Question

Differentiate between formal and informal organisation on the basis of (i) origin, (ii) authority, and (iii) flow of communication.

Answer 1

Formal Organization
1.origin- It is deliberately created through a well defined policy of management.
2.Authority-Authority arises on the basis of position of management.
3.Flow of communication-communication take place through scalar chain.
Informal organization
1.origin-It arises as a result of social interaction among the employees.
2.authority-Authority arises on the basis of personal qualities.
3. flow of communication-Communication does not take place through a planned route, it can take place in any direction.