Difference between formal and informal groups

Important points of difference between formal and informal groups are given below:

Formal vs Informal Groups

Image: Formal vs Informal Groups.

1. Formation of groups: Formal groups are created deliberately and consciously in the organization by the organizer, but informal groups are created on account of prevailing sociopsychological environment at place of work.

2. Objectives of groups: Formal groups are formed to achieve the legitimate objective of the organization, but informal groups are created by the members of the organization to fulfill their social and psychological requirements.

3. Size of groups: Formal groups may be quite large in size, whereas informal groups tend to be small in size.

4. Nature of groups: Formal groups are stable and may continue for a long period, whereas informal groups are quite unstable in its nature.

5. Number of groups: The number of both formal and informal groups may be quite large, but generally informal groups are more than the formal groups. There may also be overlapping of membership.

6. Flow of Authority in groups: In formal groups, the authority flows from higher to lower levels, whereas in the informal groups all members are equal. In informal organizations, some may command more authority by virtue of their personal qualities.

7. Behavior of Group Members: The behavior of members in the formal groups is governed by formal rules and regulations, while in informal groups, the behavior of the members is governed by norms, beliefs and values of the groups.

8. Media of Communication: In formal groups, the media of communication is prescribed, while in informal organizations, the communication pass through informal channels.

9. Abolition of Groups: Formal groups can be abolished at any time but it is very difficult to abolish informal groups. Since the informal groups are the resultant of natural desire of interaction between human and an organization cannot have control over such groups.

10. Nature of Leadership in groups: Formal organization has official leadership, while informal organization has its own leaders, own goals and own standards.

Tags:

Leave a Reply




Recent Posts


Related pages


ppt on joint stock companydifference between a capital lease and an operating leasehow to calculate stock turnover daysmonopolistic controlexplain sales forecastinge-commerce benefits and limitationscash position ratiodisadvantages of indirect exportingexplain plant layoutunderwrite meaninglist of venture capital in indiavouch auditstock turnover ratio definitionwhat is business reengineering processdefine consumer durableadvantages and limitations of budgetary controlcentralization and decentralization in organizationsole trader businessesfranchisee meaningflexible budget disadvantagesactivities in moahow to calculate labour turnoverturnover ratio formulamerger economics definitionwhat are the types of debenturesdefine capexdisadvantages of primary marketdisadvantages of sole traderadvantages and disadvantages of computerized accounting systemwb idameaning of probability samplingdefine ratified contractmeaning of circularspromoter dutiesprocedure for forfeiture of sharesnonperforming assetsemi variable cost graphindian market stockmerits of fdisecuritization of debt meaningdefine itinerantswhat is the doctrine of privitypayback period method of capital budgetingdefine periodicalkshatriyas typical jobsprofit motive meaningservicescape examplesin a capitalistic economysecuritized bondsbusiness process reengineering pdfhow to calculate direct material price varianceurbanisation characteristicsmonopolistic completionlabour rate calculation formulaleadership styles advantages and disadvantagessignificance of cash managementwhat are the advantages of oligarchycooperative banks definitionscattergraph methoddefine profitability indexfuntonscorporate veil protectionmerits and demerits of bureaucracydefinition underwriteradvantages and disadvantages of probability samplingadvantages of dettolorigin of gattsebi objectivespayables turnovernabard bankdefine reverse mergerindia imf loanadvantages and disadvantages of magazines advertisingbudgetary planning and control systemcost variance definitionmerits of informal educationhow to interpret debt to equity ratiosignificance of cottage industrywhat is mechanisation