Difference between formal and informal organization


Difference between formal and informal organization:

Informal and formal organizations are different from each other according to the following aspects:

Purpose: Formal organizations are created for completion of certain objectives that are predefined but informal organizations are formed to satisfy the psychological and social need. The goals or objectives of formal and informal organizations may cause conflict in the workplace.

Origin: The reasons of origin of the informal and formal organizations are dissimilar. Formal organizations are formed deliberately and consciously by the management. Informal organizations are formed unplanned within formal organizations. It is formed due to natural tendency of interaction in the organization and there is no control of management for formation and winding up of informal organizations.

Structure: The structure of formal organization is well planned and comprises of predefined position and roles of the employees. There is definite superior–subordinate relationship and welled defined rules and regulations in the informal organization. On the other hand informal organization has no perfect structure. It is complicated network of social and interpersonal relationship informal organization has no written norms of behavior. There is no specific direction of communication in informal organization.

Activities: In case of formal organization activities are performed in contrast with objective of the organization. Every activity of formal organization is performed in contrast with objectives of the organization. Every employee is placed on position and job according to grouping of activities by management. In case of informal activities are not specific. They arise from time to time as a result of interaction of the people.

Membership: Every employee belongs to one work group only and works under one superior. In case of informal organization an individual can be a member of more than one group according to his choice. There is no firmness about group membership.  

Orientation: The formal organization is concerned about productivity, efficiency, survival and growth. On other hand informal organization values, goals, tasks are related to the satisfaction of the psychosocial needs and goes around friendship, group satisfaction affiliation and cohesiveness.

Norms of behavior: In a formal organization employees are required to follow the rules and regulation related to the behavior pattern of the individuals in the workplace. The employees are dealt according to the disciplinary laws of the organization if they don’t follow the rules. There is a system of rewards and punishment for the employees. On the other hand informal organization does not possess any specific norms. Behavior of the individuals is social and natural in case of informal organization. There is free communication of ideas, emotions and feelings in informal organizations.