Formal organizations – refer to organizations

formed by the company owner or manager to

help the firm accomplish its goals; made up of
formal groups. It is characterized by
hierarchical and reporting relationships
among groups or members.
Informal organizations – refer to
organizations that exist because of friendship
or common interest.
Function of formal organization
1. Accomplish goals that require cooperation or collaboration among
formal groups in the organization;
2. Produce or bring about new and creative ideas and solutions to
company problems;
3. Coordinate interdepartmental activities;
4. Implement company rules/regulations and policies; and
5. Orient/train new employees.
Function of Informal Organization
1. the members’ need for affiliation;
2. Give the individual members a chance to develop their self-esteem;
3. Give individual members an opportunity to share their ideas;
4. Lessen individual members’ insecurities; and
5. Provide a mechanism to solve members’ personal and interpersonal
problems.
Task 1. Identification. Identify if the following Organizational
Structure Design is Traditional
(T) or Modern (M).
_______ a. Design that groups together similar or related
specialties
_______b. It is made up of work teams.
_______c. Design where employees continuously work on a project
_______ d. Focus on performanceimprovementof people
_______ e. Focus on flexibility and problem solving
_______f. Design made up of separate units where parent
corporation acts as overseer
_______ g. Boundaryless
_______ h. Bignumber of subordinates reporting to a centralized
authority figure
_______ i. Matrix Design
_______ j. Design with few departments, wide spans of control
II. Give at least 4 examples of formal and informal organization

III. List as many as you can:

Slogan of a company
Ex. SM- “We’ve got it all”
Fujidenzo-”Quality above all”