Formal vs Informal Groups

Distinction Between Formal and Informal Groups

• Formal groups are structured and planned to serve organizational interests, while informal groups emerge voluntarily and spontaneously.
• Formal groups are based on interdependence of operations or mutual dependence on a common boss, while informal groups develop naturally within the formal organization.
• The main purpose of formal groups is to serve the organization, while the purpose of informal groups is to provide social satisfaction and stability to work groups.
• Authority in formal groups is given by the institution to the position, while in informal groups it is earned or given permissively by the members based on age, seniority, competence, etc.
• Communication in formal groups follows a strict chain of command, while in informal groups all messages are passed through informal channels.
• Behavior of members in formal groups is regulated by rules and regulations, while in informal groups behavior is controlled through norms, values and beliefs of the group.
• Formal groups tend to be larger while informal groups tend to remain smaller to keep it within the limits of personal relations.
• Formal groups are stable in character while informal groups are unstable due to sentiments and feelings of the group members.
• Members in formal groups are rewarded or punished according to formal rules and regulations, while in informal groups recognition is mainly through non-financial rewards or punishments in terms of feelings, status, and prestige.
• Formal groups can be abolished by management, while informal groups cannot be destroyed as attempts to destroy it may lead to the formation of several other groups.
• The whole organization is divided into several units and subunits working for the common cause in formal groups, while a large number of informal groups are found in an institution, and an individual may be a member of multiple informal groups.
• Regardless of size or purpose, every group has similar characteristics: two or more persons, formal social structure, common fate, and common goals with emotional connection.