Every institution has two types of information systems: (a) Formal system and (b) Informal system.
The informal system arises naturally and spontaneously from the interactions among people. It blends with the formal system and together they form a workable information system of communication.
1. Characteristics of the Formal System of Information:
(1) It is goal-oriented and is tightly built around the general principles of organization.
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(2) It tends to be impersonal and mechanical.
(3) It is based on a hierarchy and power.
(4) Its size is large.
(5) It has a definite structure.
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(6) It is controlled using a rigid system of rules and regulations.
(7) There are fewer chances of information-distortions in the formal system.
(8) It operates mostly in the written form.
2. Characteristics of the informal System of Information:
(1) It emerges in order to satisfy the social needs of members.
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(2) It develops naturally and spontaneously and is based on interrelationships, friendships and shared personal interests.
(3) It has no structure.
(4) Its basic purpose is to improve human relationships.
(5) Its size is small and manageable.
(6) There are more chances of information-distortions in the informal system.
(7) There are no formal rules to control the informal communication system.
(8) It uses the grapevine and results in rumours, gossips, false information and resistance to change.
(9) It operates mostly in the oral form.