staff to conform. Which is the most appropriate description of this situation?

The informal group's norms are conflicting with the formal organisation's goals. Informal groups set their own standards and apply peer pressure, and here restricting output works against management's targets. It is not delegation, a span of control issue, or a formal committee, since the group is unofficial.

  1. AThe informal group's norms are conflicting with the formal organisation's goalsCorrect
  2. BThe formal organisation is operating with a narrow span of control
  3. CThe group is demonstrating effective delegation
  4. DThe group is a formally constituted committee

Explanation

Informal groups develop their own norms, and where these differ from management targets they can work against organisational goals, for example by restricting output. The scenario says nothing about span of control, delegation or a formally constituted body, as the group is unofficial.

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