Formal organisation refers to that organisation which is properly planned in a systematic manner and all works are completed in a systematic way. In formal organisation every individual is assigned a fixed authority or decision making. In formal organisation their is a relationship between superiors and subordinated and the purpose of formal organisation is to achievement of goal of an organisation.
According to Chester Banard “an organization is formal when the activities are coordinated towards a common objective”.
The informal organisation refers to that organisation in which their is not systematic way of doing work, it can be done in any manner and the main purpose of informal is to getting psychological satisfaction. It can be created automatically without any efforts and their is fast communication in informal organisation. It is basically goal-oriented entity that exist to accurate the efforts of individuals.
Difference between Formal and Informal Organization with its comparison.
|Meaning||Formal organization means that which carry systematically||Informal organization get created automatically but not systematized.|
|Behavior of members||In formal organisation behavior of member is decided by managers.||In informal organisation their is no control of members behavior.|
|Stability or Duration||Formal organisational structure is more stable and durable.||It is not more stable and durable.|
|Communication||The information passes through scalar chain and systematic way of communication||Their is not fixed way of communication|
|Controls||Rules and regulation||Norms and values|
|Purpose||The purpose of formal organisation is to work in systematic way and achieve organisational goal.||The main purpose of informal organisation is to get psychological satisfaction.|
So we will discuss about Difference between Formal and Informal Organization with its comparison. For any query comment below.