In organizational theory, which of the following statements regarding the characteristics of a formal organization structure is/are accurate? 1. Authority and decision-making rights are officially delineated by job designations and managerial positions. 2. Official channels of communication strictly follow the established scalar chain and reporting hierarchy. Select the correct option from the choices given below:

Analysis of Statement 1 (Correct): Positional Authority: In a formal organization, authority is legalistic and tied directly to the formal position, designation, or role within the structural chart rather than to the individual person. The organizational hierarchy clearly defines what power, duties, and responsibilities accompany each job profile. Analysis of Statement 2 (Correct): Scalar Chain & Formal Channels: Formal organizations rely on prescribed paths of communication along the chain of command (scalar chain). Directives, policies, and feedback flow systematically upwards and downwards through formal hierarchical channels to maintain order and accountability. Conclusion: Since both statements describe fundamental attributes of formal organizational design, Both Statement (1) and Statement (2) is the correct choice