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

Solution

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.