Formal Plans & Informal Plans: Formal plans are plans which are reduced to black and white (i.e., put on paper). In other words formal plans are plans which specify in writing the specific objectives to be achieved and the steps to be taken to achieve those objectives. Formal plans are systematic and rational. They are quite necessary for the successful running of a concern.

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Informal plans are mere thinking by some individuals of a concern. Of course, informal plans in future. Informal plans promote unhealthy tendencies like carelessness, ineffective employee performance, etc. informal plans are not (;’f much use for the smooth running of the enterprise.

 

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