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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


Team Careers360 20th Jan, 2024
Answer (1)
Team Careers360 21st Jan, 2024

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.

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