12.4 DIFFERENCES BETWEEN FORMAL AND INFORMAL ORGANISATIONS The formal and informal groups differ considerably and the major differences can be analysed as
follows.
12.5 RELATIONSHIP BETWEEN FORMAL AND INFORMAL ORGANISATIONS Formal and Informal organisations are the parts of the total organisation and therefore, it can be said
that they are two sides of the same coin. The following points shows the relationship between these
two groups.
Formal Organisation Informal Organisation 1. Origin: A formal group is created by
the action of management in order to
overco me the shortcomings of
organisation structure.
1. Informal groups are created because the
memberes of the organisation are not fully
satisfied by the pattern of relationship
prescribed by the organisation.
2. Authority Structure: In formal groups
members derive authority through the
formal source, that is through delegation
and redelegation.
2. In an informal group, every member is
eq ual and they derive auth ority from
interpersonal relationship.
3. Nature of Groups: Formal groups
are stable and continue for longer time.
Their membership is decided by the
organisation and there is provision of
substitution of members.
3. Informal groups are quite unstable. Since
they are created by the members based on
their value systems, likings, dislikings, they
may disappear because of the change of
members or their working is changed.
4. Behaviour of Members: Behaviour of
members in a formal group is governed
by formally prescribed rules a nd
regulations.
4. In an informal group, the behaviour of
members is governed by group norms,
beliefs and values.
5. Communication pattern: Communication in a front group takes
place on the lines of formal prescription
5. In the informal group, communiction can
go through any direction as there is no
prescribed channel.
