What is meant by formal organisation? Explain any five features of formal organisation.

Meaning: It refers to the organisation structure which is designed by the management to accomplish a particular task.

Features:

(i) It has Defined Inter-relationship: Formal organisation is a sort of arrangement which clearly defines mutual relationship. Everybody knows their authority and responsibilities. This clearly shows who will be reporting to whom.

(ii) It is Based on Rules and Procedures: It is important to observe all the pre-determined rules and procedures in the formal organisation. The objectives laid down under planning are thus achieved.

(iii) It is Deliberately Created: It is deliberately created in order to achieve the objectives of the organisation in an easy manner.

(iv) It is Impersonal: Under it, personal feelings are ignored and strict discipline is observed. It is not the person but the work that happens to be important.

(v) It is More Stable: Under this changes cannot be introduced because of the needs of individuals and their wishes. Therefore, it is more stable.