Question:
State any three points of difference between Formal organisation and Informal organisation.
State any three points of difference between Formal organisation and Informal organisation.
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A formal organisation is created by the management through rules, while an informal organisation grows from social contact. Compare them on any three bases such as meaning, origin, authority, nature, communication or leadership.
Updated On: Oct 26, 2026
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Solution and Explanation
Step 1: Understand the two terms:
The question asks for three differences between a formal and an informal organisation. Both exist inside the same business, so we compare them point by point.
A formal organisation is the structure of authority relationships that the management creates on purpose. An informal organisation is the network of social relationships that grows out of daily contact among employees.
Step 2: Difference 1: Meaning:
Formal organisation: it is a planned structure of authority relationships. Jobs, powers and duties are written down by the management.
Informal organisation: it is a web of friendships and social ties. Nobody designs it. It forms when people talk, eat lunch together and share interests.
Step 3: Difference 2: Origin:
Formal organisation: it comes into being because of company rules and policies. A new unit or department is set up by a management decision.
Informal organisation: it comes into being because of social interaction. It starts the moment employees begin to mix with each other.
Step 4: Difference 3: Authority:
Formal organisation: authority flows from the position a person holds in the management hierarchy. A manager has power because of the post.
Informal organisation: authority comes from personal qualities such as knowledge, skill or a likeable nature. No post is needed.
Step 5: Marking note:
CBSE accepts any three bases. Other valid bases are behaviour, flow of communication, nature and leadership. Writing three bases with both sides clearly stated earns full marks.
Final Answer:
Formal organisation is created by management through rules and positions, while informal organisation is born from social interaction. They differ in meaning, origin and source of authority.
The question asks for three differences between a formal and an informal organisation. Both exist inside the same business, so we compare them point by point.
A formal organisation is the structure of authority relationships that the management creates on purpose. An informal organisation is the network of social relationships that grows out of daily contact among employees.
Step 2: Difference 1: Meaning:
Formal organisation: it is a planned structure of authority relationships. Jobs, powers and duties are written down by the management.
Informal organisation: it is a web of friendships and social ties. Nobody designs it. It forms when people talk, eat lunch together and share interests.
Step 3: Difference 2: Origin:
Formal organisation: it comes into being because of company rules and policies. A new unit or department is set up by a management decision.
Informal organisation: it comes into being because of social interaction. It starts the moment employees begin to mix with each other.
Step 4: Difference 3: Authority:
Formal organisation: authority flows from the position a person holds in the management hierarchy. A manager has power because of the post.
Informal organisation: authority comes from personal qualities such as knowledge, skill or a likeable nature. No post is needed.
Step 5: Marking note:
CBSE accepts any three bases. Other valid bases are behaviour, flow of communication, nature and leadership. Writing three bases with both sides clearly stated earns full marks.
Final Answer:
Formal organisation is created by management through rules and positions, while informal organisation is born from social interaction. They differ in meaning, origin and source of authority.
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