Advantages Of Formal Organizations

Organizations are basically classified and divided on the basis of realtionships. There are two kinds of organizations formed on the basis of relationships in an organization. The organizational chart of a business provides a formal that is agreed and written down .To another side of the structure of any business is the informal which is less likely to be written down on the organizational chart. The informal structure is more about the relationship between the individuals. It is about a chemistry that exist between the people and that always affects both relationship and results.

Formal organizations are one which refers to a structure of well-defined jobs each bearing a measure of authority and responsibility. It is a conscious determination

the formal structure is adhered to more officially in a large company, but even small businesses typically have a formal structure in place. Smaller organizations have fewer resources so they are not as concerned with hierarchy as they are with just getting the job done. Most people in a small organization are used to doing many tasks, so this informal structure feels natural.

Aadvantages of Formal Organizations:

The following are some of the most important advantages of a formal organization:

1. Promotes Growth:

The one of the biggest primary advantage of formal structures is that they promote growth, in accordance with the organization’s objectives and goals. A formal structure is intentionally created by the management to fully utilize the resources. As formal structures are carefully managed and maintained by the management, they ensure maximum possible profits for the organization. In addition, it is the formal structure that is instrumental in achieving a sustainable growth and success.

2. Formal Communication:

Formal structures in organizations play another important role. These structures are responsible for flowing methodical communication within an organization. Whenever the management wants to communicate something important with its employees or vice versa – formal organizations come into play. A memo can be understood as a good example of it.

3.

However, in large companies and organizations, overlapping of work is considered as a very significant problem and challenges. Overlapping refers to the point where job responsibilities of two different workers collide with each other. Formal structures make sure that never happens. A well-organized and carefully built formal organization avoids the overlapping of work by systematically dividing responsibilities, jobs, groups and departments to relevant employees .Also ,It’s a big advantage of the formal organization that duplication or overlapping of work can be avoided. This means lower cost of operations, better results and higher