- Limited Flexibility: As this type of organization is very specific in every activates there is very little margin of flexibility and spontaneous decision making in the company. Such practice in the company can be demotivating to the employees.
- Slowness of processing: In a formal organization for performing a task needs many formal procedures to accompany. Such formalities often slow down the implementations of decision making.
- Communication Barrier: As in a formal organization a task needs the co-ordination of different departments so communication needs to clear in this process. Any kind of miscommunication may lead to ultimate inefficiency.
