Assume you’re an employee in a company of your choice. Now, you will interact with a certain set of people, out of your [duty]. Additionally, as you spend time here, you might make [friends] out of your work relationships, because [humans] are social animals. It is important to realise how both of these relationships give rise to types of organisation.
- Formal Organisation
- Informal Organisation
In every [enterprise], there are certain rules and procedures that establish work relationships among the employees. These facilitate the smooth functioning of the enterprise. Further, they introduce a systematic flow of interactions among the employees. Effectively, all of this is done through a formal [organisation].
Notably, the management is responsible for designing the formal organisation in such a way that it specifies a clear boundary of [authority] and responsibility. Coupled with systematic [coordination] among various activities, it ensures achievement of organisational goals.
It’s easy to understand that if we interact with certain people regularly we tend to get more informal with them. This is because we develop interpersonal relationships with them which are not based solely on work purposes. Rather, these relationships might arise because of shared interests, like if you get to know that your colleague likes the same football club of which you’re a fan of.
As a matter of fact, informal organisation arises out of the formal organisation. This is because when people frequently contact each other we cannot force them into a rigid and completely formal structure. Instead, they bond over common interests and form groups, based upon friendship and social interactions.