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ACCA Applied Knowledge · Business and Technology · Business organisational structure

Which of the following best describes a formal organisation?

A formal organisation is a deliberately designed structure with defined roles, authority and reporting lines that exist to achieve organisational goals. It contrasts with the informal organisation, which arises spontaneously from social relationships between employees rather than from management design.

  1. AA structure with defined roles, authority and reporting lines deliberately set up to achieve organisational goalsCorrect
  2. BA network of friendships and social groups that arises spontaneously among employees
  3. CA group of staff who share a common hobby and meet outside working hours
  4. DA temporary team formed to resolve a single conflict between departments

Explanation

A formal organisation is deliberately designed, with documented roles, authority and reporting relationships aimed at achieving objectives. The second option describes an informal organisation, which emerges naturally from social interaction rather than being designed.

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