Formal and Informal Organization

#shorts Difference between formal and informal organization

Formal organization is a group of people that accomplish a common objective and follow formal rules and policies and has structure of authority.

On the other hand. informal organization is a relationship among people with common interest and doesn't have to do with the formal organizational structure of the company.

For example

Michael is a food and beverage supervisor under food and beverage department of Hotel A. He has staff who reports to him that includes James, John and Patrick. This is an example of Formal Organization

Then Michael has friends with other department. Mark is in the accounting department and Philip is in the Engineering department.

Whenever they are out of work, they hang out and enjoy doing outside activities. This is an example of Informal Organization