Formal and

Informal
Organization

PRESENTED BY: MAHJID SOLOG

– Organizational are also distinguished by the nature of the
formality of their structures. Thus, organizations maybe
either formal or informal. It is important to know the
difference between formal and informal structures
because they have implications in terms of work
expectations and the nature of relationships among
members.
Formal Organizations

– Formal organization have formal structures. They are

officially created to accomplish specific objectives.
Members are bound to perform the job or task assigned
to them.
– Formal organizational structures may be described in
terms of three features: formalization, complexity,
centralization.
– Formalization
Pertains to the degree to which the
work task or job are standardizes.
Formalization is important because it
regulates the employee’s behavior and
output.
– Complexity
Is another characteristic of a formal
structure that pertains to the degree of
differentiation between the units based on
the task they perform.
– Centralization
On the other hand, is a
characteristics of a formal structure that
pertains to the degree to which decision-
making is concentrated in one area within the
organization.
Informal Organizations

– Informal organizations have informal structures. They are

not officially created, but are freely formed by members
who have a need for them they are also called the
“shadow” organization behind the formal organization
behind the formal organization because relationships
among members are not specified but can be observed.