Formal organisations are those organisations in which the organised people works according to specific rules and regulations,and they also maintain the principles of scalar chain.There are many benefits of formal organisations.In the formal organisations the objective of the business are properly achieved. whereas informal organisation are those organisations in which no rules and regulations are followed.The purpose of this organisation is to create social environment in the organisation so,that the sentimental goals of the employees could be easily achieved. Both of the organisation are necessary in any working place.Because both of them have their own benefit.