Formal Organisation

In this topic, you will learn about, Formal Organisation.

What is a Formal Organisation?

The formal organization refers to the structure of jobs and positions with clearly defined functions of responsibility and authority. A formal organization has its activities clearly defined between the people and concisely coordinated towards a common objective.
In any business organization, the importance of formal organization cannot be ignored. The formal organization in a more or less arbitrary structure to which an individual must adjust it tells him to do certain things in a specific manner. It also gives instructions to the individual as to other corporate also.

The four pillars or characteristics of a formal organization are:

  1. Division of labor: The above-mentioned four characteristics of a formal organization are also known as the principle of formal organization. The whole work is divided into a small operating and each operation is performed by a different person so that there is a maximum specification.
  2. Scalar and functional process: For every business organization, the scalar or functional process implies the growth of the organization should be not only vertical but it should be horizontal as well.
  3. Structure of the organization: The structure of the organization refers to the overall arrangement in the organization which refers to or ensures a proper balance between the different parts of the organization and secures of execution of all operations, it should also ensure achievement of organizational objectives.
  4. The span of control: The span of control refers to the number of subordinates as well as the superior directly reporting and accountable to the superior.

Thus, from the above discussion, we can conclude that for the success of any business organization formal organization is the official hierarchy as it appears the followed characteristic:

  1. It is deliberately and impersonal.
  2. It is based on the based relationship.
  3. It is based on the hypothesis of the nature of human beings.

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