Distinction between formal and informal organizations

The points of distinction between formal and informal organization have been tabulated below:

Sl. No	Formal Organizations	Informal Organizations
1.	1. It is consciously and deliberately created	It arises spontaneously
2.	Authority and responsibility are vital for its functioning	It is only personal factors such as friendship, affinity, trust and confidence that are important.
3.	Rules and procedures are important	Personal relationship between individual is more important.
4.	It can be shown on the organization chart	It cannot be shown
5.	Authority flows downwards and responsibility flows upwards.	There is no flow of authority and responsibility.
6.	It is deliberately created only to attain the enterprise objectives.	It is created to fulfill the social needs of an individual. How-ever, it may also contribute to the enterprise goal.
7.	Designations and official positions are very important	Designations and official positions are unimportant.
8.	It is permanent and stable.	It is unstable.

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