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Question
Distinguish between a Formal Organisation and an Informal Organisation.
Distinguish Between
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Solution
The difference between formal and informal organisation is as follows:
| Formal Organisation | Informal Organisation |
| Formal organisation is planned and created by management, based upon the needs and requirements of the formal organisation. | Informal organisation is created by people themselves, not out of any organisational need, but by perceived personal needs and interests. |
| Officially and formally managed by the organisation. | Managed informally by members of the group. They may elect/select a group leader as their spokesman and representative to safeguard their interests. |
| The formal group leader has formal authority backed by the organisation. | No formal authority, the strength of the informal representative depends on the support extended by group members. |
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