FREE online courses on Group Dynamics - Significance of Formal Organization
Formal organization is the basis of effective management of
any enterprise. It can help is achieving the following benefits:
1.
Formal organization helps in determining the objectives of
various departments and units.
2.
It facilitates the attainment of organizational goals through
the fulfillment of objectives of various departments.
3.
It facilitates optimum use of resources and new technological
developments.
4.
It clarifies authority and responsibility relationships, which
lead to better communication.
5.
Formal organization creates a proper balance of activities of
different departments.
6.
Formal organization brings about stability in the enterprise
through procedures, policies, rules and regulations. The working of different
departments continues despite the leaving of old employees and joining of new
hands.
