Formal and informal organisations are two important forms of social and administrative organisation. They coexist in almost every institution and influence the behaviour, communication and performance of individuals. While formal organisation is deliberately created to achieve predetermined objectives, informal organisation develops naturally through personal relationships, common interests and social interactions among members. A formal organisation is a consciously designed structure in which duties, responsibilities, authority and relationships are clearly defined. Its major characteristics include a definite objective, planned structure, division of work, hierarchy of authority, formal rules and procedures, and clearly established channels of communication. Positions are more important than the individuals occupying them, and relationships are generally impersonal and official. Authority flows through a recognised chain of command, and each employee has specified responsibilities. Formal organisations also emphasise coordination, discipline, accountability and organisational efficiency. The functions of formal organisation are closely related to the achievement of institutional objectives. First, it