Formal Organisation Structure
In the process of performing the organization’s function, management deliberately creates the organization’s formal structure, which stipulates how the organization is supposed to function. This formal structure is documented in the form of an organization chart, which typically denotes the following information:
The division of work among the workers
(1) The type of work performed.
(2) Superior-subordinate relationships.
(3) Communication channels.
(4) Subunit groups or components and
(5) The levels of management.
Formal Organisational Structure of business enterprise
Informal Organisation Structure
Often, there is a considerable difference between what is depicted in the organization chart and how day-to-day tasks are accomplished. Behind every formal structure is an informal structure, or a shadow structure, that exists apart from the formal organization and results from personal interactions, sentiments, and social activities. The following figure illustrates some of the informal relationships, lines of influence, and patterns of informational flow in organizations. Managers must pay particular attention to the understanding and potential use of the informal structure of an organization.