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

Zeta Co's finance staff regularly share tips and warn each other about upcoming management decisions over lunch, well before official announcements. Which feature of informal organisations does this best illustrate?

This illustrates the grapevine, an informal communication channel. Staff pass information socially outside official routes, so it spreads quickly but may be incomplete or inaccurate. The scalar chain and span of control are formal structural concepts, not unofficial communication networks.

  1. AThe grapevine, an informal communication channel that can spread information quickly but may be inaccurateCorrect
  2. BA formal upward communication channel set up by management
  3. CThe scalar chain of command
  4. DSpan of control

Explanation

Information passed on socially outside official channels is the grapevine. It is fast but can distort facts or spread rumours. The scalar chain and span of control are formal structure concepts, and the lunch conversations were not set up by management.

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