Formal and Informal Organisation.docx
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This document discusses and compares formal and informal organization. Formal organization refers to a predefined hierarchical structure with clear roles and responsibilities. It aims to achieve organizational goals through standardization but can lack flexibility. Informal organization emerges spontaneously through social interactions and serves social and communication needs, though it resists change and lacks specialization. Both organization types have advantages and disadvantages, and a balance is optimal for organizational effectiveness.
Formal and Informal Organisation.docx
- 1. Formal and Informal Organisation Formal Organisation: -“The formal organisation is a system of well-defined jobs, each bearing a definite measure a authority responsibility and accountability.” Feature of Formal Organisation: - It lays down the rules and procedures essentials for achieving the objectives of the organisation. It facilitates coordination and integration of the efforts of various departments. It gives lot of emphasis on work to be performed rather than the interpersonal relationships among the employees. It clarifies the authority, responsibility and superior_ subordinate relationships in an organisation. Such a structure is intentionally designed by the top management to facilitate the smooth functioning of the organisation. Advantage of Formal Organisation: - Specific Duties: - In formal organisations structure, role of each and every member is clearly defined which helps in avoiding confusion and duplication of work and efforts. Unity of Command: - This organisation clearly specifically designed by the management; hence such chain of command is established that helps in maintaining unity of command. Responsibilities are fixed: - This organisation clearly specifies the authority and responsibility of every job holder. Systematic coordination and pre-defined relationships among employees help to fix the responsibility in case of deviations. Specific Duities Unity of Command Responsibilities are fixed Fulfills Organisational Objectives Stability
- 2. Fulfils Organisational Objectives: - It helps in achieving the objectives of the organisations by providing a framework regarding operations to be performed and ensuring that each employee known clearly about his job. Stability: - It also ensures stability in the organisations. Disadvantages of Formal Organisation Delay in Work: - The existence of chain of command in the organisation may result in delay decisions. Back of Initiative: - It may not provide adequate recognition to creative talent since it does not allow any deviations from rigidly laid down policies. Emphasis on Work Only: - Since it lays more emphasis on organisational goals alone and therefore at times it becomes very difficult to understand human aspects of relationships in the organisations. Informal Organisation: -“Aninformal organisationisanaggregate of interpersonal relationships withoutany consciouspurpose butwhichmaycontribute tojointresults.” Feature of Informal Organisation: - An informal organisation emerges within a formal organisation because of the social interaction among its people. The group norms lay down the standards of behaviour. It is not intentionally created by the management but arises spontaneously. The members develop independent channels of communication without any fixed direction of flow of information. Delay in Work Back of Initiative Emphasison Work Only
- 3. It is a network of social relationships and therefore does not have any fixed structure. Advantage of Formal Organisation: - Fulfils Social Needs: - It meets social needs of the members and hence results in a sense of belongingness among them. Influence on Productivity: - It has a powerful positivity influence on the productivity and job satisfaction. Fast Communication: - It serves as a faster channel of Communication. Fulfils Organisational Objectives: - It helps in achieving organisational objectives by compensating the limitation of the formal structure. Disadvantages of Formal Organisation Fullfills Social Needs Influence on Productivity Fast Communication Fulfills Organisational Objectives Resistanceto change Creates Rumours Lack of Specilisation
- 4. Resistance to change: - It is very difficult for management to bring changes in the organisation if the informal organisation opposes them. Such resistance may restrict growth of the organisation. Create Rumours: - Some times informal organisation becomes a disturbing force, which can go against organisational interests e.g., spreading rumours in the organisation. Lack of Specialisation: - It is a based on the mutual relationships rather than on division of work as anybody can talk to any person in any department with regard to any topic. Hence, specialisation is not possible.