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

At Marlow Ltd, staff in the finance and sales departments regularly share news over lunch, and rumours about a planned restructuring spread quickly before any official announcement. Which feature of the informal organisation does this best illustrate?

This illustrates the grapevine, the informal communication network through which news and rumours spread outside official channels. It arises from social contact between staff. The scalar chain, span of control and formal delegation are features of the formal structure, not of spontaneous workplace gossip.

  1. AThe scalar chain
  2. BThe grapevineCorrect
  3. CSpan of control
  4. DFormal delegation

Explanation

The grapevine is the informal communication network through which news and rumours travel outside official channels. The scalar chain, span of control and delegation are all features of the formal structure and do not describe spontaneous social communication.

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