ACCA Applied Knowledge · Business and Technology · The formal and informal business organisation
Which of the following is a characteristic of a formal organisation rather than an informal organisation?
A formal organisation has authority and responsibility defined through a documented structure, such as organisation charts and job descriptions. Friendships, the grapevine and naturally emerging leaders belong to the informal organisation, which arises spontaneously from social relationships rather than being deliberately designed by management.
- ARelationships based on shared interests and friendships
- BAuthority and responsibility defined through a documented structureCorrect
- CCommunication through the grapevine
- DLeadership emerging naturally from group members
Explanation
A formal organisation is deliberately designed with defined roles, authority, responsibility and reporting lines, usually documented in organisation charts and job descriptions. The other options describe informal groups, which arise spontaneously from social relationships, with the grapevine as an informal channel.
Did you get it right without looking?
One question tells you little. A timed set on The formal and informal business organisation shows your real accuracy, how long you take and where you lose marks.
More The formal and informal business organisation questions
- Which of the following factors would most strongly favour a decentralised structure?
- A multinational conglomerate has several product divisions. Each division manager has considerable autonomy, but head office monitors each d…
- Which of the following factors would most justify a NARROW span of control for a supervisor?
- Which factor would most strongly favour a more decentralised structure?
- Zeta Co has a project team of engineers who each report both to the head of the engineering department and to the manager of the project the…
- Which of the following is the main characteristic of a formal organisation, as opposed to an informal organisation?