The formal organization consists of the formally recognized and established statuses of the members. The relationship between the members is more a status relationship than a personal relationship. The informal organization consists of role rather than statuses.The relationship between the members is more a personal relationship or role relationship than the status relationship.
There is authority in formal organizations hence there is super ordination and subordination. Individuals are valuable because of their status and prestige. There is leadership in informal organization; hence we find dominance and submission. Individuals are valuable because of their roles and esteem.
The norms of formal organization differ. They are found in the form of written rules, regulations, laws contracts or constitutions. The norms are more subtle. They are also informal. They may be found in the form of customs, morals, folkways, belief and they are not written.
Formal organizations may have long history of their own. The state or clubs etc are relatively permanent and stable. Informal organizations are not very permanent. Informal organizations may develop into formal organization.
Formal organizations are comparatively more inflexible. It is not easy to bring change in them for example it is not easy to bring change or amendment in the constitution. Informal organizations are more flexible. There is no rigidity here. Changes can be brought forth easily. It requires only the change in attitudes of the members.