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

Which of the following best describes an informal organisation within a business?

An informal organisation is the unofficial network of social relationships and groups that forms spontaneously among employees. It is not created by management or shown on the organisation chart, whereas reporting lines and management-appointed teams belong to the formal organisation.

  1. AThe network of social relationships and unofficial groups that develops among employees, outside the official structureCorrect
  2. BA temporary project team set up by senior management with a written remit
  3. CThe reporting lines shown on the official organisation chart
  4. DA group of managers appointed to monitor compliance with company policy

Explanation

The informal organisation arises spontaneously from personal relationships, shared interests and social needs. It is not designed by management and does not appear on the organisation chart. Reporting lines and appointed groups are features of the formal organisation.

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