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Question

Short Answer Question: 
Why is informal organisation considered better than formal organisation?


Solution

Informal organisation is considered better than formal organisation because:
(i) Communication and feedback is quick, as scalar chain is not followed.
(ii) It provides a sense of belonging and fulfills social needs of employees.
(iii) It enhances creativity and innovation.
(iv) It helps in fulfillment of goals through cooperation among employees.

Business Management

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