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Questions
Differentiate between formal and informal organization on the basis of the following:
Flow of communication
Differentiate between formal organization and informal organization on any four bases.
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Solution
| S. No. | Basis | Formal organization | Informal organization |
| 1. | Meaning | The term "formal organization" describes the hierarchy established by management. | Refers to the informal and personal relationships that exist between coworkers. |
| 2. | Origin | The management's rules and policies are the source of the structure. | The social interactions among the employees are the source of the structure. |
| 3. | Authority | The managerial posts and profile define authority. | Employees' personal characteristics define their authority. |
| 4. | Flow of communication | A communication takes places through a scalar chain. | It can take place in any direction. |
| 5. | Nature | Formal organisations are rigid. | Informal organisations are flexible. |
Notes
Students should refer to the answer according to their questions.
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- Identify and state the organisational structure adopted by the company.
- State two benefits and two limitations of the identified structure highlighted in the above case.
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