Distinguish between formal and
informal organization
Organizations
are basically clasified on the basis of relationships. There are two types of
organizations formed on the basis of relationships in an organization
Formal Organization - This is one which refers to a
structure of well defined jobs each
bearing a measure of authority and responsibility. It is a conscious
determination by which people accomplish goals by adhering to the norms laid
down by the structure. This kind of organization is an arbitrary set up in
which each person is responsible for his performance. Formal organization has a
formal set up to achieve pre- determined goals.
Informal Organization - It refers to a network of personal
and social relationships which
spontaneously originates within the formal set up. Informal organizations
develop relationships which are built on likes, dislikes, feelings and
emotions. Therefore, the network of social groups based on friendships can be
called as informal organizations. There is no conscious effort made to have
informal organization. It emerges from the formal organization and it is not
based on any rules and regulations as in case of formal organization.
Relationship between formal and
informal organizations
For a concerns working both formal and informal organization
are important. Formal organization originates from the set organizational
structure and informal organization originates from formal organization. For an
efficient organization, both formal and informal organizations are required.
They are the two phase of a same concern. Formal organization can work
independently. But informal organization depends totally upon the formal
organization. Formal and informal organization helps in bringing efficient working
organization and smoothness in a concern. Within the formal organization, the
members undertake the assigned duties in co- operation with each other. They
interact and communicate amongst themselves. Therefore, both formal and
informal organizations are important. When several people work together for
achievement of organizational goals, social tie ups tends to built and
therefore informal organization helps to secure co-operation by which goals can
be achieved smooth. Therefore, we can say that informal organization emerges
from formal organization.
Formal and Informal Organization
Formal Organiation
The formal orgainzation describes
the job of each individiual and relationship between organiational members
Benefits
of Formal Organization
Formal
Organiation helps in implementing the objectives and policies
Effective
Control can be made in these types
of formal Organization
Formal
Organiation helps to achieve individual goals in the frame work of
organizational goals
It
is Larger in size
Informal
Organization
There is
no definite organization structure for informal orgainzation. Ininformal
organization individula and group goals are more important than organization
goals.
Functions
of Informal Organization
It
helps to preserve the integrity of the groups as a whole
It
acts as an efective communication channel
It
provides job satisfaction
It
controls the social behaviour of the employees
Benefits
of Informal Organization
Informal
organizations encourage co-operation
Reduces
the work load of managers
Informal
Organizations provide job security and stability to an employee.
Disadvantages
of Informal Organization
Informal Organization creates
conflict between employees and employers
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