• 6 Marks

BMF – Nov 2019 – L1 – SB – Q1b – Business and Organizational Structures and Choices

State two characteristics of formal organisations and four characteristics of informal organisations.

State TWO characteristics of formal organisations and FOUR characteristics of informal organisations.

(6 Marks)

  • Characteristics of Formal Organisations:
    • Defined Structure: Formal organisations have a clearly defined structure with specific roles, responsibilities, and authority levels.
    • Rules and Procedures: They operate under established rules, policies, and standard operating procedures that guide activities and decision-making.
  • Characteristics of Informal Organisations:
    • Flexible Structure: Informal organisations have a fluid and flexible structure without defined roles or responsibilities.
    • Social Interactions: These organisations are built on social relationships and personal interactions rather than formal rules.
    • No Formal Authority: Authority in informal organisations is often based on personal influence rather than official positions.
    • Communication Channels: Communication in informal organisations tends to flow freely, often bypassing formal hierarchical channels.
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