Formal structure refers to the officially established hierarchy, roles, and responsibilities within an organization. It typically follows a clear chain of command and is represented by the organizational chart. Formal structures include positions such as CEO, managers, supervisors, and staff members. This structure defines how information and decision-making flow within the organization.
In contrast, informal structure refers to the relationships, interactions, and networks that develop spontaneously among employees outside of the formal structure. It is characterized by social connections, affiliations, and the informal flow of communication. Informal structures can influence how work gets done, how decisions are made, and how information is shared, often based on personal relationships, trust, and social norms. While not officially recognized, informal structures can play a significant role in shaping an organization's culture and dynamics.
What is formal and informal structure?
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