Formal organization refers to the predefined structure of jobs and roles within a company based on authority, responsibility, and accountability. Informal organization refers to the social networks that form between employees based on friendship, where people share feelings and emotions. The key differences between formal and informal organizations are that formal organizations are deliberately designed to achieve objectives, have a rigid hierarchical structure, and prescribe behaviors, while informal organizations originate spontaneously from social interactions to fulfill social needs, have loosely structured roles based on human relationships, and develop social norms organically.

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.

3. Meaning : The network of social groups based
on friendship is called informal organization.
Here human beings wish to share feelings,
emotions,

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.