This article will help you to differentiate between formal organisations and informal organisations.
Difference # Formal Organisation:
Formally structured authority-responsibility relationships.
Official authority-responsibility structure.
It is attached to position.
4. Chain of command:
The chain is respected and authority is delegated by the top management.
Organisational goals are considered important.
They are stable; not affected by incomings and outgoings of organisational members.
Not flexible; cannot be easily changed. Members interact with each other on the basis of their job positions.
8. Social acceptance:
They arise out of formal authority- responsibility structure
They are deliberately created by managers.
10. Objective (Purpose):
They are formed to achieve formal organisational goals
11: Flow of authority:
Authority vests with managers. It flows from top to bottom.
12. Behaviour of Member:
Behaviour of members is governed by norms and standards framed by managers.
Managers act as leaders by virtue of the official positions.
Its working is governed by rules and regulations.
They are subject to strict measures of control.
Official communication channel. It is vertical in direction.
People interact on the basis of authority, responsibility and accountability.
18. Winding Up:
It winds up according to legal procedures.
Difference # Informal Organisation:
Spontaneous reaction to formally structured organisation. No formal structure.
People and their relationships.
It is attached to person.
4. Chain of Command:
The authority comes from personal knowledge and skills of group leaders and is given by the group itself.
Individual goals may clash with organisational goals.
Change in members can lead to instability.
8. Social Acceptance:
They arise out of social norms of acceptance and recognition.
They are created by members to achieve their personal goals.
10. Objective (purpose):
Their objective is to achieve social satisfaction.
11. Flow of authority:
Authority vests with the elected leaders. Leaders may be senior or junior to the members. Authority flows from leaders to followers.
12. Behaviour of members:
Behaviour of members is governed by norms and standards framed by group members.
Leaders are voluntarily chosen by members.
There are no fixed rules. Group norms govern their functioning.
Group norms and values are the controlling measures.
Unofficial communication channel. It flows in vertical and horizontal directions.
People interact on the basis of power and social status.
18. Winding up:
It winds up at the will of members.