Post on 15-Jul-2020
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An Academic presentation byDr. Nancy Agens, Head, Technical Operations, Phdassistance Groupwww.phdassistance.com Email: info@phdassistance.com
REASONS FOR ADVANTAGES AND DISADVANTAGES OF FORMAL ORGANIZATIONAL STRUCTURE
In Brief
Introduct ion
Formal Organizational Structures
Reasons for Formal Organizational Structure
Organizational Structure that Supports Digital Transformation
Outline
TODAY'S DISCUSSION
Features of Formal Organization
Advantages of Formal Organizational Structure
Disadvantages of Formal Organization
Conclusion
Future Scopes
A network in which various cooperative ties are formed between different positions of organizations is a formal
organizational structure that has been intentionally created for protecting economic processes. The Decision-
making task is made simple for individuals as a result of a formal organizational structure.
In Brief
A well-constituted body that is mutually established with a vow of loyalty to achieve a specific purpose or pre- determined goal is a formal organizational structure.
It is characterized by a well-defined organizational structure, task specialization, division of work, and consistency of finished products.
Thus, the formal organizational structure functions based on the operation of a well-structured and organized network that is both coordinated and well-managed by experts and researchers.
Contd..
Introduction
Decision Making Task
Each individual is attached to various groups or clusterswithin an organization.
Some of them are defined explicitly and more formally whereas some groups are informal and they emerge from more vague and hidden factors.
The formal organizational structure is a network that constitutes various cooperative ties between different positions in organizations.
This study is mainly focused on the organizational structure, which is defined by the top management.
Formal Organizat ional Structures
Organizat ional Structure
Reasons for FormalOrganizat ional Structure
Contd..
STRUCTURE AS AN EMPIRICAL OBJECT
a. Most of the characters or dimensions that are analyzed by the experts describe particularly Weber’s stipulation of written messages, etc.
b. An organization, which is an information-processing entity, forms the basis of many of these discussions.
Contd..
The organizational structure is used to determine the arrangement or the form of the system’s subunits significantly.
STRUCTURE AS SYSTEM FORM
3STRUCTURE AS AN INFORMATIONPROCESSING TOOL
Information about organizational structure informs the employee about what has to be done, whose orders to be followed, and whom to update about the employee's activities and outcomes.
Formal structure is designed in a way that employees are enclosed by properI nformation Environment to make appropriate decisions.
The organizational structure serves as a stimulus to other phenomena.
Due to the formal structure of organizations, its socio- psychological processes have been transformed.
STRUCTURE AS CARRIER OF SOCIAL PSYCHOLOGICALPROCESSES
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Decision making of organizations often quits from the state of wisdom.
When ambiguity and complexity of organizations are distinctive, participants, problems, solutions, and choice opportunities are badly built in a random way.
STRUCTURE AS NEGOTIATED
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Contd..
Formal Organizat ional Structure
Digital technologies assist organizations to reinvent the whole process of business and also to establish new ones.
An organizational structure which has been characterized by decentralized decision-making, more flattening structure, rapid transfer of knowledge among employees, greater coordination, etc.
As old technical models were not flexible, with strong internal and external boundaries, the progress of the new structure of the organization is unavoidable.
Organizational Structure that Supports Digital Transformat ion
(1) The process of organizing has intentionally created a formal o rganizational structure.
(2) The achievement of the goal of organizations is the purpose of the formal organization structure.
(3) Each individual has got a specific task in the formal structure of organizations.
(4) Each individual has decision-making power in the formal organizational structure.
(5) The superior-subordinate relationship has been formed in the formal organizational structure.
(6) A scalar chain of communication has been formed in the formal organizational structure.
Features of FormalOrganization
1. S ystematic Working: Organization has got systematic andsmooth functioning due to the formal organizational structure.
2. A chievement of Organizational Objectives: Organizational objectives have been established by the formal organizational structure.
3. N o Overlapping of Work: Every departments and employee have work divided among them in the formal organizational structure.
4. C o-ordination: Activities of various departments have been coordinated as a result of formal organizational structure.
Contd..
Advantages of FormalOrganizat ional Structure
5. Creation of Chain of Command: superior-subordinate relationship has been well-established in the formal organizational structure.
6. More Emphasis on Work: importance is given to work than interpersonalrelations in the formal organizational structure.
1. Delay in Action: Actions may get delayed whilefollowing the chain of order and scalar chain.
2. Ignores Social Needs of Employees: Social and psychological needs of employees were not given importance in the formal organizational structure.
3. Stresses on Work Only: Work is given more importance in the formal organizational structure.
Disadvantages of Formal Organization
Formal structures mean purposely designed organizationsthat result from larger institutional arrangements.
Research carries in various disciplines recommends that formal organizational structure can form beliefs, opinions, and behaviors of individuals.
Formal organizations are illustrated as the opinions and characteristics of organizational members that have been restricted by shared organizational culture.
Conclusion
Researchers better understand the consequences of formal organizational structures on the apparent strategic alignment.
Organizations should look for the lateral mechanisms to break the impact of silos due to significance over the influence of the functional division.
Future research should be carried out to identify a mechanism that reveals the insights on the alignments that progress in companies.
Future Scopes
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