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Meaning: Formal organization refers to the structure 
of well defined jobs in a formally organized enterprise. 
These jobs are defined in terms of authority, 
responsibility and accountability.
Meaning : The network of social groups based 
on friendship is called informal organization. 
Here human beings wish to share feelings, 
emotions,
BASIS FORMAL 
ORGANIZATION 
INFORMAL 
ORGANIZATION 
FORMATION Formal relations are 
well defined and 
create deliberately. 
Originates as a result 
of social interaction.
BASIS FORMAL 
ORGANIZATION 
INFORMAL 
ORGANIZATION 
PURPOSE It is created to achieve 
predetermined 
objectives. 
It will, satisfy social 
and cultural needs.
BASIS FORMAL 
ORGANIZATION 
INFORMAL 
ORGANIZATION 
STRUCTURE Structure of well 
defined authority and 
responsibility 
relationships. 
Structure based on 
human emotions and 
sentiments.
BASIS FORMAL 
ORGANIZATION 
INFORMAL 
ORGANIZATION 
BEHAVIOR OF 
MEMBERS 
It has prescribed 
pattern of behavior of 
members. 
Social norms are 
developed through 
mutual consent of 
members.
BASIS FORMAL 
ORGANIZATION 
INFORMAL 
ORGANIZATION 
COMMUNICATION Formal 
communication 
through official 
lines. 
Informal 
communication 
based on 
convenience.
BASIS FORMAL 
ORGANIZATION 
INFORMAL 
ORGANIZATION 
LEADERSHIP Managers are in 
superior position. 
Leaders are chosen by 
group members.
BASIS FORMAL 
ORGANIZATION 
INFORMAL 
ORGANIZATION 
STABILITY It is usually stable 
and continues even 
if members leave it. 
The life of informal 
groups is short and 
disintegrate if 
members leave it.
BASIS FORMAL 
ORGANIZATION 
INFORMAL 
ORGANIZATION 
FLEXIBILITY It follows a rigid 
structure. 
It is loosely 
structured and 
highly flexible.
BASIS FORMAL 
ORGANIZATION 
INFORMAL 
ORGANIZATION 
ADHERENCE TO 
RULES 
Strict adherence to 
rules. 
No formal rules 
exist.
BASIS FORMAL 
ORGANIZATION 
INFORMAL 
ORGANIZATION 
INTERDEPENDENCE It exists 
independently. 
It is dependable to 
formal 
organization.

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Formal and informal organisation

  • 1. Meaning: Formal organization refers to the structure of well defined jobs in a formally organized enterprise. These jobs are defined in terms of authority, responsibility and accountability.
  • 2.
  • 3. Meaning : The network of social groups based on friendship is called informal organization. Here human beings wish to share feelings, emotions,
  • 4.
  • 5.
  • 6. BASIS FORMAL ORGANIZATION INFORMAL ORGANIZATION FORMATION Formal relations are well defined and create deliberately. Originates as a result of social interaction.
  • 7. BASIS FORMAL ORGANIZATION INFORMAL ORGANIZATION PURPOSE It is created to achieve predetermined objectives. It will, satisfy social and cultural needs.
  • 8. BASIS FORMAL ORGANIZATION INFORMAL ORGANIZATION STRUCTURE Structure of well defined authority and responsibility relationships. Structure based on human emotions and sentiments.
  • 9. BASIS FORMAL ORGANIZATION INFORMAL ORGANIZATION BEHAVIOR OF MEMBERS It has prescribed pattern of behavior of members. Social norms are developed through mutual consent of members.
  • 10. BASIS FORMAL ORGANIZATION INFORMAL ORGANIZATION COMMUNICATION Formal communication through official lines. Informal communication based on convenience.
  • 11. BASIS FORMAL ORGANIZATION INFORMAL ORGANIZATION LEADERSHIP Managers are in superior position. Leaders are chosen by group members.
  • 12. BASIS FORMAL ORGANIZATION INFORMAL ORGANIZATION STABILITY It is usually stable and continues even if members leave it. The life of informal groups is short and disintegrate if members leave it.
  • 13. BASIS FORMAL ORGANIZATION INFORMAL ORGANIZATION FLEXIBILITY It follows a rigid structure. It is loosely structured and highly flexible.
  • 14. BASIS FORMAL ORGANIZATION INFORMAL ORGANIZATION ADHERENCE TO RULES Strict adherence to rules. No formal rules exist.
  • 15. BASIS FORMAL ORGANIZATION INFORMAL ORGANIZATION INTERDEPENDENCE It exists independently. It is dependable to formal organization.