Question

Differentiate between formal organization and informal organization on any four bases.

Accepted Answer

Differences between formal organization and informal organization are: Basis Formal organization Informal organization Meaning It is a structure of authority relationships created by the management. It is a network of social relationships arising out of interaction among employees. Origin It arises as a result of company rules and policies. It arises as a result of social interaction. Authority It arises by virtue of position in management. It arises out of personal qualities. Behaviour It is directed by rules. There is no set behaviour pattern. Flow of Communication Communication takes place through the scalar chain. Flow of communication is not through a planned route. It can take place in any direction. Nature It is rigid. It is flexible. Leadership Managers are leaders. Leaders may or may not be managers. They are chosen by the group.

Marking-scheme solution

More from Organising

Basis	Formal organization	Informal organization
Meaning	It is a structure of authority relationships created by the management.	It is a network of social relationships arising out of interaction among employees.
Origin	It arises as a result of company rules and policies.	It arises as a result of social interaction.
Authority	It arises by virtue of position in management.	It arises out of personal qualities.
Behaviour	It is directed by rules.	There is no set behaviour pattern.
Flow of Communication	Communication takes place through the scalar chain.	Flow of communication is not through a planned route. It can take place in any direction.
Nature	It is rigid.	It is flexible.
Leadership	Managers are leaders.	Leaders may or may not be managers. They are chosen by the group.