Scribd
Upload
9 views3 pages

formal and informal organization

Uploaded by

sabarisriram.v.cse2021
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
9 views3 pages

formal and informal organization

Uploaded by

sabarisriram.v.cse2021
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 3

Discuss the objectives and features of formal and informal organization

with merits and demerits.

1. Formal Organization
A formal organization is a structured, official setup within a company or
institution, where roles, rules, and processes are clearly defined and
documented. It is created intentionally to achieve the organization’s goals
efficiently.

Objectives:

● Achieve organizational goals through a structured setup.


● Ensure clear communication and coordination across all levels.
● Define roles, responsibilities, and authority lines for efficient task
allocation.
● Implement rules and procedures to maintain order and accountability.

Features:

● Hierarchy: There is a clear organizational structure, with authority,


reporting lines, and defined roles.
● Rules and Regulations: These are documented and strictly followed
to standardize operations.
● Goals and Objectives: Clearly outlined objectives that guide
employees towards organizational goals.
● Division of Work: Tasks are divided based on expertise, creating
specialization and increasing productivity.
● Coordination and Control: Mechanisms are in place to coordinate
activities and monitor performance.

Merits:

● Clear Responsibilities: Employees understand their duties, reducing


confusion and overlap.
● Efficiency and Discipline: Standardized procedures and guidelines
create a disciplined work environment.
● Accountability: Clear authority lines improve accountability for
actions and decisions.
● Consistency: Policies ensure consistency in decision-making,
promoting fairness.

Demerits:

● Rigidity: Strict rules can lead to inflexibility, making it hard to adapt to


change.
● Slow Decision-Making: Multiple layers of approval can delay
decision-making.
● Lack of Innovation: Overemphasis on rules may destroy creativity.
● Employee Dissatisfaction: Rigid structures may leave employees
feeling restricted, reducing job satisfaction.

2. Informal Organization
An informal organization, on the other hand, is an unofficial network of
relationships and interactions that naturally develop among people within a
formal organization. It is based on social connections, friendships, and
shared interests rather than on official job roles or structure.

Objectives:

● Foster social relationships among employees.


● Enhance communication and collaboration outside formal channels.
● Create a supportive environment, reducing workplace stress.
● Serve as a mechanism for sharing ideas and building morale.

Features:

● Unstructured: No formal hierarchy; relationships are formed


organically based on personal preferences.
● Flexibility: Lacks strict rules, allowing for adaptability and free
communication.
● Mutual Aid: People support each other through informal channels,
often leading to stronger team bonds.
● Spontaneous Communication: Communication flows freely, often
outside the official chain of command.
● Social Norms and Cohesion: Employees often share unwritten
norms, creating a sense of belonging.

Merits:

● Boosts Morale: Social interactions improve job satisfaction and team


cohesion.
● Quick Communication: Information spreads quickly, aiding
responsiveness and reducing delays.
● Innovation and Creativity: An informal environment encourages
creative thinking and idea-sharing.
● Flexibility and Adaptability: Can adapt to changes faster than
formal structures.

Demerits:

● Lack of Accountability: Lack of defined roles may lead to


misunderstandings and blame-shifting.
● Potential for Conflict: Personal disagreements can disrupt
workplace harmony.
● Rumors and Gossip: Informal communication can lead to rumors,
affecting morale and trust.

Distinguish between formal and informal organization. Classify the different


types of organization charts.

Book pg 3.8

You might also like