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
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