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In which type of organisation, network of social relationships arises out of interaction among employees?

Solution

✅ Correct Option: 2

Option 1 -> Formal Organisation refers to the official structure with defined roles, rules, and hierarchies established by management.

Option 2 -> Informal Organisation is the network of personal and social relationships that spontaneously develops through daily interactions among employees.

Option 3 -> Complex Organisation refers to large-scale organizations with multiple levels, departments, and intricate structural arrangements.

Option 4 -> Matrix Organisation is a formal structure where employees report to multiple managers, combining functional and project-based reporting lines.


Hence, Option 2: Informal Organisation -> Informal organization emerges naturally when employees interact with each other, forming social bonds, friendships, and communication networks beyond the official organizational structure. These relationships are not planned or documented but arise spontaneously based on personal connections, shared interests, and workplace proximity. -> correct

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