Types of organization based on classification

Organization can be classified basically on the
basis of relationships. There are two types of organizations formed on the
basis of relationships in an organization
1.     
Formal Organization
This is one which refers to a structure of
well-defined jobs each bearing a measure of authority and responsibility. It is
a conscious determination by which people accomplish goals by adhering to the
norms laid down by the structure. This kind of organization is an arbitrary set
up in which each person is responsible for his performance. Formal organization
has a formal set up to achieve pre- determined goals.

Characteristics
of formal organization
i.       
The
establishment and the development of this type of the organization are very
formal in the nature.
ii.       
Helps
in providing a shape to the various organized activities.
iii.       
The
Formal organization is developed for a continuous purpose mainly involving the
activities that are repetitive in the nature.
iv.       
This
organization looks after the growth and the stability in the business.
v.       
In
the Formal organization, the design is such that that it acts as a great
support for the distribution of the authority, creation of the positions,
linkage of the various functions etc.
Informal
Organization
It refers to a network of personal and social
relationships which spontaneously originates within the formal set up. Informal
organizations develop relationships which are built on likes, dislikes,
feelings and emotions. Therefore, the network of social groups based on
friendships can be called as informal organizations. There is no conscious
effort made to have informal organization. It emerges from the formal
organization and it is not based on any rules and regulations as in case of
formal organization.
Characteristics
of informal organization
a.       
Here, the
people come together informally through their acquaintance.
b.       
Informal
relations are created within the same organization which may not be formally
planned.
c.       
The
Informal organization is born of itself.
d.       
Whenever
there is a formal organization, an informal organization is born.
e.       
The
Informal organization comes up with the help of the social relations such as
the trust, the dependence, the liking etc
Relationship between formal and informal organizations
·        
For a concerns working both formal and informal
organization are important. Formal organization originates from the set
organizational structure and informal organization originates from formal
organization. For an efficient organization, both formal and informal
organizations are required. They are the two phase of a same concern.
·        
Formal organization can work independently. But
informal organization depends totally upon the formal organization.
·        
Formal and informal organization helps in bringing
efficient working organization and smoothness in a concern. Within the formal
organization, the members undertake the assigned duties in co-operation with
each other. They interact and communicate amongst themselves.
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