Limitations of Formal Organization

Though formal structure of relationships helps to achieve organizational goals, it suffers from the following limitation:

1.    Loss of initiative :

As too much emphasis is placed upon formal rules and regulations, workers cannot use their creative and innovative skills to perform organizational tasks. There is loss of initiative and innovative abilities of employees due to strict adherence to rules.

2.    Unsatisfied social needs :

Man is ‘social animal’. He cannot live alone. he needs to interact with people and share his fallings at-work with others. In a formally designed organization structure, employees’ social needs remain unsatisfied as they arrested to each other thorough a formal chain of command, They discuss only official matters with each other,. Social interactions are altogether ignored.

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