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 differences between Formal Organization and Informal Organization are: Formal Organization:
(i) Meaning: It is a structure of authority relationships created by management.
(ii) Origin: It arises as a result of company rules and policies.
(iii) Authority: It arises out of position in management.
(iv) Behavior: It is directed by rules.
(v) Nature: It is rigid in nature.
(vi) Leadership: Managers are leaders.
(vii) Flow of Communication: Communication takes place through the scalar chain.
Informal Organization:
(i) Meaning: It is a network of social relationships arising out of interaction among employees.
(ii) Origin: It arises as a result of social interaction.
(iii) Authority: It arises out of personal qualities.
(iv) Behavior: There is no set behavior pattern.
(v) Nature: It is flexible in nature.
(vi) Leadership: Leaders may or may not be managers. They are selected by the group.
(vii) Flow of Communication: Flow of communication is not through a planned route. It can take place in any direction.