This article will help you to learn about the difference between formal organisations and informal organisations.
Differences between Formal Organisations and Informal Organisations
Difference – Formal Organisation
Difference – 1. Structure
Formally structured authority-responsibility relationships.
Difference – 2. Emphasis:
Official authority-responsibility structure.
Difference – 3. Power:
It is attached to position.
Difference – 4. Chain of command:
The chain is respected and authority is delegated by the top management.
Difference – 5. Goals:
Organisational goals are considered important.
Difference – 6. Stability:
They are stable; not affected by incomings and outgoings of organisational members.
Difference – 7. Flexibility:
Not flexible; cannot be easily changed. Members interact with each other on the basis of their job positions.
Difference – 8. Social acceptance:
They arise out of formal authority- responsibility structure
Difference – 9. Formation:
They are deliberately created by managers.
Difference – 10. Objective (Purpose):
They are formed to achieve formal organisational goals
Difference – 11: Flow of authority:
Authority vests with managers. It flows from top to bottom.
Difference – 12. Behaviour of Member:
Behaviour of members is governed by norms and standards framed by managers.
Difference – 13. Leadership:
Managers act as leaders by virtue of the official positions.
Difference – 14. Governance:
Its working is governed by rules and regulations.
Difference – 15. Control:
They are subject to strict measures of control.
Difference – 16. Communication:
Official communication channel. It is vertical in direction.
Difference – 17. Interactions:
People interact on the basis of authority, responsibility and accountability.
Difference – 18. Winding Up:
It winds up according to legal procedures.
Difference – Informal Organisation
Difference – 1. Structure:
Spontaneous reaction to formally structured organisation. No formal structure.
Difference – 2. Emphasis:
People and their relationships.
Difference – 3. Power:
It is attached to person.
Difference – 4. Chain of Command:
The authority comes from personal knowledge and skills of group leaders and is given by the group itself.
Difference – 5. Goals:
Individual goals may clash with organisational goals.
Difference – 6. Stability:
Change in members can lead to instability.
Difference – 7. Flexibility:
Highly flexible.
Difference – 8. Social Acceptance:
They arise out of social norms of acceptance and recognition.
Difference – 9. Formation:
They are created by members to achieve their personal goals.
Difference – 10. Objective (purpose):
Their objective is to achieve social satisfaction.
Difference – 11. Flow of authority:
Authority vests with the elected leaders. Leaders may be senior or junior to the members. Authority flows from leaders to followers.
Difference – 12. Behaviour of members:
Behaviour of members is governed by norms and standards framed by group members.
Difference – 13. Leadership:
Leaders are voluntarily chosen by members.
Difference – 14. Governance:
There are no fixed rules. Group norms govern their functioning.
Difference – 15. Control:
Group norms and values are the controlling measures.
Difference – 16. Communication:
Unofficial communication channel. It flows in vertical and horizontal directions.
Difference – 17. Interactions:
People interact on the basis of power and social status.
Difference – 18. Winding up:
It winds up at the will of members.