Formal organization is a preset number of written regulations of intra-organization measures and procedures and regulation. These rules must be flexible while leaving room for discretion in their interpretation. However, in some countries these rules are set to be followed to the letter. The importance of formal organization is to facilitate the achievement of an organization’s goals; facilitate in the co-ordination of the various activities conducted there-in and establish a logical and well-adhered authority. Formal organization has several major characteristics: Employs a top-down approach, static rather than dynamic, missionary, enduring and lasting unless altered, easily seen and understood, bound by a set number of codified rules and regulations and vital in dealing with well perceived and consistent situations.
Currently, three major forms of organization exist. First, there is the normative organization whereby a person works having in mind and towards achieving set organization goals. Secondly, there is utilitarianism whereby rather than working out of self-motivation and the need to achieve certain objectives, the individual works so as to make a living or to earn a salary. Finally, there is coercive organization whereby on has involuntary membership.
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