Formal and informal organizations MCQ

Formal organizations typically have a hierarchical structure with clear lines of authority and a defined chain of command. In such organizations, management holds the authority to make decisions, delegate tasks, and enforce policies and procedures. This authority is derived from the organization's formal structure and is based on designated roles and positions. On the other hand, informal organizations lack a formal structure and authority is not predetermined or officially assigned. Therefore, management does not hold the authority in informal organizations.

The correct answer is "Formal organization is planned by management." This statement is true because formal organization refers to the structure and hierarchy within a company or institution that is intentionally designed and implemented by management. It involves the establishment of roles, responsibilities, and reporting relationships to ensure the smooth functioning and achievement of organizational goals.

The principle of scalar chain refers to the hierarchical structure in an organization where authority and communication flow from the top to the bottom. Formal organizations typically have a clear chain of command and a formal structure that follows this principle. Informal organizations, on the other hand, are more flexible and do not necessarily adhere to a strict scalar chain. Therefore, the correct answer is formal organization.

Informal organization is influenced and guided by norms, values, and beliefs. Norms are the unwritten rules and expectations that govern behavior within a group. Values are the principles and ideals that members of the group hold dear and use to guide their actions. Beliefs are the assumptions and convictions that individuals within the group hold to be true. All of these factors play a role in shaping the informal structure and dynamics of an organization.

In a formal organization, people interact with each other according to a set of rules and guidelines. This interaction is an essential part of the functioning of a formal organization and helps facilitate communication, collaboration, and coordination among the members. It allows individuals to exchange information, share ideas, and work together towards achieving the organization's goals. This interaction can occur through various channels such as meetings, discussions, emails, or other forms of communication. By engaging in this interaction, individuals contribute to the overall effectiveness and success of the formal organization.

In a formal organization, rules are given in writing. This means that the rules and regulations of the organization are documented and communicated through written documents such as employee handbooks, policy manuals, or contracts. Having rules in writing ensures clarity and consistency in their interpretation and implementation. It also allows for easy reference and serves as a reference point for employees to understand their rights and responsibilities within the organization.

An informal organization is mainly built to satisfy one's social and psychological needs. Unlike a formal organization, which is structured and governed by rules and regulations, an informal organization is formed based on personal relationships, shared interests, and common goals. It provides a platform for individuals to connect, socialize, and fulfill their emotional and social needs within the organization. This informal network often emerges spontaneously within a formal organization and can greatly impact the overall dynamics and culture of the workplace.

The term "personal" refers to something that is related to an individual's private life or personal matters. In this context, a formal organization is not personal because it is a structured and professional entity that operates according to specific rules and regulations, focusing on achieving organizational goals rather than individual interests. On the other hand, an informal organization is more personal as it is based on personal relationships and interactions among individuals. Therefore, the correct answer is "Formal" as it is the only option that does not align with the concept of personal.

Formal organizations are usually stable because they have clear structures, hierarchies, and established rules and procedures. These organizations have defined roles and responsibilities, which helps in maintaining stability and order. Additionally, formal organizations often have long-term goals and strategies, which further contribute to their stability. On the other hand, informal organizations lack clear structures and may have fluid roles and relationships, leading to potential instability. Therefore, the correct answer is formal organizations.

Both formal and informal organizations can be useful for an employee. Formal organizations provide structure, clear roles, and established processes, which can help employees understand their responsibilities and work efficiently. They also offer opportunities for career growth and advancement. On the other hand, informal organizations consist of social networks, friendships, and informal communication channels. These networks can provide emotional support, mentorship, and access to valuable resources and information. Therefore, both types of organizations offer unique benefits and can contribute to an employee's success and well-being.