The
difference between formal and informal organisation can be drawn clearly on the
following grounds:
difference between formal and informal organisation can be drawn clearly on the
following grounds:
- Formal Organization is an organisation in
which job of each member is clearly defined, whose authority,
responsibility and accountability are fixed. Informal Organization is
formed within the formal organisation as a network of interpersonal
relationship when people interact with each other. - Formal
organisation is created deliberately by top management. Conversely,
informal organisation is formed spontaneously by members. - Formal
organisation is aimed at fulfilling organisation’s objectives. As opposed
to an informal organisation is created to satisfy their social and
psychological needs. - Formal
organisation is permanent in nature; it continues for a long time. On the
other hand, informal organisation is temporary in nature. - The formal
organisation follows official communication, i.e. the channels of
communication are pre-defined. Unlike informal organisation, the
communication flows in any direction. - In the formal
organisation, the rules and regulations are supposed to be followed by
every member. In contrast to informal communication, there are norms,
values, and beliefs, that work as a control mechanism. - In the
formal organisation, the focus is on the performance of work while in
the case of an informal organisation, interpersonal communication is given
more emphasis. - The size of a formal
organisation keeps on increasing, whereas the size of the informal
organisation is small. - In a formal
organisation, all the members are bound by the hierarchical structure, but
all the members of an informal organisation are equal.
How informal organization reinforce the working of
the formal organisation
the formal organisation
If handled properly, informal organisation will
help in performing the activities of the organization very efficiently and
effectively. Informal organization may act to fill in gaps in a manager’s ability.
For instance, if a manager is weak in planning, one of his subordinates may
informally help him in such a situation. Management may also make use of
informal group leaders by taking them into confidence to mediate as bridges of
understanding between the management and the employees. Therefore, management
should adopt a positive attitude towards informal organization. It should use
it along with formal structure to make a workable system for achieving the
organizational objectives.
help in performing the activities of the organization very efficiently and
effectively. Informal organization may act to fill in gaps in a manager’s ability.
For instance, if a manager is weak in planning, one of his subordinates may
informally help him in such a situation. Management may also make use of
informal group leaders by taking them into confidence to mediate as bridges of
understanding between the management and the employees. Therefore, management
should adopt a positive attitude towards informal organization. It should use
it along with formal structure to make a workable system for achieving the
organizational objectives.
The importance of informal organization arises from
the functions performed by informal groups. The important functions of informal
organization to formal organization are as under the following:
the functions performed by informal groups. The important functions of informal
organization to formal organization are as under the following:
i.
It serves as a very useful channel of communication
in the organization. The informal communication is very fast.
It serves as a very useful channel of communication
in the organization. The informal communication is very fast.
ii.
It blends with the formal organization to make it
more effective.
It blends with the formal organization to make it
more effective.
iii.
It gives support to the formal organization.
It gives support to the formal organization.
iv.
The informal leader lightens the burden of the
formal manager and tries to fill in the gap in the manager’s abilities.
The informal leader lightens the burden of the
formal manager and tries to fill in the gap in the manager’s abilities.
v.
Informal organization gives psychological
satisfaction to the members. They get a platform to express their feelings.
Informal organization gives psychological
satisfaction to the members. They get a platform to express their feelings.
vi.
The presence of informal organization encourages
the manger to plan and act carefully. Thus, informal organization supports and
supplements the formal organization.
The presence of informal organization encourages
the manger to plan and act carefully. Thus, informal organization supports and
supplements the formal organization.