On the other end, there is an informal organisation which is formed under the formal organisation as a system of social relationship, which comes into existence when people in an organisation, meet, interact and associate with each other. In this article excerpt, we are going to discuss the major differences between formal and informal organisation. Show
Content: Formal Organization Vs Informal Organization
Comparison ChartBasis for ComparisonFormal OrganizationInformal OrganizationMeaningAn organization type in which the job of each member is clearly defined, whose authority, responsibility and accountability are fixed is formal organization.An organization formed within the formal organization as a network of interpersonal relationship, when people interact with each other, is known as informal communication.CreationDeliberately by top management.Spontaneously by members.PurposeTo fulfill, the ultimate objective of the organization.To satisfy their social and psychological needs.NatureStable, it continues for a long time.Not stableCommunicationOfficial communicationGrapevineControl mechanismRules and RegulationsNorms, values and beliefsFocus onWork performanceInterpersonal relationshipAuthorityMembers are bound by hierarchical structure.All members are equal.SizeLargeSmallDefinition of Formal OrganizationBy the term formal organisation, we mean a structure that comes into existence when two or more people come together for a common purpose, and there is a legal & formal relationship between them. The formation of such an organisation is deliberate by the top level management. The organisation has its own set of rules, regulations, and policies expressed in writing. The basic objective of the establishment of an organisation is the attainment of the organisation’s goal. For this purpose, work is assigned, and authorities are delegated to each member and the concept of division of labour and specialisation of workers are applied and so the work is assigned on the basis of their capabilities. The job of each is fixed, and roles, responsibilities, authority and accountability associated with the job is clearly defined. In addition to this, there exists a hierarchical structure, which determines a logical authority relationship and follows a chain of command. The communication between two members is only through planned channels. Types of formal organization structure
Definition of Informal OrganizationAn informal organisation is formed within the formal organisation; that is a system of interpersonal relationships between individuals working in an enterprise, that forms as a result of people meet, interact and associate with one another. The organisation is created by the members spontaneously, i.e. created out of socio-psychological needs and urge of people to talk. The organisation is featured by mutual aid, cooperation, and companionship among members. In an informal organisation, there are no defined channels of communication, and so members can interact with other members freely. They work together in their individual capacities and not professional. There is no defined set of rules and regulations that govern the relationship between members. Instead, it is a set of social norms, connections, and interaction. The organisation is personal i.e. no rules and regulations are imposed on them, their opinions, feelings, and views are given respect. However, it is temporary in nature, and it does not last long. Key Differences Between Formal and Informal OrganizationThe difference between formal and informal organisation can be drawn clearly on the following grounds:
ConclusionAn informal organisation is just opposite of a formal organisation. The principal difference between these two is that all the members of a formal organisation follow a chain of command, which is not in the case of an informal organisation. Moreover, there exists a superior-subordinate relationship (status relationship) in the former, whereas such relationship is absent in the latter because all the members are equal (role relationship). What is informal organization chart?In an informal organizational structure, your business doesn't operate under the guidelines of a written document that spells out the rules, regulations and chain-of-command. Under this structure, your business operates by a system developed by your employees who have proven effective.
What is informal Organisation?The informal organisation may be defined as “a network of personal and social relationships that arise spontaneously as people associate with one another in a work environment. It is composed of all the informal groupings of people within a formal organisation.”
What is an informal organization example?Clubs or social networks are examples of informal organizations. Both types of organizations share many features in common, but they also have meaningful differences.
What is an informal organization what are its functions?The primary function of informal organizations is basically to maintain cultural values of people. When people can associate themselves with each other socially, they always feel a sense of togetherness. Consequently, another function of informal organizations is to provide social satisfaction to members.
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