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The Daily Insight Hub

What are the merits and demerits of formal organization?

Author

Isabella Turner

Updated on January 18, 2026

Advantages of Formal Organisation:

  • Systematic Working:
  • Achievement of Organisational Objectives:
  • No Overlapping of Work:
  • Co-ordination:
  • Creation of Chain of Command:
  • More Emphasis on Work:
  • Delay in Action:
  • Ignores Social Needs of Employees:

What are the demerits of informal organization?

Following are the disadvantages of informal organisation:

  • (1) It Creates Rumors: All the persons in an informal organisation talk carelessly and sometimes a wrong thing is conveyed to the other person which may bring in horrible results.
  • (2) It Resists Change:
  • (3) Pressure of Group Norms:

    What is the advantage of formal Organisation?

    The formal organisation clearly outlines the relationships among employees. Hence, it becomes easier to rack responsibilities. An established chain of commands maintains the unity of command.

    What are the features of formal Organisation?

    Formal organisation has the following features:

    • Deliberately created structure:It is a deliberately created structure that defines official relationships amongst people working at different job positions.
    • Job-oriented:
    • Division of work:
    • Departmentation:
    • Formal authority:
    • Delegation:
    • Coordination:

    What is an advantage of informal Organisation?

    Informal organizations have several benefits. Firstly, they inculcate a sense of unity and togetherness among their members. This happens because of the social interactions they indulge in with each other. This consequently leads to work satisfaction and stability in the organization.

    What are the advantages of informal and formal organizations?

    By cooperating with the informal groups the managers can skillfully take the advantage of both formal and informal organisations. 1. Spread Rumours: According to a survey 70% of information spread through informal organisational structure are rumors which may mislead the employees. 2. No Systematic Working:

    How is informal structure different from formal structure?

    (3) Informal organisational structure does not follow any fixed path of flow of authority or communication. (4) Source of information cannot be known under informal structure as any person can communicate with anyone in the organisation. (5) The existence of informal organisational structure depends on the formal organisation structure.

    Which is a feature of a formal organisation?

    Features of Formal organisation: 1 (1) The formal organisational structure is created intentionally by the process of organising. 2 (2) The purpose of formal organisation structure is achievement of organisational goal. 3 (3) In formal organisational structure each individual is assigned a specific job.

    What are the requirements of an informal group?

    Informal groups help their members in fulfilling the following requirements through their groups membership 1. Affiliation need, 2. Needs to establish a sense of identity and enhance self-respect, 3. Security need 4. Need to validate their beliefs and values, 5. Need for help in solving work problems, 6. Need to get information, and 7.