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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.

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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?


“Informal organisation is considered better than formal organisation”. Do you agree with this statement? Give reasons.


Distinguish between ‘formal organisation’ and ‘informal organisation’ on the basis of (i) Meaning, (ii) Origin, (iii) Authority and (iv) Behaviour.


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