Features of Formal Organization

Formal organization has the following features:

1.    Deliberately created structure :

It is deliberately created organization structure that defines official relationships amongst people working at different job position.

2.    Job-oriented:

It focuses more on jobs than people. It allocates jobs to people and defines the structure of relationships amongst them for achieving the formal organizational objectives.

3.    Division of work :

Work load is divided into smaller units and assigned to individuals on the basis of their skills and abilities. Decision of work amongst people results in specialization and increases organizational output.

4.    Departmentation:

Departmentation is the basis or foundation of organization structure that is, organization structure depends upon departmentation. Departmentation refers to division of work into smaller units and their re-grouping into bigger units (apartments) on the basis of similarity of activities. The functional departmentation divides organization structure into production, finance, personnel and marketing departments.Departmentation helps in fixing responsibly of various department heads.

5.    Formal authority :

People at various positions exercise authority by virtue of their position in the organizational hierarchy. Authority is linked to position within the organization, and, though it, in the person occupying the positing. It involves the right to command, to perform, to make decisions and to spend resources.

6.    Delegation:

Work is officially delegated from top levels to lower levels. The work load is divided into various units, a part is assigned to subordinates and authority is given to them to carry out the assigned task. This concept of division of work and tits assignment to people down the scalar chain is called delegation. “Delegation is the process by which a manager assigns tasks and authority to subordinates who accept responsibility for those jobs. “

“Delegation is a process the manager uses in distributing work to the subordinates”

7.    Coordination:

Managers coordinate or integrate the activities of individual and units into a concerted effort so that departments and individuals work towards common goals. It is necessary for manages to coordinate the activates of organization by communicating organizational goals to each department, setting departmental goals and liking the performance of each department with others so that a all the departments collectively contribute towards the organizational goals.Coordination is “ the process of linking the activities of the various departments of the organization.”

8.    Based on principles of organizing :

Formal organization is based on formal principles of organizing.

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