Difference between Formal and Informal Organisation

Formal Organisation:

The formal organisation is defined as the pattern of activities, processes managerial role relationships which are deliberately planned and structured by’ the management of that organisation to accomplish the organisational objectives.

The formal organisation is the one that is officially determined and rationally designed. It is relatively stable and fixed. Various organisational processes such as planning, coordination, communication, flow of authority take place according to a prescribed pattern. This organisation could be easily interpreted through the organisation charts and manuals.


Informal Organisation:

The informal organisation grows inevitably out of the personal needs and group needs of the organisational members. It has been described by Herbert Simson as “the interpersonal relationships in the organisations that affect decisions within it but omitted from the formal scheme or are not consistent with it”.