How does it differ from the formal organization?

An informal organization refers to the social structure and relationships that develop naturally among individuals within a workplace, often characterized by personal connections, friendships, and unofficial communication channels. In contrast, a formal organization is structured and governed by established rules, roles, and hierarchies, focusing on achieving specific objectives and following defined procedures. While formal organizations emphasize official reporting lines and responsibilities, informal organizations can enhance collaboration and morale, often influencing the overall culture and effectiveness of the workplace.