The informal organisation offers many benefits. Important among them are given below:

(A) Prescribed lines of communication are not followed. Thus, informal organisation leads to faster spread of information as well as quick feedback.

(B) It helps to fulfil the social needs of the members and allows them to find like-minded people. This enhances their job satisfaction since it gives them a sense of belongingness in the organisation

(C) It contributes towards fulfilment of organisational objectives by compensating for inadequacies in the formal organisation.

(D) Unity of command is maintained through an established chain of command.

Choose the correct answer from the options given below:

The correct answer is (A), (B) and (C) only.

An informal organisation emerges naturally within a formal organisational structure when people interact with each other. It consists of a network of personal and social relationships that are not established or required by the formal authority. Let us evaluate the given statements to understand why they represent the benefits of an informal organisation:

Statement (A): Faster Spread of Information and Quick Feedback
In an informal organisation, communication does not follow the rigid, officially prescribed channels or the formal chain of command (scalar chain). Instead, information flows in any direction through informal networks (often referred to as the grapevine). This lack of barriers leads to a much faster transmission of information and facilitates quick feedback.

Statement (B): Fulfilment of Social Needs and Job Satisfaction
Formal structures primarily focus on work relationships and tasks, often ignoring the social and psychological needs of employees. An informal organisation provides a platform for employees to interact, form friendships, and find like-minded people. This satisfies their social and affiliation needs, creating a sense of belongingness, which significantly enhances motivation and job satisfaction.

Statement (C): Compensating for Inadequacies of the Formal Organisation
The formal structure cannot anticipate or address every situation or need that arises within an organisation. The informal organisation helps fill these gaps. For example, informal collaborations can resolve issues more quickly than formal procedures, and informal feedback gives managers a realistic picture of employee sentiments, thereby contributing to the overall achievement of organisational goals.

Statement (D): Unity of Command
Unity of command is a principle of formal management which states that an employee should receive orders from, and be accountable to, only one supervisor. This is maintained strictly through the established, formal chain of command. In contrast, informal organisations do not have a defined hierarchy or a rigid chain of command. Therefore, maintaining the unity of command is a feature of a formal organisation, not a benefit of an informal one.

Based on this analysis, statements (A), (B), and (C) describe the benefits of an informal organisation, whereas statement (D) does not apply.