Advantages of a Formal Organisation

141 g) ensures that efficiency of employees can easily be measured due to predetermination of rights and duties of each individual. h) provides for well-defined authority and responsibility to avoid friction and misunderstanding. i) makes officers accountable for resources allocated to them. j) makes standardization of work become practicable.
Disadvantages of Formal Organisation

(a) In this type of organisation, procedures, programmes, rules, etc, are followed strictly, that is why changes are difficult to effect. b) Rules are considered more important than persons. c) A formal organisation is impersonal that is why, human feelings have no place here. d) This organisation takes into consideration only the formal communication and creates obstacles in the application of informal communication. e) Excessive and undue use of authority may take place in this type of organisation. f) No consideration is given to the social and other needs of the human resources.
Advantages of Informal Organisation
(a) Informal organisation may fill in gaps, if any, in the abilities of managers. b) Informal organisation may help in solving work problems of members. c) Informal groups develop certain norms of behaviour which differentiate between good and bad conduct and between legitimate and illegitimate activities. d) Informal groups recognise talented workers as their leaders. e) A manager can build better relations with his subordinates through informal contacts. f) Informal groups often fill up communication gap which might arise in the organisation.

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