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Key Differences Between Formal and Informal Organization
The difference between formal and informal organisation can be drawn clearly on the following grounds:
- Formal Organization is an organisation in which job of each member is clearly defined, whose authority, responsibility and accountability are fixed. Informal Organization is formed within the formal organisation as a network of interpersonal relationship when people interact with each other.
- Formal organisation is created deliberately by top management. Conversely, informal organisation is formed spontaneously by members.
- Formal organisation is aimed at fulfilling organisation’s objectives. As opposed to an informal organisation is created to satisfy their social and psychological needs.
- Formal organisation is permanent in nature; it continues for a long time. On the other hand, informal organisation is temporary in nature.
- The formal organisation follows official communication, i.e. the channels of communication are pre-defined. Unlike informal organisation, the communication flows in any direction.
- In the formal organisation, the rules and regulations are supposed to be followed by every member. In contrast to informal communication, there are norms, values, and beliefs, that work as a control mechanism.
- In the formal organisation, the focus is on the performance of work while in the case of an informal organisation, interpersonal communication is given more emphasis.
- The size of a formal organisation keeps on increasing, whereas the size of the informal organisation is small.
- In a formal organisation, all the members are bound by the hierarchical structure, but all the members of an informal organisation are equal.
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Zeenat Anees 7 years, 2 months ago
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