Question

Which of the following is not a demerit of the formal organisation?

• A. It emphasises following rigidly laid down policies
• B. It may lead to the spreading of rumours.
• C. It places more importance on work rather than relationships.
• D. It may lead to procedural delays.

Answer 1

The correct option is B

It may lead to the spreading of rumours.

Answer (b) It may lead to the spreading of rumours.

Explanation: The formal organisation is concerned with the good design of positions and jobs with clear-cut relationships and functions as recommended by the top-level management. This kind of association is built by the management to understand the goals of a business and is limited by rules, frameworks, and systems. The spreading of rumours appears in an informal organisation.