Question

Differentiate between 'Formal Organization' and 'Informal Organization' on any six bases.

Hint:

Formal organizations are structured and rigid, while informal organizations arise through social interactions and offer flexibility.

Answer 1

The distinction between Formal and Informal Organization is as follows:

Formal Organization:

(i) Definition: A management-established hierarchy of authority.
(ii) Source: Emerges from company regulations and policies.
(iii) Authority: Derived from one's position within management.
(iv) Conduct: Governed by established rules.
(v) Characteristic: Inherently rigid.
(vi) Leadership: Managers serve as leaders.
(vii) Communication Path: Follows the established chain of command.

Informal Organization:

(i) Definition: A web of social connections formed through employee interaction.
(ii) Source: Arises from social engagement.
(iii) Authority: Stems from individual attributes.
(iv) Conduct: Lacks a defined behavioral framework.
(v) Characteristic: Inherently flexible.
(vi) Leadership: Leaders are not necessarily managers; they are chosen by the group.
(vii) Communication Path: Communication is not channeled through a predetermined route and can occur in any direction.