Formal and informal organisations


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  • What is the Difference between Formal & Informal Organization
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Formal and informal organisations

  1. 1. Welcome
  2. 2. Presentation By; Hari P M 9847406266 [email_address]
  3. 4. <ul><li>It refers to the organisation structure deliberately created by management for achieving the objectives of enterprise. </li></ul><ul><li>It is a network of official authority responsibility relationships and communication follows. </li></ul><ul><li>It is an official and rational structure. </li></ul>
  4. 5. <ul><li>According to Chester Bernard , “Formal organisation is a system of consciously coordinated activities of two or more persons towards a common objectives. The essence of formal organisation is conscious common purpose and formal organisation comes into existence when persons (A) are able to communicate with each other (B) are willing to act and (C) share a purpose.” </li></ul>
  5. 6. <ul><li>It refers to the pattern of activity interactions and human relationship which emerge spontaneously due to social and psychological forces operating at the work place. </li></ul><ul><li>It arises naturally on the basis of friendship or some common interest which may or may not be related with work. </li></ul>
  6. 7. <ul><li>According to Chester Bernard , “ Informal organisation is joint personal activity with out conscious common purpose though contributing to joint result.” </li></ul>
  7. 8. <ul><li>Origin </li></ul><ul><li>Formal organistion is created delebrately and consoiusly by management. </li></ul><ul><li>Informal organisation emerges spontaneously on account of socio psychological forces operating at the work place. </li></ul><ul><li>Purpose </li></ul><ul><li>Formal Organisation is created for achieving the legitimate objective of the organisation. </li></ul><ul><li>Informal Organisation is created by the members of the organisation for their social and psychological satisfaction. </li></ul>
  8. 9. <ul><li>Size </li></ul><ul><li>Formal group may be quite large in size. </li></ul><ul><li>Informal groups tent to be small. </li></ul><ul><li>Nature of Group </li></ul><ul><li>Formal groups are stable and may continue for a very long period of time. </li></ul><ul><li>Informal groups were quite unstable in nature. </li></ul>
  9. 10. <ul><li>Number of Group </li></ul><ul><li>Generally the number of informal group is greater than the number of the formal group </li></ul><ul><li>Authority </li></ul><ul><li>Formal organisation is bound together by a hyrarchiechal structure. </li></ul><ul><li>In Informal organisation all members are equal </li></ul>
  10. 11. <ul><li>Behavior of Members </li></ul><ul><li>In formal organisation behavior of the members were governed by formal rules and regulations </li></ul><ul><li>In the informal organisation the behavior of the members is governed by norms beliefs and value of the group </li></ul>
  11. 12. <ul><li>Communication </li></ul><ul><li>In formal organisation, communication normally flows through the prescribed chain of command. </li></ul><ul><li>In informal organisation communications pass through the informal channels. </li></ul><ul><li>Abolition </li></ul><ul><li>Management can abolish the formal groups at any time. </li></ul><ul><li>Management has no control over informal groups which are the creation of natural desire of human beings to interact. </li></ul>
  12. 13. <ul><li>Leadership </li></ul><ul><li>In informal organisation, leadership is vested in managers. </li></ul><ul><li>In informal organisation, leadership is not associated with managership. </li></ul><ul><li>Status </li></ul><ul><li>There are sharp status differentials among the members of formal organisation, which inhibit free interaction and socialisation. </li></ul><ul><li>In informal organisation there may be social ranking among people but these do not prevent free interaction among people. </li></ul>