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 : T he 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 communication 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.