Formal Organization vs Informal Organization: A Comparative View - QS Study
QS Study

Formal organization vs informal organization: A Comparative view

Formal organization

  • Meaning: Structure of authority relationships created by the management.
  • Origin: Arises as a result of company rules and policies.
  • Authority: Arises by virtue of position in management
  • Behavior: It is directed by rules
  • Flow of Communication: Communication takes place through the scalar chain
  • Nature: Rigid
  • Leadership: Managers are leaders.

Informal organization

  • Meaning: Network of social relationships arising out of interaction among employees.
  • Origin: Arises as a result of social interaction.
  • Authority: Arises out of personal qualities
  • Behavior: There is no set behavior pattern
  • Flow of Communication: Flow of communication is not through a planned route. It can take place in any direction
  • Nature: Flexible
  • Leadership: Leaders may or may not be managers. They are chosen by the group.