Main characteristics of formal and informal organization?

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2026-03-09 16:20

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Main characteristics of formal organisation * Deliberately planned and created * Concerned with the co-ordination of activities * Hierarchically structured with stated objectives * Based on certain principles such as the specification of tasks * Organization structure is laid down by the top management to achieve organizational goals. * Organization structure is based on division of labor and specialization to achieve efficiency in the operations. * The authority and responsibility relationships created by the organization structure are to be honored by everyone. * Developed through delegation of authority * Organization structure concentrates on the jobs to be performed and not the individuals who are to perform jobs. * The organization does not take into consideration the sentiments of organizational members. Main characteristics of informal organisation * The informal organisation is flexible and loosely structured * Relationships may be left undefined * Membership is spontaneous and with varying degrees of involvement * Involves two or more people * Informal relationships, groupings & interactions * Repeated contacts but without any conscious joint purpose * Involves the human need to socialize * Includes both friendly and hostile relationships and interactions * Informal association precedes formal organization, as it requires preliminary (informal) contact and interaction before establishment

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