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Advantages and Disadvantages of Formal & Informal Organizations
Organizations are nothing but bringing some people together to form a group to carry out a work that cannot be implemented or completed by a single individual. There are two forms of organizations that are known as formal and informal. Let us have a clear meaning of these two forms of group that are as follows:

Formal Organisations are those groups or the form of structure that is created to achieve systematic working and effective utilization of resources. This type of assembly is called or known as formal organisation or organizational structure.

Informal Organisations are those structures of people or individuals those interact with other colleagues or work buddies while working on a job position and forming an informal group inside a structural organisation.

Advantages of Formal Groups:

  • In a formal or structured organisation, the process of completion of a work, project or assignment is systematic, disciplined and smooth
  • These formal and structural organisations are mainly established in accomplishing objective goals.   

Disadvantages of Formal groups:

  • Work always gets delayed in a formal structure due to chain of command.
  • These formal structures or organisations always ignore the social and psychological needs of the employee.

Advantages of Informal Organizations:

  • It aids in fast communication
  • It helps in fulfilling the social needs of employees.
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