Distinguish between Formal and Informal Organisation?
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Answers ( 2 )
Difference between Formal and Informal Organization
(i) Origin:
A formal organisation is created to fulfil some objectives.
Hence, a formal organisation is basically goal-oriented. It is built around the general principles or organisation and the members of formal organisation are fully aware of these principles. Informal organisation, on the other hand, develops automatically and spontaneously. In other words, formal organisations are deliberately created whereas informal organisations are spontaneously formed.
(ii) Structure:
A formal organisation has a definite and specially designed structure reflected in organisation chart rendering a pictorial representation of the authority relationships. The authority structure is rigid and defined. Informal organisations are structure less groups. These are initiated by the workers themselves to serve the needs of workers.
(iii) Purpose:
Formal organisations are created to achieve goals defined by management. Normally, profit maximisation or wealth maximisation are the fundamental objectives of a formal organisation. On the other hand, the basic aim of an informal organisation is to satisfy the individual goals of members. Social satisfaction is the fundamental objective of an informal organisation.
(iv) Control:
In formal organisations, control points are established to constrain behaviour, restrain the members from going off the prescribed track. Thus, there exist a rigid system of rules and regulations which all the members are supposed to follow. Informal organisations are not tied to a rigid system of rules and regulations. However, every informal group outlines specific norms which the entire members are not supposed to violate in order to continue their membership.
Major D1. Responsibility:
In delegation, a superior delegates or transfers some rights and duties to a subordinate but his responsibility in respect of that work does not end.ifferences Between Delegation and Decentralizationn the other hand, decentralisation relieves him from responsibility and the subordinate becomes liable for that work.
2. Process:
Delegation is process while decentralisation is the end result of a deliberate policy of making delegation of authority to the lowest levels in managerial hierarchy.
3. Need.
Delegation is almost essential for the management to get things done in the organisation i.e., delegating requisite authority for performance of work assigned. Decentralisation may or may not be practised as a systematic policy in the organisation.
4. Control:
In delegation the final control over the activities of organisation lies with the top executive while in decentralisation the power of control is exercised by the unit head to which the authority has been delegated.