Discuss the Differences Between a Formal and an Informal Organization
A formal organization is created deliberately by management to achieve organizational goals.
An informal organization develops naturally through interactions among employees.
The main differences are discussed below:
Formation
A formal organization is created intentionally by management.
An informal organization develops naturally among employees.
Purpose
A formal organization exists to achieve organizational objectives.
An informal organization exists to satisfy social and personal needs.
Structure
A formal organization has a planned and defined structure.
An informal organization has no fixed or planned structure.
Authority
In a formal organization, authority comes from official positions.
In an informal organization, influence comes from personal relationships.
Communication
Formal communication follows official channels.
Informal communication follows unofficial channels.
Rules and Procedures
A formal organization operates according to written rules and procedures.
An informal organization follows unwritten norms and customs.
Relationships
Relationships in a formal organization are official and impersonal.
But the relationships in an informal organization are personal and social.
Leadership
Leaders in a formal organization are officially appointed.
Leaders in an informal organization emerge naturally.
Documentation
A formal organization is shown in organizational charts and documents.
An informal organization is not officially documented.
Stability
A formal organization is relatively stable.
An informal organization changes as people and relationships change.
Conclusion
The formal organization is based on official authority, rules, and responsibilities. The informal organization is based on personal relationships and social interaction. Both play an important role in the success of an organization.
