ACCA Applied Knowledge · Business and Technology · Business organisational structure
Which of the following is a potential benefit to a business of its informal organisation?
A potential benefit of the informal organisation is that it can provide social support and speed up communication and problem solving. It can boost morale and fill gaps left by formal channels, though it does not replace formal structure and can spread inaccurate rumours.
- AIt replaces the need for any formal reporting lines
- BIt guarantees that rumours are always accurate
- CIt can provide social support and speed up communication and problem solvingCorrect
- DIt ensures that authority is legally defined in each employee's contract
Explanation
Informal networks can give social support, improve morale and allow quick information sharing and problem solving. They do not replace formal structure, rumours may be inaccurate, and contractual authority belongs to the formal organisation.
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