principle of management (POM) anna university unit - 3 pom difference between informal and formal organization

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UNIT -3
ORGANIZING

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ORGANIZING
Organizationis the processofidentifying&groupingof theworkstobeperfor

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formal & Informalorganization
Formal Organization
1.Formal organizationis established with theexplicit aimof achievingwell-defined
goals.
2.Formal organizationis boundtogether by authorityrelationshipsamong
members. Ahierarchicalstructureiscreated, constitutingtopmanagement,
middlemanagement andsupervisory management.
3.Formal organizationrecognizes certaintasks which are tobe carriedout
to achieveits goals.
4.Theroles andrelationshipsof people informalorganizationare impersonally
defined

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5.In formalorganization,muchemphasisis placed on efficiency,
discipline, conformity,consistencyandcontrol.
6.In formalorganization,thesocial andpsychologicalneeds and
interests of members of theorganizationget littleattention.
7.Thecommunicationsystem in formalorganizationfollows certain
Pre-determinedpatterns andpaths.
8.Formal organizationis relativelyslow to respond andadaptto
changingsituationsandrealities.

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Advantagesof formalorganization
Reduces confusion
Ensuresspecialization
Fixingof responsibility
Help in achievement of objectives
Providestability tothefirm
Increase organizationalefficiency
Disadvantagesofformal organization
Reduced Initiatives
Lack ofmatchbetween objectives
Delay in workdueto rules & regulations
Disturbancein relations

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Informal Organization
1.Informalorganizationsprings onits own.Its goals areill defined
andintangible.
2.Informalorganizationis characterizedby a generalizedsort
of power relationships. Power ininformalorganizationhasbases
other thanrational legalright.
3.Informalorganizationdoes nothaveany well-definedtasks.
4.In informalorganizationthe relationshipsamongpeople are
Interpersonal.

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5.Informalorganizationis characterizedby relative freedom,
spontaneity, byrelativefreedom, spontaneity,homelinessandwarmth.
6.In informalorganizationthe sociopsychological
needs, interests and aspirationsofmembers get priority.
7.In informalorganization,the communicationpattern is
haphazard,intricateandnatural.
8.Informalorganizationis dynamicandvery vigilant.It is sensitiveto its
surroundings.

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Advantages of informal organization
Cooperation
Sense of Belonging ness (Stress free)
Fast communication
Aid (Help or assist ) on the job
Disadvantages of informal organization
Resistance to change (sometimes managementare not
accepted )
Clash (fight) in interest
It is very much affected bythe rumors
Disturbance in relations
Problem due to informal relations

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THE END