The salient features of formal organization are as follows: (i) Organization structure is laid down by the top management

to achieve organizational goals. (ii) Organization structure is based on division of labor and specialization to achieve efficiency in the operations. (iii) Organization structure concentrates on the jobs to be performed and not the individuals who are to perform jobs. (iv) The organization does not take into consideration the sentiments of organizational members. (v) The authority and responsibility relationships created by the organization structure are to be honored by everyone.

ollowing are the main characteristics of informal organisation: (1) Based on Formal Organisation: This is based on formal organisation where people also have informal relations. (It means first of all the formal organisation is established and then informal organisation is created out of it.) (2) It Has No Written Rules and Procedures: In this organisation, there are no written rules and procedures to govern interrelationship. But there are group norms which have to be observed. For example, employees working in an organisation and belonging to a particular community form a separate group in an informal way. Gradually some norms do emerge like helping the member of their group to find solution to the problems related to his work or his own self. Similarly, they protect the members of their community from the managerial exploitation. In this way, all the persons joining this informal group will be bound to observe the norms of the group. (3) Independent Channels of Communication: In this organisation, relations among different people are not defined because a person at the lowest rank can have direct contact with the person at the highest level. The flow of communication cannot be specified. (4) It is not deliberately created: Informal organisation is not deliberately created. It emerges out of mutual relationship and tastes. (5) It Has No Place on Organisation Chart: Informal organisation has no place on the properly prepared organisation chart. Moreover, there is no information about it even in the organisation manual. (6) It is Personal: Its being personal means that under this the feelings of individuals are kept in mind and nothing is imposed upon them. (7) It Lacks Stability: There is generally a lack of stability in such an organisation. For example, an individual mixes with one group of people today but can cross over to another group tomorrow. Not only this, an individual can be a member of more than one group at a time.