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Differentiate Between Formal and Informal Organization on the Basis of the Following: Authority - CBSE (Commerce) Class 12 - Business Studies

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Question

Differentiate between formal and informal organization on the basis of the following:

Authority

Solution

Basis for
Difference
Formal Organisation Informal Informal Organisation
Authority Based on profile and managerial positions, i.e. flow from top to
bottom.
Based on personal qualities of employees, i.e. flows from all directions.

 

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Solution Differentiate Between Formal and Informal Organization on the Basis of the Following: Authority Concept: Structure of Organisation.
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