WePharma,Inc. ,a biopharmaceutical company,develops targeted therapies for the treatment of cancer and inflammatory diseases.Mara Alarcon,the CEO of the company,insists that employees communicate only through formal channels.Despite these restrictions,she observes many informal networks within the organization.Which one of the following is the most likely reason for establishment of these informal networks?
A)WePharma takes employee suggestions very seriously.
B)WePharma lacks the necessary rules and regulations to control employees.
C)WePharma has a vertical organizational structure.
D)WePharma does not freely share information with its employees.
E)WePharma promotes an open-door policy.

Question

Quizplus · Accepted Answer

Informal networks often emerge in organizations where formal communication channels do not meet the employees' needs for information. If WePharma does not freely share information with its employees, it's likely that employees will seek out or create informal networks to obtain the information they need to do their jobs effectively.