Differentiate between Informal and Formal
Organisation.
BASIS
FORMAL
ORGANISATION
INFORMAL
ORGANISATION
Meaning
Refers to the relationship
between authorities as
defined by the management.
Refers to the relationship
based on personal and
informal relationships among
the employees.
Origin
The structure originates from
the rules and policies of the
management.
The structure originates from
social interactions among the
employees.
Authority
Defined by the profile and
managerial positions.
Defined by the personal
qualities of the employees.
Flow of Communication
Flows through the scalar
chain.
No planned route of
communication is followed.
Nature
Rigid.
Flexible.
