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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.

Advantages: In formal organization goals are clearly defined,suitable for all type of businesses, task done in time, objective will be clear,

Disadvantages: doesn't allow flexibility, doesn't allow long term planing, lesson the scope of creativity.

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