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Formal and Informal OrganizationSarah Olivarez-Cruz
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Formal Organization
• It is a controlled network of people governed by position and responsibility
Informal Organization
• It is a network of personal and social relations which aroused spontaneously as people associate with one another
Differences between IO and FOBasis of Comparison Informal Group Formal Group
General nature Unofficial Official
Major Concepts Power and politics Authority and Responsibility
Primary Focus Person Position
Source of leader power Given by Group Delegated by management
Guidelines of Behavior Norms Rules and Policies
Sources of control Sanctions Rewards and Penalties
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