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Write a Short Note On: Formal Organisation. - Commerce

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Question

Write a short note on: Formal organisation.

Answer in Brief

Solution

Formal Organisation: When the managers are carrying on the organizing process then as a result of the organizing process an organisational structure is created to achieve systematic working and efficient utilization of resources. This type of structure is known as a formal organisational structure. The salient features of the formal organization are as follows :

  • Organizational structure is laid down by the top management to achieve organizational goals.
  • Organizational structure is based on the division of labor and specialization to achieve efficiency in the operations.
  • Organization structure concentrates on the jobs to be performed and not the individuals who are to perform jobs.
  • The organization does not take into consideration the sentiments of organizational members.
  • The authority and responsibility relationships created by the organization structure are to be honored by everyone.
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2014-2015 (March) Set 1

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