Which among the following organization arises because of the 'network of social relationships among the employees'?
Which among the following organization arises because of the 'network of social relationships among the employees'?
Solution
Option 1 -> Functional Organisation is a formal structure where departments are created based on specialized functions like marketing, finance, and operations - not based on social relationships.
Option 2 -> Divisional Organisation is a formal structure where the company is divided into semi-autonomous divisions based on products, geography, or customers - this is officially planned, not socially developed.
Option 3 -> Informal Organisation emerges spontaneously from personal interactions, friendships, and social networks among employees - it is not officially created but naturally develops through workplace relationships.
Option 4 -> Formal Organisation is the official, planned organizational structure with defined hierarchy, roles, and reporting relationships established by management - not based on social networks.
Hence, Option 3: Informal Organisation -> Informal organization arises naturally and spontaneously from the network of social relationships, interactions, and friendships among employees, operating alongside the formal structure without any official authorization or planning -> correct
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