Question:medium

Which of the following is an advantage of Informal organisation?

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Informal organisation boosts morale by building trust and friendships — which leads to greater job satisfaction.
Updated On: Jan 13, 2026
  • It provides stability to the organisation because behaviour of employees can be fairly predicted since there are specific rules to guide them.
  • It leads to effective accomplishment of goals by providing a framework for the operations to be performed.
  • It enhances the employee’s job satisfaction since it gives them a sense of belongingness in the organisation and allows them to find like minded people.
  • It helps in avoiding duplication of efforts as there is no ambiguity in the role that each member has to play.
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The Correct Option is C

Solution and Explanation

Informal organization is the network of personal and social connections that develop organically among employees in the workplace. It is distinct from formal organization, as it is neither officially sanctioned nor documented.

A significant advantage of informal organization is its positive impact on job satisfaction. Employees who work with friends or individuals sharing similar interests experience greater emotional security and a stronger sense of connection to their work environment. This fosters social cohesion and contributes to a positive workplace atmosphere.

Options (A), (B), and (D) describe attributes of formal organization.

Final Answer: (C) It elevates employee job satisfaction by providing a sense of belonging within the organization and facilitating connections with like-minded individuals.
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