Distinguish between ‘Formal’ and ‘Informal’ organisations.
|
Basis of Difference |
Formal Organisation |
Informal Organisation |
|
1. Behaviour |
Behaviour is pre-determined. It means that it is known before hand who will do what and how will he do it; who will be the boss and who will be the subordinate. |
Behaviour depends on individual attachment which means it is not pre-determined. |
|
2. Flow of Communication |
Communication is defined. It moves according to the scalar chain of authority. |
Communication is not defined. It can move in any direction. |
|
3. Nature |
It is more stable. Forecasting is possible in it. |
It is temporary and less stable. Forecasting is not possible in it. |
|
4. Leadership |
Because of their high ranks, the managers are the leaders. |
The leader is elected. |
“Informal organisation is considered better than formal organisation”. Do you agree with this statement? Give reasons.
Yes, I do agree with this statement. It can be clarified with the help of advantages of informal organisation and limitations of formal organisation.
Advantages of Informal Organisation:
(i) Effective Communication: In the absence of any definite course, it is an effective system of communication. Messages can be quickly conveyed from one place to another with the help of this system.
(ii) Fulfills Social Needs: In the informal organisation, people having similarity of thoughts and ideas form a group of their own. All the people in the group stand by one another in all the organisational or personal matters.
(iii) Fulfills Organisational Objectives: In the informal organisation, the subordinates put their ideas before the superiors without any fear or hesitation. It helps the superiors to understand their difficulties and immediate solution of the problem is sought out. Since the problems are easily solved it becomes easier to achieve the objectives of the organisation.
Limitations of Formal Organisation:
(i) Delay in Work: Every activity is bound by rules which causes unnecessary delay in the completion of work.
(ii) Lack of Initiative: In this organisation, the employees have to do what they are asked to do and they do not have a chance of some independent thinking. This, therefore, kills initiative.
(iii) Mechanisation of Relations: The relationship of all the people are defined. This leaves no chance of any mutual interplay and thus the knowledge of other people and their experience cannot be exploited.
Hence, it can be said that informal organisation is better than formal organisation.
How will it be appropriate to say that the attitude of management towards informal organisation should be positive?
No doubt, formal organisation is helpful in attaining the objectives of the enterprise very easily but it has its limitations as well. On the other hand, the informal organisation is not less important if used properly. This can be made clear through the help of limitations of formal organisation and advantages of informal organisation.
Limitations of Formal Organisation:
(i) Delay in Work: Every activity is bound by rules which causes unnecessary delay in the completion of work.
(ii) Lack of Initiative: In this organisation, the employees have to do what they are asked to do and they do not have a chance of some independent thinking. This, therefore, kills initiative.
(iii) Mechanisation of Relations: The relationship of all the people are defined. This leaves no chance of any mutual interplay and thus the knowledge of other people and their experience cannot be exploited.
Advantages of Informal Organisation:
Following are the advantages of Informal Organisation:
(i) Effective Communication: In the absence of any definite course, it is an effective system of communication. Messages can be quickly conveyed from one place to another with the help of this system.
(ii) Fulfills Social Needs: In the informal organisation, people having similarity of thoughts and ideas form a group of their own. All the people in the group stand by one another in all the organisational or personal matters.
(iii) Fulfills Organisational Objectives: In the informal organisation, the subordinates put their ideas before the superiors without any fear or hesitation. It helps the superiors to understand their difficulties and immediate solution of the problem is sought out. Since the problems are easily solved it becomes easier to achieve the objectives of the organisation.
Hence, it will be appropriate to say that the attitude of management towards informal organisation should be positive.
Name the organisation which has the limitation of ‘resisting Change’.
Informal organisation.
Distinguish between ‘formal organisation’ and ‘informal organisation’ on the basis of (i) Meaning, (ii) Origin, (iii) Authority and (iv) Behaviour.
Difference between Formal and Informal Organisations:
|
Basis of Difference |
Formal Organisation |
Informal Organisation |
|
1. Meaning |
An organisation created by the management in the form of structure of authority is called formal organisation. |
An organisation bom out of mutual relations is called informal organisation and it emerges automatically. |
|
2. Origin |
It is established because of the rules and policies of the organisation. |
It is established because of social relationship. |
|
3. Authority |
Authority is born out of the posts established in the organisation and moves downwards. |
Authority comes into existence because of individual virtues. Authority moves downwards or it can be horizontal. |
|
4. Behaviour |
Behaviour is pre-determined. It means that it is known before hand who will do what and how will he do it; who will be the boss and who will be the subordinate. |
Behaviour depends on individual attachment which means it is not pre-determined. |
Switch
