Question
Explain the difference between Formal and Informal Organization.
| Sr. No. | Point of Difference | Formal Organization | Informal Organization |
| $1.$ | Formation | This organization id formed formally for a specific purpose. | This organization is formed by groups based on social relationship among employees. |
| $2.$ | Objective | It is formed to achieve predetermined goal of the unit. | The main objective is to satisfy social and cultural needs of the employees. |
| $3.$ | Size | The formal organization is having large size. | The size of informal organization is small. |
| $4.$ | Membership | The management decides membership and authority. | The membership is unanimously decided by group members. |
| $5.$ | Stability | The formal organization is stable with little flexibility. | The membership is unanimously decided by the group members. |
| $6.$ | Communication | The communication is formal and specific. | The structure of informal organization is unstable and changes are often. |
| $7.$ | Control | The structure id methodically planned so control is easily maintained. | As employees develop the group as per their needs so no control can be maintained. |
| $8.$ | Base | It is established on the basis of division of authority and responsibility. | It is created on the basis of human relations. |
| $9.$ | Belief | The functions done by formal organization get recognition authorative. | The functions performed by informal organization do not get authority’s recognition from outsider parties. |
| $10.$ | Independence | Formal organization holds independent and important place in business. | Informal organization holds subsiding existence and is dependent n formal organization. |
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