Question

Interaction among people at work gives rise to a network of social relationships among employees called___.

• A. Informal organization
• B. Formal organization
• C. Functional organization
• D. Divisional organization

Answer 1

The Correct Option is A

The interaction among people at work gives rise to a network of social relationships among employees. This phenomenon is encapsulated by a concept known in business studies as the informal organization. Here's how it functions in a workplace setting: 

1. An informal organization emerges naturally among employees as they engage in conversations, collaborations, and social exchanges that are not governed by the official structure or hierarchy.
2. It represents the interpersonal relationships that develop spontaneously, driven by personal interests, friendships, and shared feelings.
3. Unlike the formal organization that follows specific rules, job descriptions, and hierarchies, the informal organization flows from social interactions, creating a network that can influence communication and decision-making within the company.
4. This network helps in creating a sense of belonging, improves morale, and often leads to increased cooperation among employees beyond what is formally required.

Thus, the correct option for the network of social relationships formed at work is the informal organization.

Answer 2

An informal organization refers to the network of personal and social relationships that develop naturally among employees at the workplace, based on mutual interactions rather than formal structures. These relationships often form through common interests, friendships, or shared experiences, and they play a key role in enhancing communication, collaboration, and morale in the workplace.