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Differentiate between formal and informal organisations on the basis of i. origin, ii. authority, and iii. flow of communication. - Business Studies

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Questions

Differentiate between formal and informal organisations on the basis of

  1. origin,
  2. authority, and
  3. flow of communication.

State any six difference between formal communication and informal communication.

Distinguish between Formal and Informal Communication.

Distinguish Between
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Solution

Sr. No. Basis of Difference Formal Communication Informal Communication
1. Origin It originates from the defined authority and hierarchy in the organisation. It originates from social interactions among the employees and the need of employees to exchange views.
2. Authority Members are bound by a hierarchical structure. Due to formal and impersonal relationships, superior or top-level managers have a higher level of authority than subordinates. Members have equal authority due to informal and personal relationships among the employees.
3. Flow of Information The information has to pass through various formal communication channels. Information is free to flow and no formal channels are followed.
4. Purpose To achieve organisation goals. To satisfy personal needs.
5. Speed It is slow as the message has to pass through the prescribed or officially established path.  It is fast as it does not follow a particular or prescribed path.
6. Accuracy Chances of distortion are few; more accurate and reliable. Chances of distortion are many because messages may get distorted as different persons pass on the same message with different interpretations.
7. Form It is preplanned, rigid, follows officially established relationships and is expressed in both oral and written forms. It is orderly and systematic.  It is not preplanned, flexible, does not follow the officially established relationships, and is mostly expressed orally. It is unsystematic and elastic in flow.
8. Responsibility for the message It is authentic and responsibility for the message can be fixed because the source is clear. It is not authentic and responsibility cannot be fixed easily for the messages passed because it flows through grapevine and unofficial channels.
9. Content Work-related information. Person-related information.
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Chapter 14: Business Communication - EXERCISES [Page 208]

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