Formal Organization

Formal organization is a fixed set of rules of intra-organization procedures and structures. As such, it is
usually set out in writing, with a language of rules that ostensibly leave little discretion for interpretation. In
some societies and in some organization, such rules may be strictly followed; in others, they may be little
more than an empty formalism. The formal organization is a system of well defined jobs each wearing a
definite measure of authority, responsibility and accountability the whole consciously designed to enable
the people of the enterprise to work most effectively together in accomplishing their objectives. The formal
organization is more or less arbitrary structure to which the individual must adjust.

The formal organization facilitates the determined objectives and policies. They are relatively fix and
predictable form of organization is necessary if the company is to forecast its probable future
accomplishment. Definite limit for the activites of the people are set by the formal organization define the
responsibility and authorities provide the relatively thick fences within which people can develop their own
work areas to the maximum without encouraging on the work of others.

Characteristics of formal organization

 Well defined rules and regulation

 Arbitrary structure
 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