Formal And Informal Organizations MCQ

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Questions: 10 | Attempts: 584 | Updated: Nov 16, 2023

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There are two types of organizations, formal and informal. Are you ready for the formal and informal organizations MCQ quiz? A formal organization is meant by an organization with set rules and regulations that have to be followed by the employees. On the other side, an informal organization is meant by an organization with a focus on building social relationships and networks. Let's see if you really know enough about formal and informal organizations or not.

Questions and Answers

1.

In a formal organization, rules
- A.
  
  Subject to interpretation
- B.
  
  Are not there
- C.
  
  Are given in writing
- D.
  
  Are not mandatory to be followed
Correct Answer
C. Are given in writing

Explanation
In a formal organization, rules are given in writing. This means that the rules and regulations of the organization are documented and communicated through written documents such as employee handbooks, policy manuals, or contracts. Having rules in writing ensures clarity and consistency in their interpretation and implementation. It also allows for easy reference and serves as a reference point for employees to understand their rights and responsibilities within the organization.

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2.

Which of these statement is true about formal organization?
- A.
  
  Formal organization's main focus in team building.
- B.
  
  Formal organization is planned by management.
- C.
  
  Formal organization is a part of informal organization.
- D.
  
  None of these
Correct Answer
B. Formal organization is planned by management.

Explanation
The correct answer is "Formal organization is planned by management." This statement is true because formal organization refers to the structure and hierarchy within a company or institution that is intentionally designed and implemented by management. It involves the establishment of roles, responsibilities, and reporting relationships to ensure the smooth functioning and achievement of organizational goals.

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3.

An informal organization is formed
- A.
  
  Before a formal organization is formed
- B.
  
  Under a formal organization when people interact with each other
- C.
  
  Deliberately by the management
- D.
  
  Under a formal organization with a set of rules
Correct Answer
B. Under a formal organization when people interact with each other

Explanation
In a formal organization, people interact with each other according to a set of rules and guidelines. This interaction is an essential part of the functioning of a formal organization and helps facilitate communication, collaboration, and coordination among the members. It allows individuals to exchange information, share ideas, and work together towards achieving the organization's goals. This interaction can occur through various channels such as meetings, discussions, emails, or other forms of communication. By engaging in this interaction, individuals contribute to the overall effectiveness and success of the formal organization.

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4.

Which type of organization follows the principle of scalar chain?
- A.
  
  Formal organization
- B.
  
  Informal organization
- C.
  
  Both
- D.
  
  None
Correct Answer
A. Formal organization

Explanation
The principle of scalar chain refers to the hierarchical structure in an organization where authority and communication flow from the top to the bottom. Formal organizations typically have a clear chain of command and a formal structure that follows this principle. Informal organizations, on the other hand, are more flexible and do not necessarily adhere to a strict scalar chain. Therefore, the correct answer is formal organization.

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5.

Informal organization is fun by
- A.
  
  Norms
- B.
  
  Values
- C.
  
  Beliefs
- D.
  
  All of these
Correct Answer
D. All of these

Explanation
Informal organization is influenced and guided by norms, values, and beliefs. Norms are the unwritten rules and expectations that govern behavior within a group. Values are the principles and ideals that members of the group hold dear and use to guide their actions. Beliefs are the assumptions and convictions that individuals within the group hold to be true. All of these factors play a role in shaping the informal structure and dynamics of an organization.

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6.

Which organization is mainly built to satisfy one's social and psychological needs?
- A.
  
  Informal organization
- B.
  
  Formal organization
- C.
  
  Both
- D.
  
  None
Correct Answer
A. Informal organization

Explanation
An informal organization is mainly built to satisfy one's social and psychological needs. Unlike a formal organization, which is structured and governed by rules and regulations, an informal organization is formed based on personal relationships, shared interests, and common goals. It provides a platform for individuals to connect, socialize, and fulfill their emotional and social needs within the organization. This informal network often emerges spontaneously within a formal organization and can greatly impact the overall dynamics and culture of the workplace.

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7.

Which of these organizations is not personal?
- A.
  
  Formal
- B.
  
  Informal
- C.
  
  Both
- D.
  
  None
Correct Answer
A. Formal

Explanation
The term "personal" refers to something that is related to an individual's private life or personal matters. In this context, a formal organization is not personal because it is a structured and professional entity that operates according to specific rules and regulations, focusing on achieving organizational goals rather than individual interests. On the other hand, an informal organization is more personal as it is based on personal relationships and interactions among individuals. Therefore, the correct answer is "Formal" as it is the only option that does not align with the concept of personal.

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8.

Which of these organizations is useful for an employee?
- A.
  
  Formal
- B.
  
  Informal
- C.
  
  Both
- D.
  
  None
Correct Answer
C. Both

Explanation
Both formal and informal organizations can be useful for an employee. Formal organizations provide structure, clear roles, and established processes, which can help employees understand their responsibilities and work efficiently. They also offer opportunities for career growth and advancement. On the other hand, informal organizations consist of social networks, friendships, and informal communication channels. These networks can provide emotional support, mentorship, and access to valuable resources and information. Therefore, both types of organizations offer unique benefits and can contribute to an employee's success and well-being.

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9.

In which organization, management holds the authority?
- A.
  
  Informal
- B.
  
  Formal
- C.
  
  Both
- D.
  
  None
Correct Answer
B. Formal

Explanation
Formal organizations typically have a hierarchical structure with clear lines of authority and a defined chain of command. In such organizations, management holds the authority to make decisions, delegate tasks, and enforce policies and procedures. This authority is derived from the organization's formal structure and is based on designated roles and positions. On the other hand, informal organizations lack a formal structure and authority is not predetermined or officially assigned. Therefore, management does not hold the authority in informal organizations.

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10.

Formal or informal, which organizations are usually stable?
- A.
  
  Informal
- B.
  
  Formal
- C.
  
  Both are equally stable.
- D.
  
  Both are instable.
Correct Answer
B. Formal

Explanation
Formal organizations are usually stable because they have clear structures, hierarchies, and established rules and procedures. These organizations have defined roles and responsibilities, which helps in maintaining stability and order. Additionally, formal organizations often have long-term goals and strategies, which further contribute to their stability. On the other hand, informal organizations lack clear structures and may have fluid roles and relationships, leading to potential instability. Therefore, the correct answer is formal organizations.

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Current Version
Nov 16, 2023

Quiz Edited by
ProProfs Editorial Team
Nov 09, 2022

Quiz Created by
Keith Foster

Formal and informal organizations MCQ

In a formal organization, rules

Which of these statement is true about formal organization?

An informal organization is formed

Which type of organization follows the principle of scalar chain?

Informal organization is fun by

Which organization is mainly built to satisfy one's social and psychological needs?

Which of these organizations is not personal?

Which of these organizations is useful for an employee?

In which organization, management holds the authority?

Formal or informal, which organizations are usually stable?