3. Organizing, or the process of
organization, is a function of
identifying,classifying,grouping &
assigning various activities
necessary to achieve objectives and
prescribing authority relationships
in the enterprise.
What is Organization…???
FORMAL INFORMAL
ORGANIZATION
5. According to Allen,
"The formal organization is a
system of well-defined jobs, each bearing
a definite measure of
authority,resposibility & accountability.
The whole is consciously designed to enable
the people of the Enterprise to work most
effectively together in accomplishing their
objectives.”
6. Features:-
• It is deliberately created…
• Clearly defined responsibility and
authority...
• Delegation of authority…
• Unity of command…
• Promotion is from bottom to top…
• Impersonal relationship…
• Position is supreme…
8. According to Keith Davis,
”A Network of personal and social
relations not established or required by the
formal organisation but arising spontaneously
as people associate with one another.”
9. Features:-
• Born spontaneously…
• Informal relationship…
• No organisation charts…
• No written rules, regulations,
procedures…
• Universal in nature…
• Relativity unstable…
• Emphasises people and relations…
10. Distinguish Between,
Formal & Informal
OrganizationFormal
Organization
• It signifies
official
relationships
of the
employees
positions and
the jobs
pertaining to
their positions.
• It results from
clearly defined
relationships
Informal
Organization
• It signifies non-
official & personal
relationship in an
enterprise.
• Its develops outside
formal organisation
without any defined
behavior pattern and
set relationships.
11. • It emphasises
positions in
terms of
authority and
functions.
• It follows the
official chain of
command since it
is based on
delegated
authority.
.Formal authority
attaches to a
• It emphasises on
people and their
relationships.
• It does not follow
the chain of
command because
power under it is
earned or given
permissively by
group members.
• Informal
authority
Formal Organization Informal Organizati
12. • It is controlled
by
management.
• It can be
abolished by
management.
• It is not
subject to
management
control.
• It cannot be
abolished by
the
management.
Formal Organization Informal Organizatio