3. Refers to the collection of work groups that have been consciously
designed by Top management to maximize efficiency and achieve
organizational goals.
In formal organisation Responsibility, Authority, Accountability,
lines of command, clear definition of jobs etc. will be specified
Every subordinate is expected to obey his superiors in the formal
chain of command
It is a network of official authority responsibility relationships
and communication follows.
It is an official and rational structure.
4. Definition
According to Chester Bernard , “Formal
organisation is a system of consciously coordinated
activities of two or more persons towards a
common Objective”
5. It is deliberately created by the top management to achieve a
common goal
The principle of Scalar chain is strictly followed
Authority –Responsibility are clearly defined
It is based on division of labour and specialisation
It can be represented in an organisation chart
It has written rules
It emphasis on Job positions and not individuals
contd
6. It does not consider personal feelings of employees
Methods of communication will be clearly defined
Importance is for positions and not for individuals
7. Works of the organisation are done systematically and in an
order
No duplication or over lapping of work
Co-ordination and control become easy
Easy to fix responsibility for failure of work
It clearly defines Superior –subordinate relationship
8. There is a delay in completing the work
Social needs of workers are not taken into account
Works are given more importance than persons
Possibility of authority being misused
It discourages the spirit of individual initiative
