ACCA Applied Knowledge · Business and Technology · The formal and informal business organisation
Which of the following is the main characteristic of a formal organisation, as opposed to an informal organisation?
A formal organisation is characterised by defined roles, authority and reporting lines deliberately set by management. Friendships, spontaneous norms and grapevine communication are features of the informal organisation, which develops naturally from social interaction rather than from planned design.
- ARelationships based on shared interests and friendships
- BDefined roles, authority and reporting lines set by managementCorrect
- CNorms that arise spontaneously among colleagues
- DCommunication that travels mainly through the grapevine
Explanation
A formal organisation is deliberately designed by management with defined roles, authority levels and reporting lines. The other options describe features of informal organisation, which arises naturally from social relationships among staff.
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