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What Are Advantages And Disadvantages Of Formal Organization In Management?

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1. Formal organization refers to the organization structure which is designed and prescribed by the management of an enterprise. It is generally, but not necessarily, represented in the form of an organization chart showing designation of various people employed in the organization, their hierarchical levels, reporting relationships, and other channels for control and coordination. This chart is backed up by a more detailed description of duties and responsibilities of each position shown in the organization chart. This formal organization represent the structure of duties, responsibilities and working relationships formally prescribed in the organization.
People in an organization generally work in accordance with the structure prescribed by formal organization. But at the same time people in the organization develop additional relationships in the organization, which may be rooted primarily on personal rather than work consideration, but are impact significantly the functioning of the organization. Perhaps the most important impact of such informal organization is felt in the area of information exchange in dissemination in the organization.

O They provide the basic structure of division of work and responsibilities. Without such a structure it will e very difficult for employees to agree between themselves on duties and responsibilities of each, and such difficulties multiply in geometric proportions with increasing size of the organization.
O It generates clarity on what support and input each employee can expect from others, and in turn what is expected of him by others.
O It promotes discipline in the organization.
O It makes it easier to review and revise organization with changing requirements.
O It provides a structure for laying down pay scales and taking other decisions linked to organizational levels.
O It helps in other human resources development activities such as recruitment, promotions, career planning and development and manpower planning.

An outline should represent a writer's best effort to
explore a subject, to break it into its parts, to arrange ideas,
and to test out possible strategies of organization for the purpose
of clarity. Sometimes your instructor will tell you which form of
outline to use. When you have no specific instructions, select the
form that best suits the kind of paper you are writing. In
planning a long paper, especially one involving research, you will
probably want to make a topic or sentence outline.

Topic Outlines

The topic outline, the most frequently used kind of formal
outline, helps to organize longer papers. It consists of brief
phrases or single words (not sentences) that are numbered or
lettered to show the order and relative importance of the ideas.
While topic outlines often seem precise and formal, they
should be treated as part of the writing process. Developing such
an outline can help you arrive at a satisfying plan for arranging
your ideas. To prepare a topic outline, get all your ideas on
paper. Let us say you have brainstormed the subject "The Army as
a Career for College Men and Women" and produced this rough,
unsorted list of ideas:

Security
Promotion slow but steady
Many different branches appeal to different interests
Low pay
Commissioned ranks open to men and women graduates
Can't be fired
Cost of uniforms
Discipline often annoying
Frequent moves hard on soldier's family
See interesting places and people
Social life restricted to small circle
Good retirement benefits
Annual vacation with pay
Military job training useful in civilian careers

Looking at your list, you discover that some points stress the
advantages of an army career, others the disadvantages. The next
step is to divide the notes into two columns:

Advantages
Security
Promotion slow but steady
Many different branches appeal to different interests
Can't be fired
See interesting places and people
Good retirement benefits
Annual vacation with pay
Commissioned ranks open to men and women graduates

Disadvantages
Low pay
Cost of uniforms
Discipline often annoying
Frequent moves hard on soldier's family
Social life restricted to small circle

In this form the relationship between the various ideas is not
shown (What is the relationship between "Promotion slow but steady"
and "Many different branches appeal to different interests"?) and
there is no clear balance between the two columns (is "Security"
supposed to balance "Low pay"?). In analyzing the columns,
however, you can see that there are two main ideas in each--the
financial aspect of an army career and the living conditions that
go with army life. You might then balance the notes in this way:

I. Financial aspect

A. Disadvantages
1. Low pay
2. Cost of uniforms
B. Advantages
1. Security
2. Promotion slow but steady
3. Commissioned ranks open to men and women graduates
4. Can't be fired
5. Good retirement benefits
6. Annual vacation with pay
7. Military job training useful in civilian careers

II. Social aspect

A. Disadvantages
1. Discipline often annoying
2. Frequent moves hard on soldier's family
3. Social life restricted to small circle
B. Advantages
1. Many different branches appeal to different interests
2. See interesting places and people

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