Basis of Difference
Meaning
Formal organisation It is an officially defined system of roles and authority (superior subordinate relationship) in an organisation
informal organisation It refers to a network of relationships that arise out of informal communication among the employees of an organisation
Formation
fromal organisation It is deliberately created by the managers.
informal organisation
They arise spontaneously and are not deliberately created by the managers.
Flow communication formal organisationThe flow of communication in a formal organisation is as per the scalar-chain.
infromal organisation In an informal organisation communication does not follow a pre-defined path and flows freely.
