Define informal organisation. State six points of difference between formal and informal organisations.

Define informal organisation. State six points of difference between formal and informal organisations.

Answer – Formal organisation is the deliberately created official structure of duties, authority and relationships. Informal organisation is the network of social and personal relationships that develops spontaneously among people at work.

Basis

Formal

Informal

Origin

Deliberately created by management.

Develops spontaneously through interaction.

Purpose

Organisational objectives.

Social satisfaction and shared interests.

Authority

Comes from the official position.

Comes from personal acceptance and influence.

Behaviour

Guided by prescribed rules.

Guided by group norms.

Communication

Follows prescribed channels.

Flows freely through personal contacts.

Structure

Defined and relatively stable.

Flexible and less clearly defined.

Leadership

Appointed through formal roles.

Emerges through group acceptance.

error: