Distinguish between formal and informal organisation on the basis of (1) Meaning, (2) Origin, (3) Authority, (4) Flow of Communication.

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answered Jul 16, 2018 by Faiz Ahmad (62.0k points)
selected Aug 5, 2018 by Vikash Kumar

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Difference between Formal and Informal Organisation:

Basis	Formal Organisation	Informal Organisation
(i) Meaning	It refers to the well defined structure of authority and responsibility created by the management.	It refers to the network of social relationships arising out of interaction among employees.
(ii) Origin	It is deliberately created through a well defined policy of management.	It arises as a result of social interaction among the employees.
(iii) Authority	Authority arises on the basis of position of management.	Authority arises on the basis of personal qualities.
(iv) Flow of communication	Communication takes place through the scalar chain	Communication does not take place through a planned route, it can take place in any direction.