Association of Chartered Certified Accountants (ACCA) Certification Practice Test

What is one benefit of informal organizations?

1. Rigid communication

2. Employee commitment

3. Hierarchical oversight

4. Limited knowledge sharing

The correct answer is: Employee commitment

Informal organizations play a crucial role in the workplace by fostering strong interpersonal relationships among employees that can lead to increased employee commitment. Unlike formal organizations, which may focus on strict hierarchical structures and formal communication channels, informal organizations allow for more organic interactions among team members. With informal networks, employees feel a sense of belonging and loyalty, which enhances their emotional investment in the organization. This commitment can lead to higher morale, better collaboration, and increased productivity, as employees are more likely to go above and beyond in their roles when they feel connected to their peers. Additionally, informal communication can often be more effective than formal methods, allowing for quicker resolution of issues and a more agile response to changes within the organization. While other options highlight characteristics typical of formal organizations, such as rigid communication, hierarchical oversight, and limited knowledge sharing, these traits may actually hinder flexibility and reduce overall employee engagement. In contrast, the informal structure thrives on fluid communication and collaboration, which ultimately contributes to a more committed workforce.