1. Formal and Informal Organization
Sarah Olivarez-Cruz
Presenter

2. Formal Organization
• It is a controlled
network of people
governed by position
and responsibility

3. Informal Organization
• It is a network of
personal and social
relations which aroused
spontaneously as
people associate with
one another

4. Differences between IO and FO
Basis of Comparison Informal Group Formal Group
General nature Unofficial Official
Major Concepts Power and politics Authority and
Responsibility
Primary Focus Person Position
Source of leader power Given by Group Delegated by management
Guidelines of Behavior Norms Rules and Policies
Sources of control Sanctions Rewards and Penalties