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Formal Organization

Formal organization is a well-defined structure of authority and responsibility that defines delegation of authority and relations helps amongst various organizational members. It works along pre-defined sets of policies, plans, procedures, schedules and programs Most of the decisions in a formal organization are based on pre-determined policies.

Louis A. Allen defines formal organizational s “a system of well defined jobs, each bearing a definite measure of authority, responsibility and accountability, the whole
Consciously designed to enable the people of ht enterprise to work most effectively together in accomplishing their objectives.”

Formal organization is a deliberately designed structure with formal authority, responsibility, rules, regulations and channels of communication.

Some degree of formalization is necessary for organizations to function effectively; to avoid taking time-consuming decisions to handle conflicting situations and exercise control over the activities of subordinates.

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