Formal organization vs informal organization: A Comparative view
- Meaning: Structure of authority relationships created by the management.
- Origin: Arises as a result of company rules and policies.
- Authority: Arises by virtue of position in management
- Behavior: It is directed by rules
- The flow of Communication: Communication takes place through the scalar chain
- Nature: Rigid
- Leadership: Managers are leaders.
- Meaning: Network of social relationships arising out of interaction among employees.
- Origin: Arises as a result of social interaction.
- Authority: Arises out of personal qualities
- Behavior: There is no set behaviour pattern
- The flow of Communication: Flow of communication is not through a planned route. It can take place in any direction
- Nature: Flexible
- Leadership: Leaders may or may not be managers. They are chosen by the group.