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A network of social relationships that arise spontaneously due to interaction at work is known as:
Question

A network of social relationships that arise spontaneously due to interaction at work is known as:

A.

Decentralisation

B.

Delegation

C.

Formal organisation

D.

Informal organisation

Correct option is D


An informal organisation refers to the network of social and personal relationships that naturally develop among employees within a formal organisational structure. These relationships arise spontaneously through daily interaction, mutual interests, friendship, shared experiences, and social needs.
Unlike a formal organisation, which is created deliberately by management, the informal organisation is not planned, not formally documented, and has no official rules. However, it plays a vital role in improving communication, boosting morale, and fostering cooperation among employees.
Thus, the correct answer is (d) Informal organisation.
Information Booster
1. Informal organisation satisfies social and psychological needs of employees.
2. It develops naturally without managerial planning.
3. It helps in faster information flow through grapevine communication.
4. It can support or sometimes resist changes introduced in the formal organisation.
5. It often influences employee behaviour and group norms.

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