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Which among the following organization arises because of the 'network of social relationships among the employees'?

Solution

✅ Correct Option: 3

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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