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Distinguish between: Formal and Informal Organization on the basis of the following: 

(i) Origin 

(ii) Authority and 

(iii) Leadership

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Difference between Formal Organization and Informal Organization

Basis Formal Organization Informal Organization
Formation / Origin Formal relations are well planned and are created deliberately. Informal relations are unplanned and they originate automatically.
Flow of Authority Authority flows from top to bottom, i.e., vertically downward. Authority flows vertically as well as horizontally.
Leadership Managers provide leadership to the workers of their departments. Informal leaders are chosen by the group members.

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