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FREE online courses on Group Dynamics - Formal Organization


Chester I. Barnard defined formal organization as “a system of consciously coordinated activities or forces of two or more persons”. A formal organization is deliberately designed to achieve some particular objectives.


It refers to the structure of well-defined jobs, each bearing a definite measure of authority responsibility and accountability. The formal organization is built around four key pillars, namely:


(i)                 division of labor,

(ii)               scalar and functional processes,

(iii)              structure and

(iv)             span of control.


These may also be called the principles of formal organization. Division of labor and specialization is the basic principle of formal organization. The whole work is divided into a number of small operations and each operation is performed by a different person so that there is maximum specialization. The scalar and functional processes imply the growth of the organization both vertically and in the organization, which ensures proper balance between different parts of the organization and secures the execution of all operations and the achievement of organizational objectives. The span of control refers to the number of subordinates directly reporting and accountable to one superior.



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