FORMAL ORGANIZATION

Meaning: Formal organization refers to the structure of well defined jobs in a formally organized enterprise. These jobs are defined in terms of authority, responsibility and accountability.

INFORMAL ORGANIZATION

Meaning : The network of social groups based

on friendship is called informal organization. Here human beings wish to share feelings, emotions,

DIFFERENCE BETWEEN

FORMAL AND INFORMAL

ORGANIZATION

BASIS FORMAL ORGANIZATION

INFORMAL ORGANIZATION

FORMATION Formal relations are well defined

and create deliberately.

Originates as a result of social

interaction.

BASIS FORMAL ORGANIZATION

INFORMAL ORGANIZATION

PURPOSE It is created to achieve

predetermined objectives.

It will, satisfy social and

cultural needs.

BASIS FORMAL ORGANIZATION

INFORMAL ORGANIZATION

STRUCTURE Structure of well defined authority and responsibility

relationships.

Structure based on human

emotions and sentiments.

BASIS FORMAL ORGANIZATION

INFORMAL ORGANIZATION

BEHAVIOR OF MEMBERS

It has prescribed pattern of

behavior of members.

Social norms are developed

through mutual consent of members.

BASIS FORMAL ORGANIZATION

INFORMAL ORGANIZATION

COMMUNICATION Formal communication through official

lines.

Informal communicatio

n based on convenience.

BASIS FORMAL ORGANIZATION

INFORMAL ORGANIZATION

LEADERSHIP Managers are in superior position.

Leaders are chosen by group

members.

BASIS FORMAL ORGANIZATION

INFORMAL ORGANIZATION

STABILITY It is usually stable and

continues even if members

leave it.

The life of informal groups

is short and disintegrate if

members leave it.

BASIS FORMAL ORGANIZATION

INFORMAL ORGANIZATION

FLEXIBILITY It follows a rigid structure.

It is loosely structured and highly flexible.

BASIS FORMAL ORGANIZATION

INFORMAL ORGANIZATION

ADHERENCE TO RULES

Strict adherence to

rules.

No formal rules exist.

BASIS FORMAL ORGANIZATION

INFORMAL ORGANIZATION

INTERDEPENDENCE It exists independently.

It is dependable to

formal organization.