Question:
Distinguish between ‘Formal organization’ and ‘Informal organization’ on the basis of the following :
(i) Authority
(ii) Leadership
(iii) Flow of communication
Distinguish between ‘Formal organization’ and ‘Informal organization’ on the basis of the following :
(i) Authority
(ii) Leadership
(iii) Flow of communication
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Formal organisation has authority by position, managers as leaders and communication through the scalar chain. Informal organisation has authority from personal qualities, group chosen leaders and no planned route of communication.
Updated On: Oct 26, 2026
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Solution and Explanation
Step 1: Know the two terms:
A formal organisation is planned by management. An informal organisation grows from social ties. We compare them on authority, leadership and flow of communication.
Step 2: (i) Authority:
Formal organisation: authority arises by virtue of a position in the management. A manager has power because of his post.
Informal organisation: authority arises out of personal qualities. A person with knowledge or a pleasant nature gets influence.
Step 3: (ii) Leadership:
Formal organisation: the managers are the leaders.
Informal organisation: the leaders may or may not be managers. The group chooses them.
Step 4: (iii) Flow of communication:
Formal organisation: communication takes place through the scalar chain, from one level to the next.
Informal organisation: the flow of communication does not follow a planned route. It can move in any direction.
Final Answer:
Formal organisation has position based authority, manager leaders and scalar chain communication. Informal organisation has authority from personal qualities, group chosen leaders and free communication.
A formal organisation is planned by management. An informal organisation grows from social ties. We compare them on authority, leadership and flow of communication.
Step 2: (i) Authority:
Formal organisation: authority arises by virtue of a position in the management. A manager has power because of his post.
Informal organisation: authority arises out of personal qualities. A person with knowledge or a pleasant nature gets influence.
Step 3: (ii) Leadership:
Formal organisation: the managers are the leaders.
Informal organisation: the leaders may or may not be managers. The group chooses them.
Step 4: (iii) Flow of communication:
Formal organisation: communication takes place through the scalar chain, from one level to the next.
Informal organisation: the flow of communication does not follow a planned route. It can move in any direction.
Final Answer:
Formal organisation has position based authority, manager leaders and scalar chain communication. Informal organisation has authority from personal qualities, group chosen leaders and free communication.
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