Principles and Practices of Management and Business Communication

136 Principles and Practice of Management

Table 4.3 Distinction Between Formal and Informal Organizations

Points of

Distinction

Formal Organization Informal Organization

Meaning It is established and activated by

managerial actions and decisions

Management has no hand in the evolution

and functioning of informal organization. It is

uno cial

Basis Authority, functions and regulations Needs, attitudes and emotions

Structure It is hierarchical in structure and is usually in

the form of a pyramid. It canbe depicted in

the form of a chart

It is a rather shapeless, unchartable, natural and

spontaneous system arising out of the social

tendency of people ...