Read this article to learn about the difference between Formal and Informal Organistion.
# Formal Organisation:
1. Purpose:
A formal organisation is created for the fulfilment of technical objective.
2. Degree of Rigidity:
It follows predetermined rules as to lines of authority and responsibility.
3. Flow of Authority:
Under formal organisation, formal authority is from upward to downward.
4. Size:
The size of formal organisation may be large.
5. Structure:
In formal organisation, organisation charts are prepared.
6. Communication:
A formal organise action establishes official lines of communication.
7. Leadership:
Managers are leaders by virtue of their superior position.
8. Examples:
Committees, teams, etc.
Informal Organisation:
1. Purpose:
An informal organisation is created for social satisfaction.
2. Degree of Rigidity:
There is no such rules in an informal organisation.
3. Flow of Authority:
Under this type of organisation, informal authority flows from upward or horizontally.
4. Size:
Generally, informal organisation of small size.
5. Structure:
In formal organisation, it is not necessary to prepare organisation chart.
6. Communication:
Informal communication based on convenience.
7. Leadership:
Leaders are chosen voluntarily by members.
8. Examples:
Relationship between piligrims, travellers, etc.