INFORMAL VS.
FORMAL
ORGANIZATION
Reported by:
Engr. John Leslie M. Dizon
1. DEFINITION
FORMAL
ORGANIZATION
• is a system of consciously
coordinated activities of two or
more persons
toward a
common objective.
– Chester Barnard
VS.
INFORMAL
ORGANIZATION
• is
an
aggregate
of
interpersonal
relationships
without
any
conscious
purpose but which may
contribute to joint results.
– Chester Barnard
2. OBJECTIVES
FORMAL
ORGANIZATION

To facilitate the accomplishment of the
goals of the organization
 To facilitate the co-ordination of
various activities
 To aid the establishment of logical
authority relationship
 To aid the establishment of
division of labor
 Create group cohesiveness
VS.
INFORMAL
ORGANIZATION
• Informal Leader- is elected by the
members of the groups for different
reasons such as age, seniority,
technical, competence, work location,
and responsive personality, etc.
depending upon the work situation.
• Role of Informal Leader:
a) To help the group reach its goals, and
b) To maintain and enhance group life.
3. CHARACTERISTICS
FORMAL
ORGANIZATION
VS.
INFORMAL
ORGANIZATION
1.
Well defined rules and regulation
1.
Evolving constantly
2.
Arbitrary structure
2.
Grass roots
3.
Dynamic and responsive
4.
Excellent at motivation
5.
Requires insider knowledge to be seen
6.
Treats people as individuals
7.
Flat and fluid
8.
Trust and reciprocity
9.
Difficult to pin down
10.
Essential for situations that change quickly or are
not yet fully understood
3.
Determined objectives and policies
4.
Limitation on the activities of the
individual
5.
6.
7.
Strict observance of the principle of
coordination
Messages are communicated
through vertical chain
Status symbol
4. FUNCTIONS
FORMAL
ORGANIZATION
1. Set specific Goals for
organization
2.
Establishing working
relationship
3.
Create group cohesiveness
4.
Organizational Development
5.
Discipline
6.
Human Resource Development
VS.
INFORMAL
ORGANIZATION
1. Perpetuate the cultural and
social values
2. Provide social status and
satisfaction
3. Promote communication
among members
4. Provide social control
5. BENEFITS
FORMAL
ORGANIZATION
a) Financial Aspects of benefits:

Security

Slow but steady promotion

Commissioned ranks open to men
and women graduates

Can't be fired

Good retirement benefits
VS.







b) Social Aspects of benefits:



Many different branches
appeal to different interests
Social Status
See interesting places and people



INFORMAL
ORGANIZATION
Better Total System
Lighter workload for management
Work group satisfaction
A safety valve for emotions
Cohesiveness
Fill up gaps
Channel of employee
communication
To plan and act more carefully
Encourage Cooperation
Encourage improved management
practice
6. LIMITATIONS
FORMAL
ORGANIZATION
VS.
INFORMAL
ORGANIZATION
1)
Limited Flexibility
1)
Resistance to change
2)
Slowness of processing
2)
Role conflict
3)
Communication Barrier
3)
Rumor
4)
Quality of decision
4)
Conformity
5)
Slowness in Problem
detection
5)
Undermine discipline
6)
Power politics
7)
Interpersonal and
intergroup conflicts
THE END!
THANK YOU!