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. |
Distinguish between ‘Formal’ and ‘Informal’ organisations.
“Informal organisation is considered better than formal organisation”. Do you agree with this statement? Give reasons.
Name the organisation which has the limitation of ‘resisting Change’.
How will it be appropriate to say that the attitude of management towards informal organisation should be positive?