View Of Management Expert, Bernard Elton Mayo on

Formal Organization:

• Referred to an organization as formal when the activities of two or more individuals are consciously coordinated towards the accomplishment of a given objective. He observes that formal organization comes into being when several persons:

· are able to communicate with each other,

· are willing to act, and

· share purpose

Informal Organization:

• Bernard regarded informal organization as joint individual activity without conscious joint purpose, even though contributing to joint results. All types of groups, namely, a bus load of passengers, people watching a cricket match, people walking do the street etc, fall within the compass of informal organization.

• Informal organization fosters communication between people and establishes pattern of behaviour, namely, conformity in speech dress, conduct or other behaviour and thereby promotes smooth group operations.

• The Formal organization refers to the structure of jobs and positions with defined functions and relationships. This type of organization is built by the management to realize the objectives on an enterprise.

Whereas

• For the Informal organization refers to the relationships between people in an organization based not on procedures but on personal attitudes, prejudices, likes and dislikes.