Association of Chartered Certified Accountants (ACCA) Certification Practice Test

What is a primary characteristic of an informal organization?

1. Strict hierarchical structure

2. Clearly defined roles

3. Flexibility and spontaneity

4. Formal communication channels

The correct answer is: Flexibility and spontaneity

An informal organization is characterized by flexibility and spontaneity, which distinguishes it from formal organizations. In an informal setting, relationships and communication often develop organically among individuals based on personal connections rather than formal requirements. This allows for a more adaptable approach to problem-solving and decision-making, as members can easily exchange ideas and collaborate without the constraints of a rigid structure. The very nature of an informal organization promotes a more fluid environment where roles may not be strictly defined, and individuals can take on various tasks as needed. This contrasts sharply with formal organizations, which rely on strict hierarchical structures and clearly defined roles to maintain order and efficiency. In these formal settings, communication channels are established systematically, often leading to less spontaneity and flexibility, as information flows through designated routes.