Business Studies

What is meant by 'formal organisation'? State its any two advantages.  


SOLUTION
Formal organisation is a system of well-defined rules and regulation that specify the boundary of all organisation jobs . its is deliberate process that lays more emphasis on the work to be rather than interpersonal relationship. The following are the advantage of a formal organisation 
i. Reduces confusion. In a formal organisation, unity of command is maintained through a defined set of relation. This chain specifies who is to report to whom. it helps in reducing confusion within the working within the working environment and result in timely accomplishment of goals.
ii. Provides high stability. A formal organisation provides stability as it defines the behavior of employees. By 
clearly specifying rules to guide them, it is able to predict the behavior of the workers and thereby provides high stability to the organisation.
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Subjective Medium Published on 18th 09, 2020
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