| Formal organisation | Informal organisation |
| (1) It is deliberately created by top-level management. | (1) It arises automatically as a result of social interaction among the employees. |
| (2) It has a predetermined purpose. | (2) It has no pre - determined purpose. |
| (3) It is highly rigid. | (3) It is more flexible. |
| (4) Communication is allowed through the scalar chain. | (4) Communication is allowed through all channels networks. |
| (5) Managers are leaders. | (5) Leaders are chosen voluntarily by the members. |
| (6) It is based on authority and responsibility. | (6) There is no authority and responsibility relationship. |