Formal & Informal Organization

Those organization which are established by following formal rules and regulations formal procedure and which conform the official duties and responsibilities of the position holder are known as formal organization.

Characters of formal organization

v  Created for the completion of specific job

v  Legal and valid

v  Formed as per rules and regulations

v  Education of formal procedure

v  Formal relationship

v  Written rules duty and responsibility

v  Headed  by organization chief or head

v  Presented in organizational chart

Informal Organization

            It is created by the individual persons based on their friendship, individuals and social relationship, similarities in the ideology social norms, values, educational level, place etc. Such informal organization cannot be presented in organizational charts and cannot exists in formal way.

Characters of Informal organization

v  Established on the basis of friendship and common interest

v  Common interest -rf;f]_

v  No formal and define authority and responsibility

v  Membership based on personal acceptance

v  No written rules and regulations

v  Group members formulates the procedures, rules and goals by themselves

v  It may be a result of inefficiency of formal organization.

An example of Formal and Informal Organization can be presented as:-