Question 3 OR (a)
Formal and informal organisation structures compared
9 marks
- Time to write
- About 18 minutes
- Notes
- Crux notes
Question
Question 3 OR (a) · 9 marksDifferentiate formal organisation structure from informal organisation structure? (9)
The same question was set as 7353-Q3bOR; this answer serves both.
Reworded from the university paper; the task is the same. The original paper belongs to the University of Delhi. See DU's question bank.
Before you write
Read off the question and its marks
Write it in this order
- Read; underline the asks; jot your points 1 min
- 1 Formal organisation structure 2 marks 4 min
- 2 Informal organisation structure 2 marks 3 min
- 3 Comparison 4 marks 7 min
- 4 Relationship and conclusion 1 mark 2 min
- Check: every ask answered, key terms underlined 1 min
Short on time? Trim steps 1–3 evenly rather than skip one: each is capped at its own marks. End with step 4 in a line or two.
Try it first. About 18 minutes for 9 marks. Write it out, then open the solution.
Solution
Hover or tap a marked figure, like 72,000, to see how it is made and where else it appears.
The formal organisation is the structure deliberately designed by management to achieve the organisation's objectives. It sets out positions, the division of work, lines of authority and responsibility, rules and official channels of communication, and is usually shown on an organisation chart and in job descriptions and manuals. It is impersonal: positions exist whoever fills them. Examples are departments, the reporting line from a section officer to a manager, and committees set up by the board.
1On the ward round, the chart decides who reports to whom.
Formal organisationThe structure of positions, authority, rules and official channels designed by management
2At the canteen table, the same three talk freely over chai—no chart in sight.
Informal organisationThe network of personal and social relationships that arises naturally among people at work
3When the trolley rushes in, chart and chai together move as one team—two blades of one scissor.
Each needs the otherFormal and informal organisations are complementary, like the two blades of a pair of scissors.
Informal organisation structure
The informal organisation is the web of friendships and personal ties that grows up on its own as people work together. It is based on friendship, shared interests, common background and proximity. It has its own leaders, norms and channel of communication, the grapevine, but no written rules. It does not appear on the official organisation chart and exists within, and alongside, the formal structure. Examples are groups of colleagues who lunch together or travel together, or an experienced worker whom others consult regardless of rank.
| Basis | Formal organisation | Informal organisation |
|---|---|---|
| How it comes about | Designed on purpose by management | Grows up on its own as people mix |
| What it is for | Reaching the organisation's goals | Meeting members' need for company, support and belonging |
| Who leads | Managers appointed to posts | Whoever the group itself looks up to |
| Where authority comes from | The position, passed down from the top | The members, who give it to people they respect |
| What guides behaviour | Rules and procedures | What the group expects of its members |
| How control works | Rewards and penalties | Approval or disapproval of the group |
| How messages travel | Official channels, along the chain of command | The grapevine: fast and in every direction, but often unreliable and easily distorted |
| What it rests on | Positions and official relationships | Personal liking, tastes and interests |
| Whether it shows on the chart | Yes | No; it keeps changing |
| Size | Can be very large | Usually small groups |
| How long it lasts | Stable and lasting | Shifts as members come and go |
The two co-exist and influence each other. The informal organisation can support the formal one by speeding communication, filling gaps in rules, building team spirit and giving workers a sense of belonging. It can also undermine it: a group may quietly agree how much work counts as enough, close ranks against a new method, or pass on half-true stories faster than management can correct them. Managers should neither ignore nor suppress it, but understand it, work with informal leaders and use the grapevine to complement official communication.
Example. A company's chart shows that machine operators report to the shift supervisor, but in practice they turn to a senior operator for advice on difficult jobs. A supervisor who involves that operator in training new workers uses the informal structure to strengthen the formal one.
Formal and informal structures differ in origin, purpose, authority and communication, but both are present in every organisation. Effective management aligns them so that the informal network supports the formal goals.
Where the 9 marks sit
| # | Component | Marks |
|---|---|---|
| 1 | Formal organisation structure | 2 |
| 2 | Informal organisation structure | 2 |
| 3 | Comparison | 4 |
| 4 | Relationship and conclusion | 1 |
| Total | 9 |
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