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Question

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


A

It emphasises following rigidly laid down policies

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B

It may lead to the spreading of rumours.

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C

It places more importance on work rather than relationships.

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D

It may lead to procedural delays.

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Solution

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.


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