Organizing is the next step after planning. Without an organizational framework and lines of reporting, there would be frustration, loss of productivity, and limited ability to pursue a strategy leading to the attainment of the planned objectives. Formal and informal organizations differ somewhat in their approaches. Informal organizations put more emphasis on people and relationships.
Formal organizations emphasize position within the structure.
Both systems have their advantages and disadvantages. For example some of the advantages of informal organizations are providing stability in the workplace and providing useful communications channels. Some of the disadvantages are resistance to change and initiation of rumors.