Introduction
Formal organization is a type of organization (group of two or more people) which is created to accomplish specific tasks to achieve certain goals or objectives. Jobs, authority and responsibilities are properly classified among the members according to their skills and abilities. It follows specific rules and proper chain of command. Business firms, schools, colleges, hospitals etc. are some examples of formal organization.
Features Or Characteristics Of Formal organization
Some notable characteristics of formal organizational structure can be pointed out as follows:
1. Properly Structured And Well-planned
Formal organization is deliberately created to perform certain tasks. Therefore, it is well structured and properly planned than informal organization.
2. Goal Oriented
Another key feature of formal organization is that it is created to achieve predetermined goals and objectives. Therefore, it is goal-oriented structure.
3. Stable And Long-lasting
It is formed to obtain long-term goals of the organization. Therefore, formal organization is more stable and long-lasting in nature than informal organization.
4. Division Of Work And Specialization
Formal organization practices division of work in the workplace. Duties and responsibilities are assigned according to the skill, ability, knowledge and experience of the employees. So, it promotes specialization and division of work in the organization.
5. Emphasis On Work
Another characteristic of formal organization is that it gives focus on work and performance of the members rather than interpersonal relations among employees. It gives emphasis on organizational goals rather than personal goals of the members.
6. A Clear Hierarchy
Hierarchy of authority is clearly mentioned in this organizational structure. Roles, authority and responsibility are delegated according to the position of the employees.
Also Read
Advantages and disadvantages of formal organization
Advantages and disadvantages of informal organization
Characteristics of informal organization
7. Unity Of Command
Because of proper structure, well defined rules and procedures, clear hierarchy and strict chain of command unity of command is possible in formal organization.
8. Compensation
In this type of organizational structure, working hours and remuneration are fixed for the employees according to their positions and nature of their jobs.
