What is meant by ‘Formal Organisation’? State any five advantages of this form of organisation.
Meaning: It refers to the organisation structure which is designed by the management to accomplish a particular task. Advantages of Formal Organisation:
(i) Easy to Fix Accountability: Since the authority and responsibility of all the employees have been already fixed, inefficient employees can easily be apprehended and in this way their accountability can be fixed.
(ii) No Overlapping of Works: In the formal organisation, everything moves in an orderly manner. Therefore, there is no possibility of any work being left out or unnecessarily duplicated.
(iii) Unity of Command Possible: It is possible to observe the principles of unity of command in view of the presence of scalar chain of authority.
(iv) Easy to Get Goals: Under the formal organisation, it is easy to achieve the goals of the organisation because there is an optimum use of all the material and human resources.
(v) Stability in Organisation: All the people work by observing rules and remain confined within the domain of their authority. This leads to the establishment of good relationship which in turn leads to stability to the organisation.
