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Formalandinformalorganisations 111017103951-phpapp01
PREVIEW
 Organisations
 Formal Organisations
 Features of formal organizational
 Advantages formal organization
 Informal organisation
 Advantages of informal organization
 Difference Between Formal And Informal Organisation
 Which one is better?
 CONCLUSION
ORGANISATIONS
 A social unit of people that is structured and
managed to meet a need or to pursue collective
goals.
 All organizations have a management structure that
determines relationships between the different
activities and the members, and subdivides and
assigns roles, responsibilities, and authority to carry
out different tasks. Organizations are open
systems--they affect and are affected by their
environment.
FORMAL ORGANISATIONS
It refers to the organisation structure deliberately
created by management for achieving the objectives
of enterprise.
It is a network of official authority responsibility
relationships and communication follows.
It is an official and rational structure.
Definition :-
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.”
FEATURES OF FORMAL ORGANIZATIONAL
1.The formal organizational structure is created intentionally
by the process of organising.
2.The purpose of formal organizational structure is achievement
of organizational goal.
3.Formal organizational structure results in creation of superior
subordinate relations.
4.Formal organizational structure creates a scalar chain of
communication in the organization.
ADVANTAGES FORMAL ORGANIZATION
1.Systematic working
Formal organization structure results results in
systematic and smooth functioning of an
organization.
2.Achievment of organizational objectives
Formal organizational structure is established
to achieve organizational objectives.
3.No overlapping of work
Informal organization structure work is
systematically divided among various
departments and employees. So there is no
chance of duplication or overlapping of work.
CONTINUE……
4.co-ordination
Formal organizational structure results in
coordinating the activities of various
departments.
5.Creation of chain of command
Formal organizational structure lays
more emphasis on work than
interpersonal relations.
DISADVANTAGE OF FORMAL ORGANIZATION
1.Delay in action
While following scalar chain and chain of command actions
get delayed in formal structure.
2.Ignores social needs of employees
Formal organizational structure dos not give importance to
psychological and social need of employees which may lead to
demonization of employees.
3.Emphasis on work only
Formal organizational structure gives importance to
work only, it ignores human relations, creativity,
talents, etc.
INFORMAL ORGANISATION
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.
It arises naturally on the basis of friendship or some
common interest which may or may not be related
with work.
Definition :-
According to Chester Bernard, “ Informal
organisation is joint personal activity with out
conscious common purpose though contributing to
joint result.”
Informal organisational structure
FEATURES OF INFORMAL ORGANIZATION
1.Informal organizational structure gets created
automatically without any intended efforts of managers.
2.Informal organizational structure is formed by the
employees to get psychology satisfaction .
3.Informal organizational structure does not follow any
fixed path of flow of authority or communication.
4.Source of information cannot be known under informal
structure as any person can communicate with anyone
in the organization.
5.The existence of informal organizational structure
depends on the formal organization.
ADVANTAGES OF INFORMAL ORGANIZATION
1.Fast communication
Informal structure does not follow scalar chain
so there can be faster spread of communication.
2.Fulfills social needs
Informal communication gives due importance
to psychological and social need of
employees which motivate the employees.
3.Correct feedback
Through informal structure the top level
managers can know the real feedback of
employees on various policies and plans.
DISADVANTAGES OF INFORMAL ORGANIZATION
1.spread rumors
According to a survey 70% of informal spread through
informal organizational structure are rumors which may
mislead the employees.
2.No systematic working
Informal structure does not form a structure for smooth
working of an organization.
3.May bring negative results
If informal organizational opposes the policies and changes
of management, then it becomes very difficult to implement
them in organization
4.More emphasis to individual interest
Informal structure gives more important to satisfaction of
individual interest as compared to organizational interest.
Difference Between Formal And
Informal Organisation
Origin
Formal organistion is created delebrately and consoiusly
by management.
Informal organisation emerges spontaneously on account of
socio psychological forces operating at the work place.
Purpose
Formal Organisation is created for achieving the legitimate
objective of the organisation.
Informal Organisation is created by the members of the
organisation for their social and psychological satisfaction.
Size
Formal group may be quite large in size.
Informal groups tent to be small.
Nature of Group
Formal groups are stable and may continue for a
very long period of time.
Informal groups were quite unstable in nature.
Difference Between Formal And Informal
Organisation…..
Number of Group
Generally the number of informal group is greater
than the number of the formal group
Authority
Formal organisation is bound together by a
hyrarchiechal structure.
In Informal organisation all members are equal
Difference Between Formal And Informal Organisation…..
Behavior of Members
In formal organisation behavior of the members
were governed by formal rules and regulations
In the informal organisation the behavior of the
members is governed by norms beliefs and value of
the group
Difference Between Formal And Informal Organisation…..
Communication
In formal organisation, communication normally
flows through the prescribed chain of command.
In informal organisation communications pass
through the informal channels.
Abolition
Management can abolish the formal groups at any
time.
Management has no control over informal groups
which are the creation of natural desire of human
Difference Between Formal And Informal Organisation…..
Leadership
In formal organisation, leadership is vested in managers.
In informal organisation, leadership is not associated with
managership.
Status
There are sharp status differentials among the members of
formal organisation, which inhibit free interaction and
socialisation.
In informal organisation there may be social ranking
among people but these do not prevent free interaction
among people.
Difference Between Formal And Informal Organisation…..
WHICH ONE IS BETTER?
Informal Organisation is better than Formal
Organisation
According to :
Leadership
Number of Group
Behavior of Members
Communication
Stability
objective
CONCLUSION
 It is depend upon situation and varies from
place to place.Always formal organization
are not good or informal organization are
not good .
 It is also depend upon people.
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Formalandinformalorganisations 111017103951-phpapp01

  • 2. PREVIEW  Organisations  Formal Organisations  Features of formal organizational  Advantages formal organization  Informal organisation  Advantages of informal organization  Difference Between Formal And Informal Organisation  Which one is better?  CONCLUSION
  • 3. ORGANISATIONS  A social unit of people that is structured and managed to meet a need or to pursue collective goals.  All organizations have a management structure that determines relationships between the different activities and the members, and subdivides and assigns roles, responsibilities, and authority to carry out different tasks. Organizations are open systems--they affect and are affected by their environment.
  • 4. FORMAL ORGANISATIONS It refers to the organisation structure deliberately created by management for achieving the objectives of enterprise. It is a network of official authority responsibility relationships and communication follows. It is an official and rational structure.
  • 5. Definition :- 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.”
  • 6. FEATURES OF FORMAL ORGANIZATIONAL 1.The formal organizational structure is created intentionally by the process of organising. 2.The purpose of formal organizational structure is achievement of organizational goal. 3.Formal organizational structure results in creation of superior subordinate relations. 4.Formal organizational structure creates a scalar chain of communication in the organization.
  • 7. ADVANTAGES FORMAL ORGANIZATION 1.Systematic working Formal organization structure results results in systematic and smooth functioning of an organization. 2.Achievment of organizational objectives Formal organizational structure is established to achieve organizational objectives. 3.No overlapping of work Informal organization structure work is systematically divided among various departments and employees. So there is no chance of duplication or overlapping of work.
  • 8. CONTINUE…… 4.co-ordination Formal organizational structure results in coordinating the activities of various departments. 5.Creation of chain of command Formal organizational structure lays more emphasis on work than interpersonal relations.
  • 9. DISADVANTAGE OF FORMAL ORGANIZATION 1.Delay in action While following scalar chain and chain of command actions get delayed in formal structure. 2.Ignores social needs of employees Formal organizational structure dos not give importance to psychological and social need of employees which may lead to demonization of employees. 3.Emphasis on work only Formal organizational structure gives importance to work only, it ignores human relations, creativity, talents, etc.
  • 10. INFORMAL ORGANISATION 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. It arises naturally on the basis of friendship or some common interest which may or may not be related with work.
  • 11. Definition :- According to Chester Bernard, “ Informal organisation is joint personal activity with out conscious common purpose though contributing to joint result.”
  • 13. FEATURES OF INFORMAL ORGANIZATION 1.Informal organizational structure gets created automatically without any intended efforts of managers. 2.Informal organizational structure is formed by the employees to get psychology satisfaction . 3.Informal organizational structure does not follow any fixed path of flow of authority or communication. 4.Source of information cannot be known under informal structure as any person can communicate with anyone in the organization. 5.The existence of informal organizational structure depends on the formal organization.
  • 14. ADVANTAGES OF INFORMAL ORGANIZATION 1.Fast communication Informal structure does not follow scalar chain so there can be faster spread of communication. 2.Fulfills social needs Informal communication gives due importance to psychological and social need of employees which motivate the employees. 3.Correct feedback Through informal structure the top level managers can know the real feedback of employees on various policies and plans.
  • 15. DISADVANTAGES OF INFORMAL ORGANIZATION 1.spread rumors According to a survey 70% of informal spread through informal organizational structure are rumors which may mislead the employees. 2.No systematic working Informal structure does not form a structure for smooth working of an organization. 3.May bring negative results If informal organizational opposes the policies and changes of management, then it becomes very difficult to implement them in organization 4.More emphasis to individual interest Informal structure gives more important to satisfaction of individual interest as compared to organizational interest.
  • 16. Difference Between Formal And Informal Organisation Origin Formal organistion is created delebrately and consoiusly by management. Informal organisation emerges spontaneously on account of socio psychological forces operating at the work place. Purpose Formal Organisation is created for achieving the legitimate objective of the organisation. Informal Organisation is created by the members of the organisation for their social and psychological satisfaction.
  • 17. Size Formal group may be quite large in size. Informal groups tent to be small. Nature of Group Formal groups are stable and may continue for a very long period of time. Informal groups were quite unstable in nature. Difference Between Formal And Informal Organisation…..
  • 18. Number of Group Generally the number of informal group is greater than the number of the formal group Authority Formal organisation is bound together by a hyrarchiechal structure. In Informal organisation all members are equal Difference Between Formal And Informal Organisation…..
  • 19. Behavior of Members In formal organisation behavior of the members were governed by formal rules and regulations In the informal organisation the behavior of the members is governed by norms beliefs and value of the group Difference Between Formal And Informal Organisation…..
  • 20. Communication In formal organisation, communication normally flows through the prescribed chain of command. In informal organisation communications pass through the informal channels. Abolition Management can abolish the formal groups at any time. Management has no control over informal groups which are the creation of natural desire of human Difference Between Formal And Informal Organisation…..
  • 21. Leadership In formal organisation, leadership is vested in managers. In informal organisation, leadership is not associated with managership. Status There are sharp status differentials among the members of formal organisation, which inhibit free interaction and socialisation. In informal organisation there may be social ranking among people but these do not prevent free interaction among people. Difference Between Formal And Informal Organisation…..
  • 22. WHICH ONE IS BETTER? Informal Organisation is better than Formal Organisation According to : Leadership Number of Group Behavior of Members Communication Stability objective
  • 23. CONCLUSION  It is depend upon situation and varies from place to place.Always formal organization are not good or informal organization are not good .  It is also depend upon people.