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FORMAL ORGANIZATION
Formal Organization is
a system of consciously coordinated activities of two or more persons toward a
common objective. -Chester Barnard
Features
Advantages
INFORMAL ORGANIZATION
Features
Originates from within the formal organization as a result of personal interaction among
employees.
The standards of behavior evolve from group norms.
Independent channels of communication without specified direction of flow of information are
developed by group members.
Emerges spontaneously and is not deliberately created by the management.
Advantages:
It spreads rumors. This may work against the interest of the formal organization.
The management may not be successful in implementing changes if the informal organization
opposes them. Such resistance to change may delay or restrict growth.
It pressurizes members to conform to group expectations.
DIFFERENCE BETWEEN FORMAL AND INFORMAL ORGANIZATION