Formal Organisation – Objectives
“Formal organisation, no doubt is an important part of the organisation but it alone is not capable of accomplishing the organisational objectives”. Critically evaluate the statement.
Introduction: Define Formal and Informal Organization with their features.
Body: Elaborate on the role of Formal Organization in Public Administration by explaining its Characteristics also discuss why formal organization alone cannot become a way to accomplish Institutional Goals.
Conclusion: By specifying need of both Formal and Informal Organisation to achieve the goals
The formal organisation refers to the structure of jobs and positions with clearly defined functions and relationships as prescribed by the top management. This type of organization is built by the management to realise objectives of an enterprise and is bound by rules, systems and procedures. Everybody is assigned a certain responsibility for the performance of the given task and given the required amount of authority for carrying it out.
Informal organisation, which does not appear on the organisation chart, supplements the formal organisation in achieving organisational goals effectively and efficiently. The working of informal groups and leaders is not as simple as it may appear to be. Therefore, it is obligatory for every manager to study thoroughly the working pattern of informal relationships in the organisation and to use them for achieving organisational objectives.
Characteristics of Formal Organisation:
- Formal organisation structure is laid down by the top management to achieve organisational goals.
- Formal organisation prescribes the relationships amongst the people working in the organisation.
- The organisation structures is consciously designed to enable the people of the organisation to work together for accomplishing the common objectives of the enterprise
- Organisation structure concentrates on the jobs to be performed and not the individuals who are to perform jobs.
- In a formal organisation, individuals are fitted into jobs and positions and work as per the managerial decisions. Thus, the formal relations in the organisation arise from the pattern of responsibilities that are created by the management.
- A formal organisation is bound by rules, regulations and procedures.
- In a formal organisation, the position, authority, responsibility and accountability of each level are clearly defined.
- Organisation structure is based on division of labour and specialisation to achieve efficiency in operations.
- A formal organisation is deliberately impersonal. The organisation does not take into consideration the sentiments of organisational members.
- The authority and responsibility relationships created by the organisation structure are to be honoured by everyone.
- In a formal organisation, coordination proceeds according to the prescribed pattern.
With the above characteristics Formal organisations have the advantages of concentrating on the jobs to be performed, therefore, making everybody responsible for a given task and a formal organisation is bound by rules, regulations and procedures. It thus ensures law and order in the organisation.
But Formal organisation, no doubt is an important part of the organisation but it alone is not capable of accomplishing the organisational objectives. Informal organisation supplements the formal organisation in achieving the organisational objectives. If handled properly, informal organisation will help in performing the activities of the organisation very efficiently and effectively because of the following benefits of informal organization:
- It blends with the formal organisation to make it more effective.
- Many things which cannot be achieved through formal organisation can be achieved through informal organisation.
- The presence of informal organisation in an enterprise makes the managers plan and act more carefully.
- Informal organisation acts as a means by which the workers achieve a sense of security and belonging. It provides social satisfaction to group members.
- An informal organisation has a powerful influence on productivity and job satisfaction.
- The informal leader lightens the burden of the formal manager and tries to fill in the gaps in the manager's ability.
- Informal organisation helps the group members to attain specific personal objectives.
- Informal organisation is the best means of employee communication. It is very fast.
- Informal organisation gives psychological satisfaction to the members. It acts as a safety valve for the emotional problems and frustrations of the workers of the organisation because they get a platform to express their feelings.
- It serves as an agency for social control of human behaviour.
As both formal and informal organisations are quite essential for the success of any organisation, a manager should not ignore the informal organisation. He should study thoroughly the working pattern of informal relationship in the organisation and use the informal organisation for achieving the organisational objectives.