Question : Which of the following statement is not true?
Option 1: Formal organisation originates as a result of company rules & policies
Option 2: Informal organisation arises out of personal qualities of individuals
Option 3: Under formal organisation, flow of communication take place in any direction
Option 4: Formal organisation is rigid in nature
Correct Answer: Under formal organisation, flow of communication take place in any direction
Solution :
Formal organisation structure clearly spells out the job to be performed by each individual, the authority, responsiblity assigned to every individual, the superior-subordinate relationship and the designation of every individual in the organisation. Formal organisation structure creates a scalar chain of communication in the organisation.
Hence, option 3 is the correct answer.
