Q.In an informal organisation, authority arises out of ________. (A) Virtue of position in management (B) Company's rules and policies (C) Scalar chain (D) Personal qualities
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Start your 14-day free trial to unlock the full solution →In an informal organisation, authority is not assigned by management but emerges from an individual's personal qualities and the respect they earn from their peers.
Organisations, whether large or small, often have two distinct structures operating simultaneously: the formal and the informal. The formal organisation is deliberately created by management to achieve specific objectives. It has a defined structure, clear lines of authority, responsibility, and a set of rules and procedures. Think of the organisational chart you might see in a company – that's the formal structure.
However, alongside this planned structure, an informal organisation spontaneously develops within the formal one. This arises from the natural social interactions, friendships, and common interests among employees. People working together inevitably form groups, share ideas, and develop relationships that go beyond their official job descriptions. These groups are not officially sanctioned or designed by management; they emerge organically.
The informal organisation is often described as the 'shadow organisation' because it operates beneath the surface of the formal structure, influencing communication, decision-making, and employee behaviour in significant ways.
Now, consider how authority operates in these two contexts. In a formal organisation, authority is clearly defined and flows from the top down, following the scalar chain. It is attached to the position an individual holds in the management hierarchy. For instance, a manager has authority over their subordinates because of their designated role, and this authority is backed by company rules and policies. Options (A), (B), and (C) – virtue of position in management, company's rules and policies, and scalar chain – all describe how authority arises in a formal organisation.
In stark contrast, the informal organisation does not have a formal hierarchy or assigned positions of power. Therefore, authority in this context cannot stem from a job title or official rules. Instead, authority in an informal group is earned and arises from an individual's personal qualities. …
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