Management Concepts & Organisational Behaviour - Formal And Informal Organization

Formal Organization

   Posted On :  18.05.2018 01:09 am

Chester I Barnard defined formal organization as “a system of consciously coordinated activities or forces of two or more persons”.

Formal Organization
 
 
Chester I Barnard defined formal organization as “a system of consciously coordinated activities or forces of two or more persons”. A formal organization is deliberately designed to achieve specific objectives. It refers to the structure of well defined jobs, each bearing a definite measure of authority, responsibility and accountability. The structure is consciously designed to enable the people of the organization to work together for accomplishing common objectives. Thus, formal organization is more or less an arbitrary structure to which the individual must adjust. It tells him to do certain things in a specified manner, to obey orders from designated individuals and to cooperate with others. Coordination also proceeds to a prescribed pattern in the formal organization structure.
 
The formal organization is built around four key pillars; namely,
 
1. Division of Labour,
 
2. Scalar and Functional Processes,
 
3. Structure, and
 
4. Span of Control.
 
 
These may also be called principles of formal organization. Division of labour and specialization is the basic principle of formal organization. The whole work is divided into a number of small operations and each operation is performed by a different person so that there is maximum specialization. The scalar and functional processes imply the growth of the organization both vertically and horizontally. The structure of the organization refers to the overall arrangement in the organization which ensures proper balance between difference parts of the organization and secures the execution of all operations and the achievement of organizational objectives. The span of control refers to the number of subordinates directly reporting and accountable to one superior.
 
Formal organization is the official hierarchy as it appears on paper. It is the basis and official version of the organization. Formal organization possesses the following characteristics:

1. It is deliberately impersonal;
 
2. It is based on ideal relationships; and
 
3. It is based on the rabble hypothesis of the nature of man.
 
 
These characteristics have also been criticized by many authors. Firstly, as formal organization is deliberately impersonal, emotions and sentiments of individuals are ignored in determining the interactions, communication and accountability. But human beings cannot live without social relations and, that is why, they develop informal relations. Secondly, it is based on ideal relationships, human being are thought to be rational and economic beings. Further, it is assumed that there would be no unofficial channel of communication. But it is very difficult to find such ideal relationships in actual life. Lastly, it is based on the rabble hypothesis of the nature of man. It is assumed that there will always be the same kind of reaction if human beings are punished or rewarded. But the individuals are not always motivated by the same rewards or punishments in the same manner.
 
Formal organization is deliberately construed to achieve some goals. It sticks to the goals (as laid down by the originators). Goals are not easily changeable with the passage of time. This is another point of criticism put forward by its critics. The rules and regulations of the organization may be too rigid that it becomes difficult to achieve the goals. Moreover, formal organization does not consider the goals of the individuals. Because of these reasons formal organization usually gives birth to informal groups which cannot be separated from it. As a matter of fact, there is a close relationship between the formal and informal organizations. Management should not ignore informal organization (informal group, informal leader, informal communications, etc.,) but it should use it to achieve the organizational goals.

 

Tags : Management Concepts & Organisational Behaviour - Formal And Informal Organization
Last 30 days 144 views

OTHER SUGEST TOPIC