What do you understand by the term formal organizations state its advantage and disadvantages?

Answer 1

Formal organization:- 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 ostensibly 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. Formal organization refers to the organization structure which is designed and prescribed by the management of an enterprise. It is generally, but not necessarily, represented in the form of an organization chart showing designation of various people employed in the organization, their hierarchical levels, reporting relationships, and other channels for control and coordination. This chart is backed up by a more detailed description of duties and responsibilities of each position shown in the organization chart. This formal organization represent the structure of duties, responsibilities and working relationships formally prescribed in the organization. Formal Organizations have a chain of command and empowered officers to enforce the agreed upon rules. Any formal organization qualifies, Rotary Club, Boy Scouts, Ford Motor Company. All have a Charter stating their place and function in society, all have rules of behavior and officers to enforce compliance to those rules. Properties of formal Organization:- Formal organizational structure have two key properties: 1) They are rationalized and impersonal prescriptions that identify various social purposes as technical ones and specify in a rule-like way the appropriate means to pursue them rationally.

2) They are highly institutionalized and thus in some measure beyond the discretion of any individual participant or organization. They must be taken for granted as legitimate. Advantages of formal Organization:- The benefits and advantages of formal organization include the following. * They provide the basic structure of division of work and responsibilities. Without such a structure it will e very difficult for employees to agree between themselves on duties and responsibilities of each, and such difficulties multiply in geometric proportions with increasing size of the organization. * It generates clarity on what support and input each employee can expect from others, and in turn what is expected of him by others. * It promotes discipline in the organization. * It makes it easier to review and revise organization with changing requirements. * It provides a structure for laying down pay scales and taking other decisions linked to organizational levels. * It helps in other human resources development activities such as recruitment, promotions, career planning and development and manpower planning.