Formal and Informal OrganizationSarah Olivarez-Cruz

Presenter

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