question_answer

Define a formal organisation. Name and define an organisation which emerges within the boundaries of a formal organisation, when people interact beyond their officially assigned roles, also give three importance of it.

Answer:

Formal Organisation refers to the organisation structure which is designed by the management to accomplish a particular task. it specifies clearly the boundaries of authority and responsibility which are guided by rules and procedures. Informal organisations emerges within the boundaries of a formal organisation on the basis of interactions and friendship between people working together. It is defined as a network of personal and social relations not established or required by the formal organisation but arising spontaneously as people associate with one another. Advantages of informal organisation are: (i) It brings a feeling of belongingness and self-respect. It also satisfies social and cultural needs of employees. (ii) It brings cohesiveness to formal organisation and makes it more flexible and workable. (iii) It provides spontaneous and quick channels of communication. (iv) It provides the necessary environment for individual creativity and innovation.