Distinction between formal and informal organizations

Posted by Muhammad Jakirul Haque Talukder on Wednesday, May 28, 2014 | 0 comments

The points of distinction between formal and informal organization have been tabulated below:

Sl. No
Formal Organizations
Informal Organizations
1. It is consciously and deliberately created
It arises spontaneously
Authority and responsibility are
vital for its functioning
It is only personal factors such as friendship, affinity, trust and confidence that are important.
Rules and procedures are important
Personal relationship between individual is more important.
It can be shown on the organization chart
It cannot be shown
Authority flows downwards and responsibility flows upwards.
There is no flow of authority and responsibility.
It is deliberately created only to attain the enterprise objectives.
It is created to fulfill the social needs of an individual. How-ever, it may also contribute to the enterprise goal.
Designations and official positions are very important
Designations and official positions are unimportant.
 It is permanent and stable.
 It is unstable.

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