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Answer» Difference between format and informal organization. | Basis of comparison | Formal organization | Informal organization | | 1. Formation | Formed systematically with proper guidelines | Formed informally by members while working in the organization and interacting with each other | | 2. Objective | To fulfill business goals | To satisfy social and psychological needs | | 3. What is it? | A systematic organization | A group of like minded people | | 4. Size | Members of the entire organization | Small sized on the basis of like mindedness of employees | | 5. Nature | Stable. Continues for a long time | Unstable and keeps on changing | | 6. Control mechanism | Controlled through rules and regulations of the organization | Controlled through values and beliefs of the associated people | | 7. Focus on | Work performance | | | 8. Authority | Members follow the authority as decided by the hierarchy of the organization | Inter personal relationships All members have equal authority |
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