What is formal organisation structure? How is it different from i… - Vidyadip

Question

What is formal organisation structure? How is it different from informal organisation on the basis of flow of authority?

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Answer

The organisational structure designed and established by management is called formal organisation. It is an official set up to achieve certain goals. It is a system of clearly defined activities and relationships which are intended to divide and integrate the activities of the organisation.
Flow of authority: Authority flows from top to bottom in formal organisations. Its direction is downward. In informal organisation, flow of authority is vertical, horizontal as well as diagonal, i.e., it can flow in all directions.

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