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Tharu Jossy
1 
2 
3 4
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.
Definition 
According to Chester Bernard , “Formal 
organisation is a system of consciously coordinated 
activities of two or more persons towards a 
common Objective”
 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
 It does not consider personal feelings of employees 
 Methods of communication will be clearly defined 
 Importance is for positions and not for individuals
 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
 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
Formal and informal org
Formal and informal org

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Formal and informal org

  • 2. 1 2 3 4
  • 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