Formal and Informal Information:
Definition, Explanation and Difference:
Formal information are designed and built to satisfy precise information requirements. They are appropriate when it is possible to predict what information will be needed to take decision. For example, all types of transaction processing systems (TPS), management information systems (MIS).
Informal information fit in with the social structure of the organization, and is very useful in supplying the sort of information that is difficult to predict. They involve discussions, chats, telephone calls, litters and memoranda. information can be passed as the need is perceived, or as a by - product of social interactions.
Some of the questions, which can be asked but cannot be incorporated in formal information systems, are:
- How is formal information used?
- Do the MIS encourage short run behavior?
- Do managers manage their reports rather than real operation?
- How reliable is the data on which formal information is based?
- What informal or private information is used? How does it differ from formal information? is it more effective?
Such review finds that private files are kept and informal information is widely used, then formalization should be considered.