Question
Differentiate between format and informal organization.
| Basis of comparison | Formal organization | Informal organization |
| $1.$ Formation | Formed systematically with proper guidelines | Formed informally by members while working in the organization and interacting with each other |
| $2.$ Objective | To fulfill business goals | To satisfy social and psychological needs |
| $3.$ What is it? | A systematic organization | A group of like minded people |
| $4.$ Size | Members of the entire organization | Small sized on the basis of like mindedness of employees |
| $5.$ Nature | Stable. Continues for a long time | Unstable and keeps on changing |
| $6.$ Control mechanism | Controlled through rules and regulations of the organization | Controlled through values and beliefs of the associated people |
| $7.$ Focus on | Work performance | |
| $8.$ Authority | Members follow the authority as decided by the hierarchy of the organization | Inter personal relationships All members have equal authority |
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