4. It refers to the organisation structure deliberately
created by management for achieving the objectives
of enterprise.
It is a network of official authority responsibility
relationships and communication follows.
It is an official and rational structure.
5. According to Chester Bernard, “Formal organisation
is a system of consciously coordinated activities of two
or more persons towards a common objectives. The
essence of formal organisation is conscious common
purpose and formal organisation comes into existence
when persons (A) are able to communicate with each
other (B) are willing to act and (C) share a purpose.”
6. It refers to the pattern of activity interactions and
human relationship which emerge spontaneously
due to social and psychological forces operating at
the work place.
It arises naturally on the basis of friendship or some
common interest which may or may not be related
with work.
7. According to Chester Bernard, “ Informal organisation
is joint personal activity with out conscious common
purpose though contributing to joint result.”
8. Origin
Formal organistion is created delebrately and consoiusly by
management.
Informal organisation emerges spontaneously on account of
socio psychological forces operating at the work place.
Purpose
Formal Organisation is created for achieving the legitimate
objective of the organisation.
Informal Organisation is created by the members of the
organisation for their social and psychological satisfaction.
9. Size
Formal group may be quite large in size.
Informal groups tent to be small.
Nature of Group
Formal groups are stable and may continue for a very
long period of time.
Informal groups were quite unstable in nature.
10. Number of Group
Generally the number of informal group is greater
than the number of the formal group
Authority
Formal organisation is bound together by a
hyrarchiechal structure.
In Informal organisation all members are equal
11. Behavior of Members
In formal organisation behavior of the members were
governed by formal rules and regulations
In the informal organisation the behavior of the
members is governed by norms beliefs and value of
the group
12. Communication
In formal organisation, communication normally flows
through the prescribed chain of command.
In informal organisation communications pass through the
informal channels.
Abolition
Management can abolish the formal groups at any time.
Management has no control over informal groups which are
the creation of natural desire of human beings to interact.
13. Leadership
In informal organisation, leadership is vested in managers.
In informal organisation, leadership is not associated with
managership.
Status
There are sharp status differentials among the members of
formal organisation, which inhibit free interaction and
socialisation.
In informal organisation there may be social ranking among
people but these do not prevent free interaction among
people.