| Formal organisation | Informal organisation |
| 1. It is deliberately created by top level management. | 1. It arises automatically as a result of social interaction among the employees. |
| 2. it has predetermined purpose | 2. It has no predetermined purposes. |
| 3. It id highly rigid. | 3. It is more flexible. |
| 4. Communication is allowed through the scalar chain. | 4. Communication is allowed through all channels networks. |
| 5. managers are leaders. | 5. Leaders are chosen voluntarily by the members. |
| 6. It is based on authority and responsibility. | 6. There is no authority and responsibility relationship. |