ACCA Accountant In Business (F1) Certification Practice Exam 2026 - Free Accountant Practice Questions and Exam Study Guide

The organization characterized by personal and social relationships is informal. In this context, informal organizations develop naturally as individuals interact and build connections within a workplace or community. These relationships are often based on personal interests, social interactions, and shared experiences, rather than formal structures or rules.

Informal organizations play a crucial role in influencing workplace culture, fostering communication, and facilitating collaboration. They can enhance morale and teamwork, even though they may not have an official status or recognition within the formal hierarchy.

In contrast, formal organizations are structured and governed by official rules, procedures, and assigned roles. Stakeholder organizations focus specifically on various parties with an interest in performance outcomes, and hierarchical organizations are defined by clearly established levels of authority and responsibility. These types of organizations do not emphasize personal and social relationships in the same way that informal organizations do.