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.
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