Formal and informal organization refer to different structures and means of organizing people within an organization. Here are the key differences:
1. Definition:
Formal organization refers to the official structure of an organization that is deliberately created and planned by management. It includes the hierarchy, reporting relationships, roles, responsibilities, and communication channels that are formalized through policies and procedures. On the other hand, informal organization refers to the relationships and interactions that develop spontaneously among members of an organization without any official design or structure.
2. Creation:
Formal organization is intentionally established by management to achieve specific objectives and ensure efficiency, coordination, and control. It is based on organizational charts, job descriptions, and written rules. Conversely, informal organization emerges naturally and evolves through the social interactions, shared experiences, and personal relationships between employees.
3. Purpose:
Formal organization is primarily focused on achieving organizational goals and objectives. It provides a framework for coordinating and directing the activities of individuals towards desired outcomes. In contrast, informal organization is driven by social connections, trust, and shared interests. It helps satisfy personal and social needs of individuals within the organization, such as friendship and psychological support.
4. Structure:
Formal organization has a clear hierarchical structure with defined levels of authority and responsibility. It follows a top-down approach to decision-making and communication. Informal organization, however, does not have a formal structure and operates based on informal networks and social norms. It can cut across hierarchical boundaries and facilitate communication and cooperation beyond the formal lines of authority.
5. Communication:
Communication in formal organization is formalized and follows official channels specified by the organization. It is usually written and documented to ensure accuracy and accountability. In informal organization, communication is informal, spontaneous, and more personal. It occurs through informal conversations, social interactions, and nonverbal cues.
6. Flexibility:
Formal organization has less flexibility as it is based on predetermined roles and responsibilities. Any changes or deviations require formal approvals and adjustments to the formal structure. Informal organization, on the other hand, is highly adaptable and flexible. It can quickly respond to changes and emerging needs without being bound by hierarchical constraints.
7. Control:
Formal organization allows management to exercise control over employees through the formal hierarchy, rules, and regulations. It provides clear lines of accountability and authority. In contrast, informal organization can challenge or bypass the formal control mechanisms. It relies on social influence, relationships, and personal power rather than formal authority.
Overall, formal organization provides structure and control, while informal organization fosters social connections and flexibility within an organization. Both types of organization can coexist and influence each other in a workplace.
b. Distinguish between formal and informal organisation. (10 marks)
1 answer