Term Paper OnFormal Organization: AComplete OverviewCourse Name: Organization BehaviorCourse Code: EM: 513Section: BSubmitted to: Dr. M. Ataur RahmanProfessor, Department of Management Studies,University of Dhaka.Submitted by: Md. Refat Hasan D! "#$"#%'()Safa Hossain D! "#$"#%'"*Md. +i,er Rashid D! "#$$#%'#'$-Date of Submission: .th August, %'$.1Formal Organization: AComplete Overview2/0110R 2+ 1RA3SM11A/August '&, %'$.1o,Dr. M. Ataur Rahman,Professor, Department of Management Studies,+a4u5ty of 6usiness Studies,University of Dhaka.Sub7e4t: 1erm Paper on +orma5 2rgani,ation: A 8omp5ete 2vervie9Dear Sir, :e are p5eased to submit the term paper tit5ed 1erm Paper on ;+orma5 2rgani,ation: A 8omp5ete2vervie9.uarriesregarding this assignment.Sin4ere5y,Md. Refat Hasan D: "#$"#%'()Safa Hossain D: "#$"#%'"*Md. +i,er Rashid D! "#$$#%'#'$-31ab5e of 8ontentsPage no0=e4utive summary: .$.' ntrodu4tion: (%.' 2b7e4tives of +orma5 2rgani,ation )".' 8hara4teristi4s of +orma5 2rgani,ation: -&.' +un4tions of +orma5 2rgani,ation: *..' Prin4ip5es of +orma5 2rgani,ation: $'(.' ?uide5ines for +orma5 2rgani,ation: $$).' 0thi4a5 Standard of +orma5 2rgani,ation: $$-.' mportan4e of +orma5 2rgani,ation $%*.' Mode5s@1heories of +orma5 2rgani,ation: $"*.$ 6rainstorming:.....................................................................................................................$"*.% 3omina5 ?roup:...................................................................................................................$"*." De5phi De4ision ?roup:.......................................................................................................$&*.& Dia5e4ti4 De4ision Methods:................................................................................................$.$'.' 6enefits of +orma5 2rgani,ation: $.$'.$ +inan4ia5 Aspe4ts of benefits:............................................................................................$.$'.% So4ia5 Aspe4ts of benefits:.................................................................................................$($$.' /imitations of +orma5 2rgani,ation $)$%.' nforma5 2rgani,ation: $)$".' 3ature of informa5 organi,ation: $-$&.' Aey 4hara4teristi4s of the informa5 organi,ation: $*$..' +un4tions of informa5 organi,ations: %'$(.' 6enefits of nforma5 2rgani,ation: %$$).' Prob5ems asso4iated 9ith nforma5 2rgani,ations: %%$-.' Distin4tion bet9een forma5 and nforma5 2rgani,ation: %&$*.' Re4ommendations 8on45usion: %(

Executive summary:+orma5 organi,ationis a fi=ed set of ru5es of intra#organi,ation pro4edures and stru4tures. Assu4h, it is usua55y set out in 9riting, 9ith a 5anguage of ru5es that ostensib5y 5eave 5itt5e dis4retionfor interpretation. nsome so4ieties andinsome organi,ations, su4hru5es maybestri4t5yfo55o9edB in others, they may be 5itt5e more than an empty forma5ism. 1ofa4i5itate thea44omp5ishment of the goa5s of the organi,ation: n a forma5 organi,ation, the 9ork is de5egatedto ea4h individua5 of the organi,ation. 1o fa4i5itate the 4o#ordination of various a4tivities: 1heauthority, responsibi5ity, anda44ountabi5ityof individua5s intheorgani,ationarevery9e55defined hen4e, fa4i5itating the 4o#ordination of various a4tivities of the organi,ation veryeffe4tive5y.1o aid the estab5ishment of 5ogi4a5 authority re5ationship: 1he responsibi5ities of the individua5sin the organi,ation are 9e55 defined. 1hey have a definite p5a4e in the organi,ation due to a 9e55defined hierar4hi4a5 stru4ture 9hi4h is inherent in any forma5 organi,ation.C+orma5,C as Aat,enba4h and Ahan des4ribe it, 4omprises the rationa5, programmati4 e5ements ofanorgani,ationgenera55yfoundin4hartsandonpaper. 1hesee5ements in45udethe9rittenstru4ture of the business, forma5 strategies and programs, reporting re5ationships, pro4esses, andperforman4e metri4s.1he informa5 organi,ation is more emotiona5. tDs 9hat goes on in the ha559ays and behind 45oseddoors, in45udingre5ationshipsthat 4onne4t peop5ein9ays that arenDt possib5eintheforma5organi,ation. 1he informa5 organi,ation en4ompasses e5ements su4h as 9orkersD persona5 va5ues,informa5 net9orks they deve5op, 4ommunities of 4ommon interest, pride#bui5ding 4onne4tions,andpeer#to#peer intera4tions. :henorgani,ationisforma5, it isverysystemati4. t has5ineauthority to de5egate de4ision for organi,ationa5 su44ess and take 4orre4tive measures 9ith the4hange of system,te4hno5ogy andp5anning. +orma5organi,ation4an be4onsistent5yfor9ard5inking if it is in system and the pro4edures are maintained step by step. n our organi,ation, 9eshou5d maintain both forma5 and informa5 organi,ationa5 system. 0mp5oyees be4ome motivatedand ideas are generated 9hen it is informa5. 51.0 ntro!uction:Depending on the group dynami4s E organi,ation fun4tions 9e 4an divide the organi,ations inthe fo55o9ing t9o groups:$. +orma5 2rgani,ation%. nforma5 2rgani,ation1his is main5y done depending on the organi,ationFs 9orking pro4edures E identity in the eye ofthepub5i4. Someofthepopu5arnotionsofforma5 organi,ationsaredes4ribedbe5o9: Ru5esestab5ished by an organi,ation to govern pro4edures and operations. 1hese ru5es are genera55y in9riting and very spe4ifi4, 5eaving 5itt5e room for misunderstandings. Depending on the individua5organi,ation, these ru5es may be stri4t5y adhered to or in some 4ases 4onsidered 5itt5e more than aforma5ity that fe9 fo55o9.1he above notion of defining an organi,ation as forma5 or informa5 is done depending on theoperating pro4edure E the respe4tive individua5 vie9s regarding the operation.Formal Organization:1heforma5 organi,ationisbasi4a55ygoa5#orientedentitythat e=ist toa44uratetheeffortsofindividua5sandit referstothestru4ture of 7obs andpositions 9ith 45ear5ydefinedfun4tions,responsibi5ities and authorities.A44ordingto8hester 6anard;anorgani,ationisforma5 9henthea4tivitiesare4oordinatedto9ards a 4ommon ob7e4tiveuire groups they 4an de5iberate5y 4reate forthe a4hievement of spe4ifi4 goa5s. Amitai 0t,ioni 45assified organi,ations on the basis of peop5eDsreasons for entering them: vo5untary, 4oer4ive, and uti5itarian.1his notion main5y dea5s 9ith the standardi,ation of organi,ation operation Epersonne5behavior regarding the organi,ation.;+orma5 organi,ation is a group that restri4ts membership and makes use of offi4ia55y designatedpositions and ro5es, forma5 ru5es and regu5ations, and a bureau4rati4 stru4ture.uen4e and stru4tures. t is afirm5y given order, 9hi4h is usua55y a5so in 9riting fi=ed. 1he forma5 organi,ation is providede=p5i4it5y, in the form of ru5es and permits most5y on5y sma55 interpretation 45earan4e.uirements. 1he 9or5d is4hanging everyday E so the environment in 9hi4h the organi,ation is operating. 1o keep up 9iththe ever 4hanging environment the organi,ation needs to deve5op embra4ing 4hanges. n a forma5organi,ation the pro4ess of deve5opment be4omes easier... De4ision Making Pro4ess:t provides a stru4ture for 5aying do9n pay s4a5es and taking other de4isions 5inked toorgani,ationa5 5eve5s.A forma5organi,ation is 5ogi4a5distribution of resour4es to a4hieve the4ompany goa5 in a mosteffi4ient manner. Any de4ision making regarding the organi,ation iseasy E easy to imp5ement.(. Human Resour4e Deve5opment:t he5ps in other human resour4es deve5opment a4tivities su4h as re4ruitment, promotions, 4areerp5anning and deve5opment and manpo9er p5anning. 1he important part of an organi,ation is its12emp5oyees. 1he deve5opment Eimprovement of human resour4e is easy in a forma5organi,ation.). 8o#ordination in Different Departments:An organi,ation 4onsists of different departments to 4arry out various a4tivities and 4ontributesin the u5timate fun4tion of the organi,ation. n a forma5 organi,ation a55 the departments are 9e55out 5ineda5ong9iththeir a4tivities. Soit is easytore5ate E4o#ordinate. 1hus a forma5organi,ation is easier to manage./.0 0o!els1T'eories o% Formal Organization:1here are manytheories regardingho9forma5 organi,ationFs operations are performedEstandardi,ed. 1he popu5ar notions are des4ribed be5o9:/.1 2rainstorming:6rainstorming is a popu5ar method of en4ouraging 4reative thinking in a forma5 group. t is bui5taround four basi4 guide5ines for the parti4ipants:$. ?enerate as many ideas as possib5e.%. 1o be 4reative, free9hee5ing E imaginative.". 6ui5d upon, e=tend or 4ombine ear5ier ideas.&. :ithho5d 4riti4ism of others ideas.1here are t9o main prin4ip5es under5ine brainstorming. +irst one is deferred 7udgment, by 9hi4ha55 ideas Geven unusua5 E impra4ti4a5 ones are en4ouraged 9ithout 4riti4ism or eva5uation. 1hepurpose of deferred 7udgment is to separate idea 4reation from idea 4ensorship.1hese4ondprin4ip5e is >uantitybreeds>ua5ity. Asmoreideas 4omeforth,eventua55yhigher>ua5ityones9i55 bedeve5oped. :hentheseprin4ip5es arefo55o9edbrainstormingtypi4a55yprodu4es more ideas than the 4onventiona5 approa4h of 4ombined thinking E 7udging./." 3ominal +roup:Anomina5 groupe=ists inname on5y, 9ithmembers havingminima5 intera4tion prior toprodu4ing a de4ision. Here are the steps that nomina5 groups often fo55o9:$. ndividua5s are brought together E prob5em is shared 9ith them.%. 1hey deve5op so5utions independent5y, often 9riting them on 4ards.13". 1heir ideas are shared 9ith others in a stru4tured format.&. 6rief time is a55o9ed so that >uestions 4an be asked#but on5y for 45arifi4ation... ?roupmembersindividua55ydesignatetheirpreferen4esforthebesta5ternativesbyse4retba55ot.(. 1he group de4ision is announ4ed.Pros & Cons:Advantages of the nomina5 group te4hni>ue in45ude the opportunity for e>ua5 parti4ipation for a55members, the open dis4ussion by any member E the tight 4ontro5 of time that the pro4ess a55o9s.Disadvantages reported are that group members are frustrated by the rigidity of the pro4edure,gain no fee5ings of 4ohesiveness, E do not have the opportunity to benefit from 4ross ferti5i,ationof ideas./.& 4elp'i 4ecision +roup:A pane5 of re5evant peop5e is 4hosen to address an issue. Members are se5e4ted be4ause they aree=perts or have re5evant informationtoshare Ethe time avai5ab5e todoso. Aseries of>uestionnaires are se>uentia55y distributed to the respondents, 9ho do not need to meet fa4e tofa4e. A55 responses typi4a55y are in 9riting. Pane5ists may be asked to identify future prob5ems,pro7e4t market trends or predi4t a future state of affairs. 0=p5anations of their 4on45usions a5so4an be shared. Rep5ies are gathered from a55 parti4ipants, summari,ed E fed ba4k to the membersfor their revie9. 1heparti4ipants areaskedtomakeanother de4isiononthebasis of ne9information. 1he pro4ess may be repeated severa5 times unti5 the responses 4onvergesatisfa4tori5y E a fina5 report is prepared.Su44ess of De5phi de4ision pro4ess depends on ade>uate time, parti4ipant e=pertise,4ommuni4ation ski55, E the motivation of members to immerse them in the task.1he ma7or merits of the pro4ess in45ude:$. 05imination of interpersona5 prob5ems among pane5ists.%. 0ffi4ient use of e=pertsF time.". Ade>uate time for ref5e4tion E ana5ysis by respondents.&. Diversity E >uantity of ideas generated... A44ura4y of predi4tions E fore4asts made.1/.( 4ialectic 4ecision 0et'o!s:1he dia5e4ti4 pro4ess begins 9ith a 45ear statement of a prob5em to be so5ved. 1hen t9o or more4ompeting proposa5s are generated. A key step fo55o9s in 9hi4h parti4ipants identify the e=p5i4itor imp5i4it assumptions that under5ie ea4hproposa5. 1he groupthenbreaks intoadvo4a4ysubgroups, 9hi4h e=amine E argue the re5ative merits of their positions. 1hen the entire groupmakes a de4ision based on the 4ompeting presentation. 1his de4ision may mean embra4ing oneof the a5ternatives, forging a 4ompromise from severa5 ideas or generating a ne9 proposa5.1he merits of DDM in45ude better understanding of the proposa5s, their under5ying premises, Etheir pros E4ons by the parti4ipants. Disadvantages in45ude the propensity to forge a4ompromise in order to avoid 4hoosing sides E the tenden4y to fo4us more on 9ho 9ere thebetter debaters than 9hi4h 9i55 be the better de4ision.?roup De4ision SUPP2R1Systemis a promising approa4h. 1hese support systems use4omputers, de4ision mode5s Ete4hno5ogi4a5 advan4es to remove 4ommuni4ation barriers,stru4ture the de4ision pro4ess, E genera55y dire4t the groupsF dis4ussion. 1he potentia5 gains in>ua5ity of de4ision are substantia5 from the integration of 4ommuni4ation, 4omputers E de4isionte4hno5ogies.10.0 2ene5ts o% Formal Organization:Aforma5 organi,ationhas benefi4ia5 aspe4ts inthe9ayit runs Eits re5ationship9ithitsemp5oyees. Main5y the emp5oyees are the main benefi4iary of a forma5 organi,ation a5ong 9iththe environment in 9hi4h they are operating. n this topi4 9e 9i55 dis4uss the benefits of theemp5oyees 9orking in a forma5 organi,ation. 1he benefits 4an be en5isted as fo55o9ed:10.1 Financial Aspects o% #ene5ts:$. Se4urity:A forma5 organi,ationismoreestab5ishedEtheentityofthe4ompanyisnotdependent onindividua5 5osses. So 9orking in su4h a organi,ation provides a se4ured finan4ia5 support to theemp5oyees E the emp5oyees 9orking here is more devoted to 9ork.%. S5o9 but steady promotion:n a forma5 organi,ation the promotion may not be rapid due to a 4hain of 4ommand but 9ith4ertain seniorityinthe organi,ation 9ith suffi4ient performan4e a personne5 is sure of apromotion.". 8ommissioned ranks open to men and 9omen graduates:Aforma5 organi,ation 9i55 a59ays put preferen4e to re4ruit graduate or high5y edu4atedpersonne5, in this 9ay 4reating 7ob opportunities for this 45ass of peop5e.15&. 8anDt be fired:After re4ruiting a person a forma5 organi,ation tries its best to deve5op the personne5. n many4ases the personne5 is not genera55y fired depending on fe9 persona5 mistakes... ?ood retirement benefits:1he organi,ation of su4h va5ue 9i55 arrange a p5an for the emp5oyees so that they 4an retire 9ithbenefits.10." -ocial Aspects o% #ene5ts:$. Many different bran4hes appea5 to different interests:A forma5 organi,ation has many different departments to perform various a4tivities. So a personhas a 9ide range of options from 9hi4h he@she 4an 4hoose depending on individua5 interest Eski55 5eve5. Soas apersonthereis aoptioninthis type of organi,ationonthe4hoi4eofprofession.%. So4ia5 Status:A forma5 organi,ation has spe4ifi4 position E position names that bears the status of the personintheorgani,ation.1hesepostsarefami5iarintheenvironment the4ompanyisoperatingEoften 9orks as a so4ia5 status symbo5. 6y 9orking in a forma5 organi,ation the person has to 9ayto a4hieve su4h position E thus a4hieving a high so4ia5 a4tivity". See interesting p5a4es and peop5e:6y 9orking in a forma5 organi,ation a person gets to meet many different peop5e of differentvie9s E va5ues. 6y intera4ting 9ith these variations a person 9i55 5earn more in 9orking in su4henvironment.11.0 6imitations o% Formal OrganizationA forma5 organi,ation has many benefits both for its interna5 E e=terna5 environment but it hassome dra9ba4ks too. 1he 4ommon 5imitations 4an be 5isted as fo55o9ed:$. /imited +5e=ibi5ity:1!Asthistypeoforgani,ationisveryspe4ifi4ineverya4tivitiesthereisvery5itt5emarginoff5e=ibi5ity E spontaneous de4ision making in the 4ompany. Su4h pra4ti4e in the 4ompany 4an de#motivate the emp5oyees.%. S5o9ness of pro4essing:n a forma5 organi,ation for performing a task needs many forma5 pro4edures. Su4h forma5itiesoften s5o9 do9n the imp5ementation of de4ision making.". 8ommuni4ation 6arrier:As in a forma5 organi,ation a task needs the 4o Gordination of different departments so4ommuni4ationneedsto45ear inthispro4ess. Anykindof mis4ommuni4ationmay5eadtou5timate ineffi4ien4y.&. Hua5ity of de4ision:Sometimes the >ua5ity of the de4ision made in the top management may not be most 4ompatib5efor the 4ompany but the 4han4e of 4orre4tion is very s4ar4e... S5o9ness in Prob5em dete4tion E pro4essing:As every pro4edure goes through 5ot of forma5ities any prob5em dete4ted in the operation 5eve54annot be instant5y 4orre4ted.1he right pro4ess 9i55 take some time to dete4t the prob5em E4orre4tion E its imp5ementation. n su4h a pro4ess the organi,ation may suffer finan4ia5 5oss.1".0 n%ormal Organization::henever a set of peop5e get together and starts intera4ting on a 5ong term basis, they start toform an informa5 group. An informa5 group is more than 7ust a 4o55e4tion of peop5e. ?roups haveinterna5 so4ia5 stru4ture based on dominan4e and friendship re5ations. 1here are so4ia5 5eaders.1here are hangers#on. 1hese fa4tors inf5uen4ed the deve5opment of informa5 organi,ation.Definition of nforma5 2rgani,ation:1heinforma5 organi,ationistheinter5o4kingso4ia5 stru4turethat governsho9peop5e9orktogether in pra4ti4e. t is the aggregate of behaviors, intera4tions, norms, persona5 andprofessiona5 4onne4tions through 9hi4h 9ork gets done and re5ationships are bui5t among peop5e9ho share a 4ommon organi,ationa5 affi5iation or 45uster of affi5iations. 1he informa5organi,ation evo5ves organi4a55y and spontaneous5y in response to 4hanges in the 9ork1"environment, the f5u= of peop5e through its porous boundaries, and the 4omp5e= so4ia5 dynami4sof its members.8hester . 6arnard states, Cnforma5 organi,ation brings 4ohesiveness to forma5 organi,ation. tbrings to the members of a forma5 organi,ation, a fee5ing of be5onging, of status, a se5f respe4tand of gregarious satisfa4tion.CAeogh Iavis defines, Can informa5 organi,ation is a po9erfu5 inf5uen4e upon produ4tivity and 7obsatisfa4tion.C1endedeffe4tive5y,theinforma5 organi,ation4omp5ementsthemoree=p5i4it stru4tures, p5ansand pro4esses of the forma5 organi,ation: it 4an a44e5erate and enhan4e responses tounanti4ipated events, foster innovation, enab5e peop5e to so5ve prob5ems that re>uire4o55aborationa4rossboundaries, and4reatefootpathssho9ing9heretheforma5 organi,ationmay someday need to pave a 9ay. 1&.0 3ature o% in%ormal organization:nforma5 2rgani,ation arises from so4ia5 ntera4tion. t 9as 4on45uded by Ha9thorne0=periments that informa5 organi,ations 9ere anintegra5 part of the tota5 9orksituation.nforma5 organi,ations are the net9ork of persona5 and so4ia5 re5ations arises spontaneous5y asthe peop5e make 4onta4t 9ith ea4h other and are not the resu5t of forma5 authority. Po9er ininforma5 organi,ationsD isatta4hedtopersonandnot tothepositionandit isgivenbythemembers of, the group irrespe4tive of the position in forma5 stru4ture or is attained by the 5eader.t is>uiteunstab5esin4eit re5atestothesentimentsofthepeop5eof thegroup. Managers,genera55y, are the 5eaders in the format organi,ation and they 5ike to abo5ish the informa5 groups.6ut they 4annot do so be4ause they kno9 that they have not estab5ished them so they 4annotabo5ish.nforma5organi,ations are sma55 be4ause they are 45ose5y re5ated to the 5imitation ofpersona5 re5ationships. So, they are so many informa5 organi,ations in a forma5 organi,ation.1#nforma5 /eaders:1he 5eader of an informa5 organi,ation is e5e4ted by the members of the groups for differentreasons su4h as age, seniority, te4hni4a5, 4ompeten4e, 9ork 5o4ation, and responsive persona5ity,et4. dependingupon the9orksituation.1heremaybe asmanyinforma55eadersas thereareinforma5 groups or 9ork situations. 2ne may be a 5eader for one 4ause 9hi5e another may 5eadthe group for the other 4ause. 1hus there are innumerab5e 5eaders of varying importan4e and inreturn, they en7oy 4ertain privi5eges and re9ards and they are 5ooked upon as the respe4tab5emember of the so4iety.Ro5e of nforma5 /eader: 1he genera5 ro5e of an informa5 5eader is toaJ1o he5p the group rea4h its goa5s, andbJ 1o maintain and enhan4e group 5ife.A5though there are so many, informa5 5eaders in a group but there is on5y one primary 5eader 9hoho5ds more inf5uen4e on the gr(up. 0a4h manager of the forma5 organi,ation must kno9 9ho thekeyinforma5 5eaderofthegroupisandshou5d4onta4t himtoget hishe5pinfurtheringtheorgani,ationgoa5s. f heis 9orkingagainst theemp5oyer, he4andefa4etheimageof themanagement among the members ofD the #group and 4an undermine motivation and 7ob#satisfa4tion.A su44essfu5 5eaderofaninforma5 organi,ation4annot ne4essari5ybethesu44essfu5 forma55eader of an organi,ation. S4a5e #emerged asD arrogant bosses as soon as they re4eive the forma5authority, Some fai5 as forma5 busses be4ause they fear forma5 responsibi5ity or they are afraid of4ommentingmistakesbe4ausetheir areaofoperationismu4h9iderthanthat of5eadersof.informa5 organi,ations.1(.0 7ey c'aracteristics o% t'e in%ormal organization:1he nature of the informa5 organi,ation be4omes more distin4t 9hen its key 4hara4teristi4s are7u=taposed 9ith those of the forma5 organi,ation.$J 0vo5ving 4onstant5y%J ?rass roots"J Dynami4 and responsive&J 0=4e55ent at motivation.J Re>uires insider kno95edge to be seen(J 1reats peop5e as individua5s1$)J +5at and f5uid-J 1rust and re4ipro4ity*J Diffi4u5t to pin do9n$'J 0ssentia5 for situations that 4hange >ui4k5y or are not yet fu55y understood1).0 Functions o% in%ormal organizations:Aeith Davis suggests that informa5 groups serve at 5east four ma7or fun4tions 9ithin the forma5organi,ationa5 stru4ture.$J Perpetuate the 4u5tura5 and so4ia5 va5ues:1heyperpetuatethe4u5tura5 andso4ia5 va5uesthat thegroupho5dsdear.8ertainva5uesareusua55y a5ready he5d in 4ommon among informa5 group members. Day#to#day intera4tionreinfor4es these va5ues that perpetuate a parti4u5ar 5ifesty5e andpreserve groupunityandintegrity. +or e=amp5e, a 4o55ege management 45ass of .' students may 4ontain severa5 informa5groups that 4onstitute the informa5 organi,ation 9ithin the forma5 stru4ture of the 45ass. 1hesegroupsmaydeve5opout offraternityorsororityre5ationships, dormresiden4y, pro7e4t 9orkteams, or seatingarrangements. Dress4odes, hairsty5es, andpo5iti4a5 partyinvo5vement arereinfor4ed among the group members.%J Provide so4ia5 status and satisfa4tion:1hey provide so4ia5 status and satisfa4tion that may not be obtained fromthe forma5organi,ation. na5argeorgani,ationKor45assroomJ, a9orkerKorstudentJ mayfee5 5ikeananonymous number rather than a uni>ue individua5. Members of informa5 groups, ho9ever, share7okesandgripes, eat together, p5ayand9orktogether, andarefriends#9hi4h4ontributes topersona5 esteem, satisfa4tion, and a fee5ing of 9orth."J Promote 4ommuni4ation among members:1he informa5 group deve5ops a 4ommuni4ation 4hanne5 or system Ki.e., grapevineJ to keep itsmembersinformedabout 9hat management a4tions9i55 affe4t theminvarious9ays. Manyastute managers use the grape# vine to Cinforma55yC 4onvey 4ertain information about 4ompanya4tions and rumors.&J Provide so4ia5 4ontro5:2%1hey provide so4ia5 4ontro5 by inf5uen4ing and regu5ating behavior inside and outside the group.nterna5 4ontro5 persuades members of the group to 4onform to its 5ifesty5e. +or e=amp5e, if astudent starts to 9ear a 4oat and tie to 45ass, informa5 group members may ra,, and 4onvin4e thestudent that su4h attire is not a44eptab5e and therefore to return to sanda5s, 7eans, and 1#shirts.0=terna5 4ontro5 is dire4ted to su4h groups as management, union 5eadership, and other informa5groups.1*.0 2ene5ts o% n%ormal Organization:$J 6etter 1ota5 System:nforma5 2rgani,ations b5end9ithforma5 systems tomakeaneffe4tivetota5 system. Somere>uirements 4an be met better by informa5 re5ations, 9hi4h 4an be f5e=ib5e and spontaneous.%J /ighter 9ork5oad for management:nforma5 2rgani,ations5ightenthe9ork5oadonmanagement. :henmanagerskno9that thenforma5 2rgani,ation is 9orking 9ith them, they fee5 5ess 4ompe55ed to 4he4k on the 9orkers tobe sure everything is shipshape."J :ork group satisfa4tion:nforma5 2rgani,ations give satisfa4tion and stabi5ity to 9ork groups. :orkers fee5 a sense ofbe5onging and se4urity, so satisfa4tion is in4reased and turnover redu4ed.&J A safety va5ve for emotions:nforma5 2rgani,ation is a safety va5ve for emp5oyee frustrations and other emotiona5 prob5em.0mp5oyees mayre5ieveemotiona5 pressuresbydis4ussingthem9ithsomeonee5se9ithinnforma5 group..J 8ohesiveness:8ohesiveness is indi4ated by ho9 strong5y the emp5oyees sti4k together, re5y on ea4h other, anddesire to remain members of the group.(J +i55 up gaps:21f a manager is 9eak in p5anning, an emp5oyee may informa55y he5p 9ith p5anning. n this 9ayp5anning is a44omp5ished in spite of the managerFs 9eakness. 1hus nforma5 2rgani,ations a4t tofi55 in gaps in a managerFs abi5ities.)J 8hanne5 of emp5oyee 4ommuni4ation:nforma5 2rgani,ation provides the means for peop5e to keep in tou4h, to 5earn more about their9ork, and to understand 9hat is happening in their environment. 1hus nforma5 2rgani,ation 4anbe a usefu5 4hanne5 of emp5oyee 4ommuni4ation.-J 1o p5an and a4t more 4arefu55y:1he presen4e of nforma5 2rgani,ations en4ourages managers to p5an and a4t more 4arefu55y thanthey 9ou5d other9ise. 6e4ause they kno9 nforma5 groups 4an undermine even a 9orth9hi5epro7e4t*J 0n4ourage 8ooperation:nforma5 ?roup support of a manager 5eads to better 4ooperation and produ4tivity. t he5ps getthe 9ork done.$'J Understanding and Dea5ing 9ith the 0nvironmenta5 8risis:1he R? So5ution # hierar4hi4a5 in4ompeten4e and ho9 to over4ome it$*-&, argued, that 8entra5media andgovernment type hierar4hi4a5 organi,ations 4ou5dnot ade>uate5yunderstandtheenvironmenta5 4risis 9e 9ere manufa4turing, or ho9 to initiate ade>uate so5utions. t argued that9hat 9as re>uired 9as the 9idespread introdu4tion of informa5 net9orks or nformation Routing?roups 9hi4h 9ere essentia55y a des4ription of so4ia5 net9orking servi4es prior to the internet.$$J 0n4ourage improved management pra4ti4e:Perhaps a subt5e benefit of informa5 groups is that they en4ourage managers to prepare, p5an,organi,e, and 4ontro5 in a more professiona5 fashion. Managers 9ho 4omprehend the po9er ofthe informa5 organi,ation re4ogni,e that it is a C4he4k and ba5an4eC on their use of authority.1,.0 Pro#lems associate! wit' n%ormal Organizations:$J Resistan4e to 4hange:Perpetuation of va5ues and 5ifesty5e 4auses informa5 groups to be4ome over5y prote4tive of theirC4u5tureC and therefore resist 4hange. +or e=amp5e, if restri4tion of output 9as the norm in anauto4rati4 management group, it must 4ontinue to be so, even though management 4hanges havebrought about a more parti4ipative administration.%J Ro5e 4onf5i4t:221he >uest for informa5 group satisfa4tion may 5ead members a9ay from forma5 organi,ationa5ob7e4tives. :hat is good for and desired by informa5 group members is not a59ays good for theorgani,ation. Doub5ing the number of 4offee breaks and the 5ength of the 5un4h period may bedesirab5e for group members but 4ost5y and unprofitab5e for the firm. 0mp5oyeesD desire to fu5fi55the re>uirements andservi4es of boththe informa5 groupandmanagement resu5ts inro5e4onf5i4t. Ro5e4onf5i4t 4anbe redu4edby4arefu55yattemptingtointegrate interests, goa5s,methods, andeva5uationsystemsofboththeinforma5 andforma5 organi,ations, resu5tingingreater produ4tivity and satisfa4tion on everyoneDs beha5f."J Rumor:1he grapevine dispenses truth and rumor 9ith e>ua5 vengean4e. 55#informed emp5oyees4ommuni4ate unverified and untrue information that 4an 4reate a devastating effe4t onemp5oyees. 1his 4an undermine mora5e, estab5ish bad attitudes, and often resu5t in deviant or,evenvio5ent behavior.+ore=amp5e, astudent 9hof5unksane=am4anstart arumor that aprofessor is making se=ua55y harassing advan4es to9ard one of the students in 45ass. 1his 4an4reate a55 sorts of i55 fee5ings to9ard the professor and even resu5t in vengefu5 a4ts 5ike CeggingCthe residen4e or kno4king over the mai5 bo=.&J 8onformity:So4ia5 4ontro5promotesanden4ourages4onformityamonginforma5 groupmembers, therebymaking them re5u4tant to a4t too aggressive5y or perform at too high a 5eve5. 1his 4an harm theforma5 organi,ation by stif5ing initiative, 4reativity, and diversity of performan4e. n some 6ritishfa4tories, if a group member gets Cout of 5ineuired behavior. 1he 4hara4terand4ompeten4eofmanagement tendtosuffer.nforma5 organi,ationmayridi4u5eandevensabotages the pro4ess, pra4ti4es and 4u5ture of forma5 organi,ations.(J Po9er po5iti4s:nforma5 organi,ations are often ridd5ed 9ith fi4tiona5i,ation and po9er po5iti4s. Members diverttheirenergyand time from7obs to 7ung5einfa4tion 5ighting andpetty po5iti4s.1heinforma55eader may manipu5ate the group to9ards se5fish or undesirab5e ends.23)J nterpersona5 and intergroup 4onf5i4ts:nforma5 organi,ation a5so deve5ops interpersona5 and interna5 group 4onf5i4t that 4an be damageto their organi,ation. :hen emp5oyees give more of their thoughts and energies to opposing oneanother, they 4an 5ike5y to give 5ess to their emp5oyer. 8onf5i4ts and se5f# interests 4an be4ome sostrong in informa5 organi,ation that they redu4ed emp5oyeeFs motivation and satisfa4tion.1..0 4istinction #etween %ormal an! n%ormalOrganization:$J n Meaning:A +orma5 2rgani,ation has its o9n ru5es and regu5ation. 1hese ru5es must be fo55o9ed by themembers Kemp5oyees and managersJ. A forma5 organi,ation has a system of 4o# ordination. ta5sohasasystemof authority. t has a45ear superior#subordinatere5ationship. naforma5organi,ation,the ob7e4tives are spe4ifi4 and 9e55#defined.A55 the members are given spe4ifi4duties and responsibi5ities.An informa5 organi,ation does not have its o9n ru5es and regu5ation.t has no system of 4o#ordination and authority. t doesnDt have any superior#subordinate re5ationship or any spe4ifi4 and9e55#definedob7e4tives. Hereininforma5 organi,ation, 4ommuni4ationis donethroughthegrapevine.%J +ormed by :hom:A forma5 organi,ation is formed by the top 5eve5 management.An informa5 organi,ation is formed by so4ia5 for4es 9ithin the forma5 organi,ation."J Ru5es and Regu5ations:1he members of a forma5 organi,ation have to fo55o9 4ertain ru5es and regu5ations. 1hese ru5esare avai5ab5e in 9riting Kdo4umentedJ. 1hey are made by a forma5 authority KsuperiorsJ. f themembers fo55o9 these ru5es proper5y, then they 9i55 be re9arded. Ho9ever, if they do not fo55o9these ru5es, they 9i55 be punished.1he members of an informa5 organi,ation do not have to fo55o9 any ru5es and regu5ations.&J Duties and Responsibi5ities:2n a forma5 organi,ation, the duties, responsibi5ities, authority and a44ountabi5ity of ea4h memberis 9e55#defined.n an informa5 organi,ation, there are no fi=ed duties, responsibi5ities, authority, a44ountabi5ity,et4. for the members..J 2b7e4tives or ?oa5s:na forma5 organi,ation, the ob7e4tives or goa5s are spe4ifi4 and9e55#defined. 1he mainob7e4tives of a forma5 organi,ation are produ4tivity, gro9th, and e=pansion.n an informa5 organi,ation, the ob7e4tives are not spe4ifi4 and 9e55#defined. 1he main ob7e4tivesof aninforma5 organi,ationarefriendship, se4urity, 4ommoninterest, individua5 andgroupsatisfa4tion, et4.(J Stabi5ity:A forma5 organi,ation is stab5e.An informa5 organi,ation is not stab5e.)J 8hanne5s of 8ommuni4ation:A forma5 organi,ation uses forma5 4hanne5s of 4ommuni4ation.An informa5 organi,ation uses informa5 4hanne5s of 4ommuni4ation Ki.e. grapevineJ-J 2rgani,ation 8hart:A forma5 organi,ation is sho9n on the organi,ation 4hart.An informa5 organi,ation is not sho9n on the organi,ation 4hart.*J Superior#Subordinate Re5ationship:n a forma5 organi,ation, there e=ists a superior#subordinate re5ationship.n an informa5 organi,ation, there is no su4h superior#subordinate re5ationship.$'J 6enefits for Members:1he members of the forma5 organi,ation get finan4ia5 benefits and perks 5ike 9ages or sa5aries,bonus, trave55ing a55o9an4es, hea5th insuran4e, et4.251he members of informa5 organi,ation get so4ia5 andpersona5 benefits 5ike friend 4ir45e,4ommunity, groups, et4.1/.0 8ecommen!ations Conclusion:+rom the above dis4ussions, 9e find that the forma5 organi,ation is a kind of system to a4hieveorgani,ation goa5s 9ith the 4oordinated efforts. 6ut, 9e may 5ike to produ4e some suggestion forforma5 organi,ing system to a44e5erate the fun4tions of the organi,ation. 1hese suggestions areas fo55o9s:$. +orma5 organi,ation4reatesbureau4ra4yandit 4reates5ingeringofthe9ork. +ore=amp5e, ?overnment organi,ations are forma5 organi,ations. 6ut, 9e findureau4ra4y in every government offi4e. n private organi,ation, management de4isionisde5ayedforforma5 authoritysystem. 1herefore, systemshou5dbefo55o9edandmanagement po5i4ies shou5d be 45ear among a55 the emp5oyees.%. Sometimes manyorgani,ations donot fo55o94hainof 4ommand a44ordingto4ompany po5i4ies. 1his time it 4reates 4onf5i4t among management peop5e. 1herefore,a55 managers shou5d be 4arefu5 of it and 4ome to the same opinions.". Sometimes, de5egation of authority might be un45ear and 5ingering be4ause ofde4ision making and 4onf5i4t of thinking. 1herefore, the system shou5d be 45ear.&. Authori,ation of po9er and 4ontro55ing may be diffi4u5t in some 4ases be4ause a55authority persons may not be present at the same time... AdamSmithFs Division of 5abor is not a motivating fa4tor but it is forma5organi,ation makes this theory. 1his is a traditiona5 thinking. :e shou5d 4hange thisout5ook. (. nforma5 organi,ation, industria5 issuesKsu4has 1radeUnion, 86AJ may4ause4onf5i4t among management and 9orkfor4e be4ause 1rade Union and 86A invo5vethem in po5iti4s and it 4reates manipu5ation, misuse of po9er and 4onf5i4ts. 1herefore,it shou5dbehand5edveryta4tfu55yandit takes timeof management peop5efor4on4entration.). +orma5 organi,ation shou5d sometimes fo55o9 some informa5 organi,ationa5 systemso that it 4an boost up 9ork and de4ision.2!+rom the above points and e=p5anations, it is very 45ear 9hen organi,ation is forma5, it is verysystemati4. t has 5ine authority to de5egate de4ision for organi,ationa5 su44ess and take4orre4tive measures 9ith the 4hange of system, te4hno5ogy and p5anning. +orma5 organi,ation4an be 4onsistent5y for9ard 5inking if it is in system and the pro4edures are maintained step bystep. n our organi,ation, 9e shou5d maintain both forma5 and informa5 organi,ationa5 system.0mp5oyees be4ome motivated and ideas are generated 9hen it is informa5. 2"Bibliography:$. nforma5 2rgani,ations and 1heir Re5ation to +orma5 2rgani,ations, 8hester .6arnard%. Understanding 6usiness, (@e, K:i55iam ?. 3i4ke5sJ". 0n4y45opedia 6ritanni4a&. 2rgani,ationa5 6ehaviorKhumanbehaviorat 9orkJ, Iohn :.3e9stormandAeithDavis.. +rom :ikipedia, the free en4y45opedia +orma5 2rgani,ation#%'$.(. 1he Ha9thorne studies K$*%$*"%J#05ton Mayo nforma5 2rgani,ation ). 3ei5 Aokemu55er K%''%'')J. Marketing Professor-. 6ook: 2rgani,ationa5 6ehavior#Dr. M. Ataur Rahman, Professor of ManagementDepartment.*. Management S4ien4e# Divisoin of /abor#Adam Smith$'. nside the nforma5 2rgani,ation:Asso4iations 3o9, De4ember %'$' , +eature6y: Aristin 85arke 2#