In this related article, I will explain the (i) Meaning of formal organization, (ii) Features of formal organization, (iii) Characteristics of formal organization, (iv) Advantages of formal organization, (v) Disadvantages of formal organization…
Meaning of Formal Organization
What is a Formal Organization??
Formal Organization is a form of the proper structure of authority and responsibility that helps to define the delegation of authority and contractual relationships among various members.
It allocates the set of plans, policies, procedures, programmes, and schedules.
In the formal organization, the series of structure works with formal authority, responsibility, rules, regulations, and channels of formal communication also. These are a structured way to present any formal way of management.
Features / Characteristics of Formal Organization
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The features of a formal organization are also known as characteristics of formal organization and it has various points of series such as:-
1. Formal Authority Structure:
This is a form of structure that shows the relationship between individuals. They create a relation between top to lower-level management and as well as define the authority position in the organizational hierarchy channel. It follows the procedure of right to perform, right to command, right to make decisions, and right to spend or utilize resources.
Therefore, the formal structure indicates the official relations so that the organization can achieve an authoritarian relationship and also make a relationship healthy.
In this characteristics of formal organization, the job-oriented activity is totally focused on their job posts more than peoples. It assigned jobs to peoples and establish the structure of relationships to achieve formal organizational goals.
In other words, the job-oriented activity helps to specialized the jobs according to their qualification and skills. As well as, they establish or coordinate the relations among various individuals.
3. Division of Work:
This is the third characteristics of formal organization and it means that in an organization, work is categorized into smaller units and specialized to individuals on the basis of their abilities, attitude, personality, and skills.
The division of work is divided according to their work specialization and helps to enhance or increase an organizational output.
Departmentation is a part of organizational structure, i.e, they categorized the structure of the department in an organization. Departmentation means to a division of work into smaller units or parts and restructuring into bigger units or departments on the basis of similarity of activities.
An organization divides the departments into various names like production, personnel, marketing and so on.
In this characteristics of formal organization, work is transferred from top to lower levels. The workload is divided into different units, a part is assigned to subordinates with authority to carry out the assigned task.
Therefore, the concept of scalar chain and division of work are also known as delegation. In simple words, delegation means to transfer something from one individual to another individual.
In this characteristic, managers try to integrate the business activities with their individuals and units into a concerted effort so that the departments and individuals can work together to achieve their goals.
However, manager coordinates the activities of an organization by discussing organizational goals to various departments and link them to another departmental also.
Advantages of Formal Organization
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The advantages of a formal organization are also known as the merits of formal organization. It includes various points such as:-
1. Define Objectives:
This is the first advantage of formal organization and it means that the objective of the organization can achieve its a goal with the help of proper authority-responsibility relationships between individuals.
2. Optimum Utilization of Resources–
In the formal organization, the departments and their managers are always focused on organization resources (whether it is human, material, or financial resources) so that the company can utilize them in an effective manner.
If resources are fully utilized, then it provides a sound organization structure and better production system.
3. Division of Work-
In an organization, the head management categorized all tasks or works according to their employees or employers qualification so that they can give 100% in our organized work.
If an organization wants to achieve the target or goal, then it will have to do a proper division or categorization of work according to their specialization and their field of experience.
4. Maintain Organization Hierarchy-
In every organization, the management follows the channel of the hierarchy so that through which they can assign the task and opportunity equally. They help to avoid overlapping of activities between two individuals or two basic departments.
5. Reduce the rate of Absenteeism-
In the formal organization, the objectives, policies, procedures, strategies, and other factors are seen very clear. So, that is the reason, the rate of absenteeism (the rate at which people join and leave the organization) remains low.
The lesser the rate of absenteeism, the more organization will work well.
Disadvantages of Formal Organization
The disadvantages of formal organization are also known as the demerits of formal organization. It includes various points such as:-
1. Lack of Initiative-
In the formal organization, the rules and regulations play a very important role. The top-level holds an authoritarian task and similarly, middle or lower-level holds the managing task. So, that, the workers feel very useless when they haven’t right to use their innovative skills to perform organizational goals.
So, that is the reason, they lose their initiative and innovative abilities due to strict rules and policies.
2. Unsatisfied Social Needs-
An individual is a type of human being. He/She needs to interact with peoples and share his/her voice or feelings at work and off-work to other individuals.
In the formal organization structure, an interaction between two or more persons is strictly prohibited without any legal work because the motive of formal organization is to follow the chain of command, not a personal relationship.
Social affections are totally ignored in this organizational structure series.
So, I hope you have learned the meaning, features, advantages, disadvantages, and characteristics of formal organization.