what is the difference between an informal and formal organisation?

Question

i have just been set some coursework at uni and before i can begin i need to understand what business organisations is and the difference between a formal and informal organisation, i then have to explain the importance of the latter. i need help i have looked on the internet and in books and i do not know where to begin!! if that wasn't bad enough i then have to explain in what ways could the informal organisation actually work against the interests of the formal??? anyone who can help, pleeese get in touch, thanks!!

Answer 1

a formal organisation has a constitution or written structure and processes.

informal ones rely on "common sense" and people working together naturally adapting to the need of the organisation.

An incorporated organisation is one with rights & responsibilities in law the same as a person eg Company Ltd, or Co-operative.

Answer 2

Hi >
I am not an expert in such matters, but for what it is worth -
My understanding is that a "formal" organisation/business/government dept.. is that the structure is controlled & regulated. Such as in a registered Limited Company, a plc, a quango etc.
An "infomal" set-up falls into the category of, say, those that are self-employed with a team of workers. Conditions of employment & suchlike can vary in a nefarious way.
Not to that is illegal, but variable and largely unregulated.
There should be no conflict between the two in a business environment, other than good old financial competition.
So the importance of either is back to the whole idea of making a profit. No profit - no social gain -no business. Applies to all in the commercial & governmental sphere of things.
Best of luck,
Bob