What Is Formal Organization ?
Formal organization refers to the type of organizational structure that is formed to obtain specific goals or objectives. In this structure, jobs and responsibilities are properly defined and classified among the members according to their skills and abilities. It has own set of rules, hierarchical structure and established chain of command.
Advantages Of Formal Organization
The main advantages of formal organization can be pointed out as follows:
1. Smooth Functioning
One of the main advantages of formal organization is that goals and objectives are clearly defined and duties and responsibilities are properly classified according to the interest, capability and skills of the members. So, it ensures smooth functioning and systematic working environment.
2. Avoids Duplication Of Work
Tasks are divided among different departments, sections, units and members of the organizations according to the nature of the job and abilities of the employees that helps to avoid duplication of work.
3. Unity Of Command
Formal organizational structure follows strict chain of command that helps to maintain unity of command.
4. Easy To Achieve Goals
Because of proper distribution of tasks and unity of command, it helps to increase the efficiency of the members that helps the organization to achieve its goals easily.
5. Specialization And Division Of Labor
As we know that duties and responsibilities are divided as per the knowledge, skills, abilities and experience of the employees, it promotes specialization and division of labor in the workplace.
6. Stability
Formal organization is more stable than informal structure because it is formed systematically to achieve long-term goals.
7. Coordination And Cooperation
It promotes coordination, cooperation and sense of team spirit in the workplace. It helps to make better relationship among the members.
8. Easy To Fix Accountability
In this type of organization, authority and responsibilities are fixed according to the ability of the employees. So, it is easy for the management to establish accountability.
Disadvantages Of Formal Organization
The main drawbacks or disadvantages of formal organization can be highlighted as follows:
1. Slow Decision Making Process
One of the major drawbacks of formal organization is that it takes long time to make decisions. Decision making process is slow because of the scalar chain and chain of command.
2. Rigid And Inflexible
Formal organization is inflexible than informal organizational structure. Because of strict chain of command, different rules and regulations it is difficult to adjust or change as per the change in environment.
3. Costly
It is costlier and resource consuming structure. It requires huge investment and resources to form and run formal organizations.
4. Ignores Social And Psychological Needs
It gives emphasize on work and ignores social and psychological needs of the employees in the organization. So, it may decrease employee motivation and job satisfaction.
Also Read
Advantages and disadvantages of informal organization
Characteristics of formal organization
Characteristics of informal organization
5. Lacks Creativity
As we know that this structure is formed to obtain certain goals and objectives and employees have to accomplish their tasks by following strict rules and specific procedure. So, it lowers the scope of creativity and innovation.
Pros And Cons Of Formal Organization In Brief
Pros:
* It is more stable and effective than informal organization
* It promotes coordination and coordination in the organization
* It is easy to fix accountability
* Goals and objectives can be achieved easily
* It follows proper chain of command
* It increases the organizational efficiency
Cons
* It delays the decision making process
* It is inflexible and rigid by nature
* It focuses only on work and ignores employees welfare
* It may demotivate the members
* It requires more cost and resources
