distinguish b/w formal and informal organisation?

Difference between Formal and Informal Organisation

Following are the differences between the formal and informal organisations:

Basis

Formal Organisation

Informal Organisation

Origination

It is originated with delegation of authority.

It originates automatically due to social relations.

Objectives

These are formed for organisational objectives.

These are formed for social satisfaction.

Relations

Members of these organisations have formal relations.

Members of these organisations have personal relations.

Structure

It has a well-defined structure.

It does not have a well-defined and clear cut structure.

Authority

Authority flows from top to bottom.

Authority flows from down to top or horizontally.

Period

These are long-term and enduring organisations.

These are short-term and instable organisations.

Dynamism

More rigid

More flexible

Leadership

Managers are leaders

Leaders are voluntarily chosen.

Nature

It is official organisation

It is sentimental organisation.

Communication

Communication is slow due to the following the chain of command.

Communication is quick and fast.

Examples

Committees, Project teams

Players, Travelers