Home › CBSE Class 12 (Commerce) › Business Studies › Organising › In an informal organisation, authority arises ou…
In an informal organisation, authority arises out of what?
AWritten company rules
BChain of command
CPersonal qualities
DPosition in management
Answer & Solution
Correct answer: C. Personal qualities
Informal authority stems from personal qualities, whereas formal authority comes from managerial position.
Related questions
Organising is described as a means of translating what into action?Where do decisions travel faster because approval from many levels is not needed?Which benefit of decentralisation promotes self-reliance among subordinates?Can any organisation be completely centralised or completely decentralised?What would complete centralisation of all decisions at the apex make unnecessary?Under decentralisation, where is decision making authority placed?In which type of organisation does decision making authority lie with top management?Delegation of authority establishes which relationships in the hierarchy?