Posted by Anjali Kaur on Dec 08, 2020

The Formal Organization

Formal organization refers to the organization structure which is designed by the management to accomplish a particular task. It specifies clearly the boundaries of authority and responsibility and there is systematic coordination among various activities to achieve organizational goals.

Let’s learn more about it.

A quick note: Subscribe to our website to get answers to your questions.

Formal organization structure clearly spells out the job to be performed by each individual, the authority, responsibility assigned to every individual, superior-subordinate relationship, and designation of every individual in the organization.

Features of The Formal Organization

  1. It is created intentionally by the process of organizing.
  2. The purpose is the achievement of organizational goals.
  3. Each individual is assigned a fixed authority or decision-making process.
  4. It results in the creation of a superior-subordinate relationship.

Advantages of The Formal Organization

  1. Systematic working
  2. Clarity of duty
  3. Unity of command
  4. The accomplishment of goals.

1. Systematic Working

It is easier to fix responsibility since mutual relationships are clearly defined.

2. Clarity of Duty

There is no confusion among members regarding duties.

3. Unity of Command

It is maintained through an established chain of command.

4. Accomplishment of Goals

Formal organisation helps to achieve organisation goals.

5. It plays more emphasis on work.

Disadvantages of the Formal Organisation

  1. Delay in action
  2. Ignores social needs of employees
  3. Emphasis on work only

Let’s discuss these.

1. Delay in action

Due to chain of command, actions get delayed in formal structure.

2. Ignores social needs of employees

This structure does not give importance to the psychological and social needs of employees which may lead to demotivation of employees.

3. Emphasis on Work only

It gives importance to work only, it ignores human relation, creativity, etc.

Thank You!

You can read more topics related to business studies:

Consumer Protection

What is marketing management?
Consumer Protection Act, 1986

Marketing Mix
The 5 marketing management philosophies

Advertising in Promotion Mix
Marketing Mix- product

Promotion- Marketing Management
What are the functions of marketing management?

Marketing Mix Element- Price

Personal Selling
Packaging as an element of the marketing mix

Place mix in marketing

Feel free to join our Facebook group and subscribe to this website to get daily educational content in your mailbox.

Happy Learning!

Disclosure: Some of the links on the website are ads, meaning at no additional cost to you, I will earn a commission if you click through or make a purchase. Please support me so that I can continue writing great content for you.

Photo by Alejandro Escamilla on Unsplash

Comments are closed.

Learn with Anjali started because there wasn't an easy-to-consume resource to help students with their studies. Anjali is on single-minded mission to make you successful!

If you would like to suggest topics, leave feedback or share your story, please leave a message.

Leave a message