An informal organization:
A)Would not exist in a well-run firm.
B)Is not practical or realistic in today's business system.
C)Slows down business activities and reduces efficiency.
D)Is not likely to be found in a decentralized organization.
E)None of these is correct.

Question

Quizplus · Accepted Answer

An informal organization is a natural and inevitable aspect of any organization, including well-run firms. Informal groups and networks can form spontaneously among employees and have a significant impact on the organization's culture and productivity. Successful managers understand and manage the informal organization alongside the formal structure. The other options are incorrect as they do not reflect the reality of business organizations.

An Informal Organization