Distinguish between Formal and Informal organisations (give any t… - Vidyadip

Question

Distinguish between Formal and Informal organisations (give any three points).

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Answer

S. No.	Basis of Difference	Formal Organisation	Informal Organisation
1.	Meaning	An organisation created by themanagement in the form ofstructure of authority is calledformal organisation.	An organisation born out of mutual relations is called informal organisation and it emerges automatically.
2.	Origin	It is established because of the rules and policies of the organisation.	It is established because of social relationship.
3.	Authority	Authority is born out of the postsestablished in the organisation and moves downwards.	Authority comes into existence because of individual virtues. Authority moves downwards or it can be horizontal.

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