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Question
Differentiate between formal and informal organisations on the basis of (i) origin, (ii) authority, and (iii) flow of communication.
Solution
| Basis of Difference | Formal Communication | Informal Communication |
| Origin | It originates from the defined authority and hierarchy in the organisation. | It originates from social interactions among the employees and the need of employees to exchange views. |
| Authority | Members are bound by a hierarchical structure. Due to formal and impersonal relationships, superior or top-level managers have a higher level of authority than subordinates. | Members have equal authority due to informal and personal relationships among the employees. |
| Flow of Information | The information has to pass through various formal communication channels. | Information is free to flow and no formal channels are followed. |
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