Question

Once authority has been delegated, formal relationships
are created, where individuals know who works under whom, what the span of
control is and what status one holds in the firm. On the other hand, informal
relationships will also develop within the firm.
paraphrase into one sentence using simple vocabulary

Answer 1

When authority is given to someone, clear roles and relationships are formed in the company, showing who reports to whom and their level of importance, while informal connections among employees also arise.