ACCA Applied Knowledge · Business and Technology · The formal and informal business organisation
Which of the following is most likely to be shown on a formal organisation chart?
A formal organisation chart shows lines of authority and reporting relationships, along with positions and departmental groupings. It does not show friendship groups, grapevine routes or shared social interests, because these belong to the informal organisation and are not part of the deliberately designed structure.
- AFriendship groups between employees
- BLines of authority and reporting relationshipsCorrect
- CRoutes of the grapevine
- DShared social interests of staff
Explanation
An organisation chart depicts the formal structure: positions, reporting lines, levels of authority and departmental groupings. Friendships, grapevine routes and shared social interests are informal and are not displayed on such charts.
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