PUBLIC ADMINISTR

240 SAHITYA BHAWAN

ELEMENTS OF ORGANISATION
bureau
a grocery store, agovernment
the organisation
or anIn insurance company,
CO-ordination and authority
football team,
of a there are five elements objectives. specialisation, rierat
depart
who
organisation may be defined as a group of persons
1 Objecthves An agreed The performance of
accomplishment of objectives upon which they are supported by
the objectives are understood and its
wil be influenced by how wellthe
2 Specia lisa tion An organisation distributes work so that workers may specialise
provides for co-ordination.
The efforts
(Oer ber
3 Co-ordination An organisation
be effectively interrelated.
specialising in various tasks must clearly
about a hierarchy. There must be
4 Hierarchy. An
channels of command.
organisation is built
communication and control. Workers and
they take orders and to whom they report.
supevisors
must establishe
understand from whom
5. Authority: An organisationfixes authority, when men work together Someone mustha
direction, to resolve differences amongindividuals Working on related
authority to give
TYPES OF ORGANISATION

(1) Formal organisation and(2) Informal

tion.
There are two types of organisations :
organis,.
FORMAL ORGANISATION

of a classical mechanistic hierarchical sto

Aformal organisation, typicaly consists
accountability and the lines of command are
in which position, responsibility, authority,of well defined jobs with a prescribed pater
defined and established. It is a system consciously brought
communication, co-ordination and delegation of authority. It is
enable the people in the organisa.
existence for predetermined objectives and is designed to
objectives. "Organisation". Jnhr
to co-ordinate their efforts effectively in order to achieve those accomplishment of some
M. Gaus wrote, "is the arrangement of personnel for facilitating the
responsibilities. It is the relatina
agreed purpose through the allocation of function_ and
a common task in such a way
efforts and capacities of individuals and groups engaged upon
friction and the most satisfaction to those fo
as to secure the desired objective with the least
enterprise."
whom the task is done and those engaged in the
management for achieving
It refers to the organisational structure deliberately created by organisation chart or as
on the
the objectives of the enterprise. It is the organisation as shownappears to the observers from
described by manuals and rules. It is an organisation as it
outside. t is also called 'mechanical organisation'or engineering organisation'.
According to Chester Barnard, "Formal organisation is a system of consciousy o
essence of formal
ordinated activities of two or more persons toward a common objective. The
comes into existence
organisation is conscious common purpose and formal organisation
willing to act; and (c) share
when persons (a) are able to communicate with each other; (b) are
system of well defined jots.
a purpose."° In the words of Allen, "The formal organisation is a o
accountability." It consists
each bearing a definite measure of authority, responsibility and
those relationships that are relatively stable and char ye only slowly.
 ORGANISATION :
Thus fomal
FORMAL AND INFORMAL
performance Formalmaking. allocation of
ORGANIof SanATIONS
levels for decisionorganisation enables designing 241
duties and organisation, identification
organised enterprise organisation means the responsibilities
intentional
of
and ensuring various
smooth
Characteristics of
Formal structure of roles in a formaly
Some of the important Organisation
1. Formal Structure It
defnite measure of authority.
characteristicformal
refers to the s of
formal
organisations are
2 Legal Status It is responsibility and structure of well
defined jobs, each bearing a
a:the
government backed
level requires the
by legal accountability.
sanctions. The
enabies the organisation to come into enactment parliament
existence
by establishment
or
of any organisation
legislature. The law which
3. Division of Work: Division of work is the also confers authority.
organisation to
Specialise key feature of
he in certain
tasks or activities formal
Iorganisation.
and realise the goals This enables
4. Permanence Formal
adopt to environmental organisations
conditions and
are relatively
permanent
change the structure and even
effectiveBy.
than oth ers. Though they
generally created to last along time.
- Rased on Rules
and Hegulations : Formal
objectives, they are
wel formulated rules and regulations. The organisations function in accordance with
W2r their likes and dislikes but shouldemployees working in formal organisations can not
work within the framework
reguiations. of stipulated rules and
e Centralisation :
DeciSIon making is centralised at the top. It is assumed that
at the top knows everything. the boss
- Downward Communication:
Communication is mostly downward between the superior
and his subordinates in the form f commands.
in brief. the usual way of depicting a formal organisation is by means of an
organisation
ehart. It is a snapshot of an organisation at a particular point in time which shows the flow of
authority, responsibility and communication among various departments which are located at
diferent levels of the hierarchy.
Merits of Formal Organisation
Some of the benefits of formal organisational structure are :
1. Individuals will be selected on the basis of ability to perform expected tasks.
2. The activities of the individuals and the groups will become more rational, stable and
predictable.
in a meaningful sequence will result.
3. An orderly hierarchy in which people are relatedauthority
ovidual responsibilities will be known cleariy and the to act would be defined.
treatment of the individual workers more
oucn an organisation may make the
are reduced.
dernocratic, because patronage and favouritism procedures will be determined clearly and
5. Directional and operational goals and
energies devoted to their achieverment.
Demerits of Formal Organisation from certain drawbacks, such as :
adjust
aformal organisation is not free authority seemn inflexible and difficult to
Howeveroften
,
1. Very and lines of
fixed
rmeet chhanging needs.relationships
 D43 NATWTYA BIAWAN
PUBLIC ADMINISTRATY,
2Inter porsonal communication may be slowed or stopped as aresult of strict

formalyadhaer ra
to fomal lines of communication

3 Employees may become less willing to assume duties that are not
their original assignment
4 Individual creativity and originality may be stifled by the rather rigid
duties and responsibilities
INFORMAL ORGANISATION
determination -,

The informal organisation, on the other hand, comes into existence due
interactions and interpersonal relationships and exist outside the formal
without any set rigid rules. Though unrecognised, it exists in the shadow ofauthority
formal syster
as a network of personal and social relations, which must be understood and
management The nature of intormal organisation was first systermatically respected
explored oy the strucurs
pioneering studies carried on by Elton Mayoand others at the Hawthorne plant of the h
Electnc Company. It exists in government offices as well as in business.
Chester Barnard describes informal organisations as the aggregate of personal cont
and interactions and the associated groupings of people. Such organisations are indef
structureless and are a shapeless mass of varied densities. They are based not upon off
authority. but upon personal and group ties.
The informal work groups are based upon socio-psychological support and reasoning ara
depend upon members' interaction, communication, personal likings and dislikings and sonial
contacts within as well as outside the ogranisation. How powerful this organisation is can be
seen from the fact that if one member is fired, sometimes all workers go on strike in suopn
of that 'member' of the informal organisation. The bonds are much stronger and it brings in a
sense of belonging and togetherness. This togetherness can have a powerful influence on
productivity and job satisfaction, since employees motivate each other and bear each-other's
burden, by training those who are new and by looking up to old timers for guidance, advica
and assistance.
Informal groups result due to personal bonds and social interaction among people who
work together at the same place and may have similarities as well as differences in their natue
and their outiook. These groups have their own structure, sometimes parallel to the forma
structure, with its own leaders and followers, group goals, social roles and working patems
It has its own unwritten rules and a code of conduct which every member implicitly accepts.
For example, a person working in a group for a long time and having a good rapport with other
members, may emerge as a leader due to his technical expertise and his seiority. For any
problem within the group, either technical or social, the members wil approach this leader
rather than the formally assigned supervisor.
Advantages of Informal Organisation
Informal organisation arises and persists because it yields certain advantages. These are
as follows :

1. It gives to each member of the organisation that human consideration which boosts i
self image and personality. With his small informal group, the member is somebody, thougn
the formal structure he is only one of 700 workers.
 ORGANISATION
FORMAL AND
INFORMAL,
o News travel quickly via informal
receiver of information
before it is officialy
ORGANI SATI ONS
organisation is the
It
243
9
lnformal is a check on released clandestine transrnitter and
himto plan and organisation
act more unlimited use of
It aives the carefully. manager's authority and orces
6 Informal manager feedback about employees and their work
organisation to organisation provides support to the formal
make a workable experiences
A Informal system for getting the structure It blends with the formal
work done.
them to learn theorganisation
is a forum for
work practices and rules socialisation of new
employees and for helping
According ato Chester Bamard,
organisation, feeling of "Informal
of status, organisation brings
belonging,
Barnard considers the following as the of self respect and ofcohesiveness to a forrnal
tion, maintenance of gregariousviz.,
functions of informal organisation, satisfaction
f the objective cohesiveness
authonty; and through regulating the willingness to learn andcommunica
independent choice 6 maintenance of the feeling of the ability
personal integrity, self respect and
Disadvantages of lnformal Organisation
Informal organisation may create
in the following ways: difficulties in the smooth management of an
1. Conficting Nornms :
enterprise
Informal organisation upholds the
memberS which often run counter to the goals and values ofindividual social goals of its
and
result the efficiency of operations is reduced and the formal organisation. As a
2. Rumour : One talents of employees are suppressed.
undesirable characteristic of informal communication, called the
'arapevine'; which often carries rumours or false information which is detrimental to
functioning of the organisation. smooth
3. Power Politics: Informal
organisation is often riddled with factionalism and power
politics. Members divert their energy and time from jobs to indulge in faction fighting and petty
politics. The informal leader may manipulate the group towards selfish or undesirable
ends.
4. Resistance to Change: Informal groups tend to perpetuate the status quo.
those management demands which are perceived by it as detracting from its culture or
They resist
threatening the existing relationships among the members.
DISTINCTION BETWEEN FORMAL AND INFORMAL ORGANISATIONS
L.D. White obser Distinction between Formal and Informal Organisations
ves :"The informal or Formal Organisation Informal Organisation
ganisation more Created deliberately Arise spontaneously
Subtle, reflecting such 2 Planned and official Unplanned and unofficial
3. Large Small
matters as social and Dynamic
4. Stable
economic status, race 5. Definite structure, mechanical Structureless, impersonal and emo
and rational tional
or language differen Satistaction of members
ces, educational levels 6 Service to society
7. Legitimate authority Power
and personal likes and Official and well defined paths Unspecified channels
8
dislikes. It is customary Fast flow of information like
9 Slow flow of information
Grapevine.
and enacted; it is not Not shown on organisational chart.
Witten and it is not 10. Shown on organisational chart
 244 SAHITYA BHAWAN
PUBLIC ADMINIWTRATION
subject to neat diagrams. The formal
intormal. emotional and personal. The
organisation tends to be rational and imipersona the
two
apart"7 usually overiap, may nearly coincide or may be far
According to Barnard an informal organisation to be effective rmust always
establish formal
organisations within it. In tun, formal organisations create intorrmal organisations
of communication and to protect the as a nmeans,
In Barnard's words, "They are
individuals from the domination of the forrnal organisation
interdependent aspects of the same phenomenorn a society
is structured by formal organisations,
informal organisations." formal organisations are vitalised and condtioned by
Conclusion
Both formal and informal relations are
fact, informal organisation is a valuable indispensable component of any organisation. In
of the vital gaps in the latter. Therefore, component of the formal organisation and tils in some
tion hostile to formal organisation. Evenadministration should not consider informal organisa
ganisations for keeping harmonious relations administration should encourage the informal or
in the organisation and for achieving the
organisational objectives.