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. |