Formal Organization

Formal Organization is an intentional structure established by an individual or a group of people under the legal provisions and includes roles and responsibilities in a fully organized enterprise. A manager can well organize the activities, if the structure and environment of an organization is formally furnished. Formal organization must be flexible and there should always be some room for discretion, for the advantageous utilization of creative talents and for recognition of individual likes and capacities. But still individual effort in a group situation must be channeled towards group and organization goals.

Characteristics of Formal Organization

·         Well defined rules and regulation

·         Determined objectives and policies

·         Status symbol

·         Limitation on the activities of the individual

·         Strict observance of the principle of co-ordination

·         Messages are communicated through scalar chain

·         Best to attain the objectives of the enterprise.