Difference Between Formal Groups and Informal Groups (With Table)

Formal groups are the groups that are designated officially intended to do formal communication. The formal groups are designed on a hierarchical structure with some designated tasks related to its function. In business organizations, the formal groups might be the human resource group or the finance group. The formation of this type of group is generally done by the management of the organization. 

Informal groups are the groups that are not organizationally influenced or determined and generally formed by the employees themselves intended to do informal communication. For example, if employees with cultural similarities make a group communicate with each other, or employees formed a group during recess to help each other with work will be considered as an informal group.

Comparison Table Between Formal Groups and Informal Groups

What is Formal Groups?

Formal groups are the groups that are formed collectively, consciously, and deliberately to direct the group members’ effort towards achieving the specific objective of the goal. In business organizations, a formal group might be the human resource group or the finance group. The formation of this type of group is generally done by the management of the organization. 

In formal groups, only the management of the organization has the authority. Formal groups are formed by the management and are designed on a hierarchical structure with some designated tasks related to their function. Members of formal groups act according to the rules and regulations set by the organization’s management. 

Generally, formal groups relate to the organizational goal and can either be temporary or permanent. The permanent type of formal group is considered as the top management team of the organizations like finance team, management committee, board of directors. On the other hand, temporary types of formal groups are formed to achieve some set of organizational objectives.

Formal groups are of two types- homogeneous and heterogeneous teams. The homogeneous team includes common ethnicity, demographics, common technical expertise. On the other hand, heterogenous teams include diverse team members. Managing a homogeneous team is easier compared to managing a heterogeneous team. As a result, homogeneous teams are preferred by the management when forming a formal group.

What is Informal Group?

Informal groups are the groups that are formed unofficially intended to do informal communication. For example, if employees with cultural similarities make a group communicate with each other, or employees formed a group during recess to help each other with work will be considered as an informal group. 

Informal groups are formed outside the official hierarchy of the organization, rather it is formed based on social and personal interactions. In informal groups, members act according to the group and personal interests. 

According to the characteristics, informal groups are divided into four groups- conservative, strategic, erratic, and apathetic. The Conservative group has moderate internal unity and the pressure for achieving objectives is little. Strategic groups are well-planned groups and put pressure on the members to achieve objectives. Erratic groups have centralized leadership with autocracy, inconsistent behaviour, and poor control. Apathetic groups have unacceptable leadership, internal disunity.

Informal groups create a pleasant work environment and work performance in informal groups becomes easier for cooperation. Informal groups provide psychological support to all of their members. Group cohesiveness in informal groups reduces the rate of absenteeism and turnover. But supervising an informal group is difficult as it runs based on the personal and group interests of the group.

Main Differences of Formal Groups and Informal Groups 

1. The formal groups are the groups that are formed officially intended to do formal communication. The informal groups are the groups that are formed unofficially intended to do informal communication.
2. In formal groups, only the management of the organization has the authority. On the other hand, in informal groups, the people have the authority.
3. Formal groups are formed by the management and are designed on a hierarchical structure with some designated tasks related to their function. On the contrary, Informal groups are formed outside the official hierarchy of the organization, rather it is formed based on social and personal interactions.
4. In formal groups, members act according to the rules and regulations set by the organization’s management. In informal groups, members act according to the group and personal interests.
5. Supervising the formal groups is easier compared to informal groups as there are specific rules to guide. Supervising the informal group is difficult as it runs based on the personal and group interests of the group. 

Conclusion

Both formal groups and informal groups are an important part of the workplace. The members of formal groups and informal groups are often the same. The difference was seen in the characteristics and objectives of the groups. There are several differences between formal groups and informal groups.

The main difference between formal groups and informal groups is that formal groups are formed to do official works of the organization and does the formal communication through the channels which are officially designated. On the other hand, informal groups are the groups that are formed by employees themselves unofficially. Informal groups are formed based on relations, attitudes, and personal preferences of the employees.

References

1. https://www.worldscientific.com/doi/abs/10.1142/9789812772107_0006
2. https://journals.sagepub.com/doi/abs/10.1177/002224377601300304