Difference between Formal Informal organisation

Answer»

Basis	Formal Organisation	Informal Organisation
1. Meaning	If refers to the structure of well-defined authority and responsibility.	It refers to the network of social relationships which develop automatically
2. Nature	Rigid & Stable	Flexible and unstable
3. Authoriy	Arises by virtue of position in management.	Arises out of personal qualities.
4. Adherence to rules	Violation of rules may lead to penalties and punishments.	No such punishments.
5. Flow of communication	Takes place through the scalar chain.	Not through a planned route. It can take place in any direction.
6. Purpose	To achieve planned organizational objectives	To satisfy social and cultural needs and fulfil common interest.

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