Formal and Informal Organizations

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What is a Formal Organization?

Formal organization is the intentional structure of roles in a formally organized enterprise. Intentional structure of roles implies that people working together must fill certain roles. These roles should be designed so that required activities are done, and that activities fit together so that people can work smoothly, effectively and efficiently in groups. However, it should be noted that formal organizations must be flexible with room for discretion, utilization of individual talents and capacities.

What is an Informal Organization?

Informal organization, on the other hand, a network based on personal relationships not officially established.

Additional Readings:

1. Functions of a Business Manager
2. Henry Fayol and Modern Management Theory
3. Modern Management Thoughts and McKinsey's 7-S framework
4. Industrial Planning
5. Management and Setting of Objectives
6. Principals of Organization
7. Matrix Organizations
8. Functions of the Human Resources and Accounting within an Organization
9. Differentiation between Motivation and Satisfaction
10. Barriers to Good Communication
11. Requirements of Effective Controls
12. Formal and Informal Organizations
13. Bonded Rationality

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