In any organization, the formation of groups is a crucial part, whether it is formed for the purpose of performing a specific task or for fulfilling social needs and desires. In the business and economics world, there are two types of groups i.e formal groups and informal groups. So, In this article, we will understand the complete difference between formal and informal groups. This blog has been arranged in the following order of concepts.
Definition Of Formal Groups
A formal group is said to be formed when a group of individuals/persons come together for achieving a specified objective, goal, or vision. An official group is created with the aim of fulfilling the official needs and requirements of a firm. A formal group has a specific structure where the roles and responsibilities of each individual are pre-defined by the management of an organization.
Moreover, formal groups help in increasing the work efficiency of an organization. Each part(member) of a formal group has to have good speaking skills and a prior experience in teamwork so as to ensure that a specific task has been performed as per the requirements of an organization. The formal groups communicate in a very professional and formal way in order to share their ideas, experiences, and thoughts with each other. The three types of formal groups are as follows.
- Command Groups- These groups mainly have the managers and their subordinates as their members.
- Committees- The group of individuals generally appointed by an organization, to handle specific or complicated matters, are called committees. The advisory committee, joint committee, selection committee, etc are some common examples of committees.
- Task Force- A formal group responsible for carrying out a specific task is known as a task force.
Definition Of Informal Group
On the other hand, the type of group that is generally formed simultaneously by the employees of an organization for their own sake, interests, and needs is known as an informal group. The idea and purpose behind the establishment of such kinds of groups is the satisfaction of psychological and personal needs. An informal group gets formed without any approval of the management and so the members of the such group are not subjected to follow any rules and regulations of the firm.
It sometimes becomes difficult to live in isolation or in a work-stressed environment. So people generally create a friendly environment where they interact and express their feelings, thoughts, experiences, information, etc with one another to make themselves relaxed and fresh. Also, the group member of informal groups communicate in an informal way and help each other in their hour of need. The bond and relation between such groups is quite strong.
Difference Between Formal And Informal Groups(Table)
| Basis For Difference | Formal Groups | Informal Groups |
| Definition | Formal groups refer to the groups created by the management of an organization for completing a particular task. | Informal groups are the groups created by the employees to meet their own personal, social, and psychological needs or desires. |
| Formation | Deliberately | Voluntarily |
| Nature | It may be permanent or temporary. | It tends to be permanent. |
| Authority | Given by the top management. | Authority structure is given by the members of the peer group. |
| Size | Large | Small |
| Importance Is Given | Position | Person |
Key Differences Between Formal And Informal Groups
Some of the key differences between formal and informal groups are given as follows.
- A formal group is said to be formed when a group of individuals/persons come together for achieving a specified objective, goal, or vision. On the other hand, the type of group that is generally formed simultaneously by the employees of an organization for their own sake, interests, and needs is known as an informal group.
- The management of an organization deliberately forms formal groups. On the other hand, informal groups are voluntarily formed by the employees of the company.
- While the relationship between the members of the formal groups is very professional, the relationship between the members of the informal groups is informal, personal, and casual.
- In an informal group, the importance of the member is defined by his/her position in the group. On the other hand, in an informal group, all the members are important equally.
- The size of the formal group is larger compared to the informal group.
- In a formal group, the flow of communication among the members is confined. On the other hand, the flow of communication in formal groups is quicker and stretched in all directions, as there are no boundaries set for it.
Conclusion
So, with the above discussions and explanations, we can conclude that the formal groups have specific tasks and objectives. On the other hand, the informal groups have no objectives to be accomplished. In an informal group, the importance of the member is defined by his/her position in the group. On the other hand, in an informal group, all the members are important equally.
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