What does formal organization mean?
A formal organization is one that is structured and collaborates to accomplish a shared objective. It often adheres to a strategy for organizing and outlining the roles, responsibilities, and policies of an organization. The official duties, which in turn define the formal positions, roles, and responsibilities organized into a formal hierarchy, are defined by expectations. This structure is governed by a system of rules, regulations, and procedures.
“Systems of coordinated and controlled activities that arise when work is embedded in complex networks of technical relations and boundary-spanning exchanges” is how Meyer and Rowan (1977) define it.
Important traits of a formal organization:
A formal organization has the following essential traits:
- They have a plan and are organized.
- The division of labor and efficiency are the cornerstones of operations.
- prioritizes work effectiveness over relationships and personality.
- It illustrates structure via organizational charts.
- Rules, procedures, processes, and coordination are predetermined.
Benefits of formal organization
- It outlines each person’s roles and responsibilities and focuses on job performance.
- It is subject to laws and rules, which guarantees adherence to them.
- Roles are clearly defined, which facilitates the alignment of personal aspirations with corporate objectives.
Formal organization’s drawbacks
- It might disregard human relationships, empathy, and unique personalities.
- may disregard personal ambitions and objectives in favor of the larger good.
- Change implementation is difficult due to strict laws and regulations.
