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Organizations are basically classified on the basis of relationships. There are two types of
organizations formed on the basis of relationships in an organization
1. Formal Organization
- This is one which refers to a structure of well defined jobs each
Authority Flows from Top to Bottom
-Managing Director
-Marketing Manager
-Sales/ Media Manager
-Sales people
bearing a measure of authority and responsibility. It is a conscious determination by which people accomplish goals by adhering to the norms laid down by the structure. This kind of organization is an arbitrary set up in which each person is responsible for his performance. Formal organization has a formal set up to achieve pre- determined goals.
2. Informal Organization
- It refers to a network of personal and social relationships which spontaneously originates within the formal set up. Informal organizations develop relationships which are built on likes, dislikes, feelings and emotions. Therefore, the network of social groups based on friendships can be called as informal organizations. There is no conscious effort made to have informal organization. It emerges from the formal organization and it is not based on any rules and regulations as in case of formal organization.
marto answered the question on March 4, 2019 at 08:14
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