Read this article to learn about the difference between Formal and Informal Organistion.


# Formal Organisation:

1. Purpose:

A formal organisation is created for the fulfilment of technical objective.

2. Degree of Rigidity:

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It follows predetermined rules as to lines of authority and responsibility.

3. Flow of Authority:

Under formal organisation, formal authority is from upward to downward.

4. Size:

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The size of formal organisation may be large.

5. Structure:

In formal organisation, organisation charts are prepared.

6. Communication:

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A formal organise action establishes official lines of communication.

7. Leadership:

Managers are leaders by virtue of their superior position.

8. Examples:

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Committees, teams, etc.


Informal Organisation:

1. Purpose:

An informal organisation is created for social satisfaction.

2. Degree of Rigidity:

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There is no such rules in an informal organisation.

3. Flow of Authority:

Under this type of organisation, informal authority flows from upward or horizontally.

4. Size:

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Generally, informal organisation of small size.

5. Structure:

In formal organisation, it is not necessary to prepare organisation chart.

6. Communication:

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Informal communication based on convenience.

7. Leadership:

Leaders are chosen voluntarily by members.

8. Examples:

Relationship between piligrims, travellers, etc.