Formal Organization (BCA 3rd sem)

Formal organization is a fixed set of rules of intra-organization procedures and structures. As such, it is usually set out in writing, with a language of rules that leave little discretion for interpretation. In some societies and in some organization, such rules may be strictly followed; in others, they may be little more than an empty formalism.

• To facilitate the accomplishment of the goals of the organization: In a formal organization the work is delegated to each individual of the organization. He/She works towards the attainment of definite goals, which are in compliance with the goals of the organization.
• To facilitate the co-ordination of various activities: The authority, responsibility and accountability of individuals in the organization is very well defined. Hence, facilitating the co-ordination of various activities of the organisation very effectively.
• To aid the establishment of logical authority relationship: The responsibilities of the individuals in the organisation are well defined. They have a definite place in the organisation due to a well defined hierarchical structure which is inherent in any formal organisation.
• Permit the application of the concept of specialization and division of Labour, division of work amongst individuals according to their capabilities helps in greater specializations and division of work.
• Create more group cohesiveness.

Characteristics of a formal organization

• Well defined rules and regulation
• Arbitrary structure
• Determined objectives and policies
• Status symbol
• Limitation on the activities of the individual
• Strict observance of the principle of co-ordination
• Messages are communicated through scalar chain

Advantages: In formal organization goals are clearly defined,suitable for all type of businesses, task done in time, objective will be clear,

Disadvantages: doesn't allow flexibility, doesn't allow long term planing, lesson the scope of creativity.