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This article will help you to differentiate between formal organisations and informal organisations.
Difference # Formal Organisation:
1. Structure
Formally structured authority-responsibility relationships.
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2. Emphasis:
Official authority-responsibility structure.
3. Power:
It is attached to position.
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4. Chain of command:
The chain is respected and authority is delegated by the top management.
5. Goals:
Organisational goals are considered important.
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6. Stability:
They are stable; not affected by incomings and outgoings of organisational members.
7. Flexibility:
Not flexible; cannot be easily changed. Members interact with each other on the basis of their job positions.
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8. Social acceptance:
They arise out of formal authority- responsibility structure
9. Formation:
They are deliberately created by managers.
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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.
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12. Behaviour of Member:
Behaviour of members is governed by norms and standards framed by managers.
13. Leadership:
Managers act as leaders by virtue of the official positions.
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14. Governance:
Its working is governed by rules and regulations.
15. Control:
They are subject to strict measures of control.
16. Communication:
Official communication channel. It is vertical in direction.
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17. Interactions:
People interact on the basis of authority, responsibility and accountability.
18. Winding Up:
It winds up according to legal procedures.
Difference # Informal Organisation:
1. Structure:
Spontaneous reaction to formally structured organisation. No formal structure.
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2. Emphasis:
People and their relationships.
3. Power:
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.
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5. Goals:
Individual goals may clash with organisational goals.
6. Stability:
Change in members can lead to instability.
7. Flexibility:
Highly flexible.
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8. Social Acceptance:
They arise out of social norms of acceptance and recognition.
9. Formation:
They are created by members to achieve their personal goals.
10. Objective (purpose):
Their objective is to achieve social satisfaction.
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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.
13. Leadership:
Leaders are voluntarily chosen by members.
14. Governance:
There are no fixed rules. Group norms govern their functioning.
15. Control:
Group norms and values are the controlling measures.
16. Communication:
Unofficial communication channel. It flows in vertical and horizontal directions.
17. Interactions:
People interact on the basis of power and social status.
18. Winding up:
It winds up at the will of members.