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POM Unit3 L2

Formal organization refers to the clearly defined jobs, functions, and relationships within a workplace structure as prescribed by management. It aims to eliminate conflicts, avoid overlapping responsibilities, and ensure more stability through classifying tasks. Informal organization, in contrast, arises naturally from the personal and social relationships between employees based on non-work factors like friendship and common interests. While informal groups can boost motivation and fill gaps, they can also spread rumors and reduce productivity if they conflict with the goals of the formal organization.

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8 views

POM Unit3 L2

Formal organization refers to the clearly defined jobs, functions, and relationships within a workplace structure as prescribed by management. It aims to eliminate conflicts, avoid overlapping responsibilities, and ensure more stability through classifying tasks. Informal organization, in contrast, arises naturally from the personal and social relationships between employees based on non-work factors like friendship and common interests. While informal groups can boost motivation and fill gaps, they can also spread rumors and reduce productivity if they conflict with the goals of the formal organization.

Uploaded by

ankitsingh79834
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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ORGANIZATION

Organization is defined as the place where, process of arranging and structuring work
to accomplish a goal happens.

FORMAL ORGANIZATION:
The formal organization refers to the structure of jobs and positions with clearly defined
functions and relationships as prescribed by the top management.

FORMAL ORGANIZATION:
 It can also be defined as system of well defined jobs with a prescribed pattern of
communication, coordination and delegation of authority.
 According to Louis Allen, Formal organization is a system of well – defined jobs, each
bearing a definite measure of authority, responsibility and accountability.
In formal organization everybody is assigned a certain responsibility for the performance of
the given task and given the required amount of authority for carrying it out.

CHARACTERISTICS OF FORMAL ORGANIZATION:


1. Flexible and properly planned.
2. It is based on principle of division of labour and efficiency in operation.
3. Concentrates more on the performance of jobs but not on the individuals performing the
jobs.
4. Flow of organization structure is usually framed.
5. Coordination and control among members of organization are well specified.
6. Responsibility and accountability are clearly defined.
7. Unity of command is normally maintained.

ADVANTAGES OF FORMAL ORGANIZATION:


1. Conflicts among workers is eliminated.
2. Overlapping of responsibility is avoided.
3. More stability is ensured in organization.
4. A sense of security arises from classification of the task.
5.Motivates every employee for their personal as well as organization goal.

INFORMAL ORGANIZATION:
An informal organization is an organization which is not established by any formal authority,
but arises from the personal and social relations of the people.
Informal organization refers to the relationship between people in the organization based on
personal attitudes, emotions, prejudices, likes, dislikes etc.
It arises naturally on the basis of friendship or some common interest which may or may not
be related with work.
Generally large formal groups give rise to small informal or social groups. These groups may
be based on same taste, language, culture or some other factor.
E.g. People of common language forming group, association of people.

CHARACTERISTICS OF INFORMAL ORGANIZATION:


1. Arises voluntarily.
2. Created based on the similarity among the members (age, native, etc.)
3. Has no place in organization structure.
4. A person may become a member of several informal organizations at same time.
5. Rules and regulations are not written, but are followed.
ADVANTAGES OF INFORMAL ORGANIZATION:
1. As it gives satisfaction, motivates the workers and maintains the stability of the work.
2. Fills up the gap in an organization.
3. Effective channel of communication.
DISADVANTAGES OF INFORMAL ORGANIZATION:
1. May be a hurdle in achieving the objective of an organization.
2. Indirectly reduces effort of management to promote greater productivity.
3. Easily spreads rumor.

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