Multiple choice

To Chester Barnard, the following statement can be attributed:

  1. formal organization is less important than informal organization

  2. both formal and informal organizations are important

  3. formal organization remains more important than informal organization

  4. formal organizations play a key role in administrative effectiveness
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Chester Barnard emphasized that both formal and informal organizations are essential and coexist within any enterprise. He argued that informal organizations (social groups) facilitate communication and cohesion, which supports the formal structure's goals. Therefore, neither can be viewed in isolation for effective administration.

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