Which concept refers to the formal arrangement of tasks and reporting relationships designed to achieve a common objective?

• A. Division of Labor
• B. Formal Organization
• C. Informal Organization
• D. Group Cohesiveness

Answer: (B)

The formal organization refers to the official arrangement of tasks and reporting relationships that coordinates people and resources toward a common objective. It defines who does what, who reports to whom, and how decisions flow, often captured in an organizational chart, job descriptions, and documented procedures. This structure provides clarity, accountability, and a predictable way to plan, control, and coordinate activities across the organization.

Division of labor is about assigning specialized tasks, informal organization covers unwritten relationships and social networks, and group cohesiveness describes the unity within a group. The formal organization is the overarching framework that ties tasks to specific roles and reporting lines to achieve the objective.