Formal and Informal Organizations
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Questions and Answers

How is a formal organization typically established?

  • By electing a leader among the members
  • Based on proper rules and regulations (correct)
  • Without defined authority or responsibility
  • Through spontaneous emergence

Which type of communication is generally used in a formal organization?

  • Written communication (correct)
  • Oral communication
  • Horizontal communication
  • Informal communication

In a formal organization, how does authority typically flow?

  • From bottom to top
  • Horizontally among members
  • Equally among all members
  • From top to bottom (correct)

What is the typical relationship between members in a formal organization?

<p>Impersonal (D)</p> Signup and view all the answers

What is the basis of establishment for formal organizations?

<p>Proper rules and regulations (C)</p> Signup and view all the answers

How does the scope of an informal organization compare to that of a formal organization?

<p>Narrower (A)</p> Signup and view all the answers

Who usually leads a formal organization?

<p>Managers (C)</p> Signup and view all the answers

What tool is used to illustrate the structure of a formal organization?

<p>Organization chart (A)</p> Signup and view all the answers

What is the primary purpose of a formal organization?

<p>To achieve pre-determined goals of an enterprise (C)</p> Signup and view all the answers

Which type of organization is generally more stable?

<p>Formal organization (A)</p> Signup and view all the answers

What is the main objective of an informal organization?

<p>Fulfilling psychological and social needs (A)</p> Signup and view all the answers

In which type of organization are authority, responsibility, and accountability clearly defined?

<p>Formal organization (B)</p> Signup and view all the answers

Which of the following characteristics best describes an informal organization?

<p>Flexibility and adaptability based on social relationships (B)</p> Signup and view all the answers

Which type of organization is generally larger in size?

<p>Formal organization (B)</p> Signup and view all the answers

Which type of organization is considered more essential for achieving stability within a company?

<p>Formal organization (A)</p> Signup and view all the answers

What is a key difference between formal and informal organizations regarding rules and regulations?

<p>Informal organizations lack established rules. (C)</p> Signup and view all the answers

Flashcards

Organization

A collection of people working together to achieve objectives.

Formal Organization

An organization with clearly defined authority, responsibility, and accountability.

Informal Organization

An organization without clearly defined authority and responsibilities.

Objectives of Formal Organization

To achieve predetermined goals of the enterprise.

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Objectives of Informal Organization

To fulfill psychological and social needs of members.

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Stability of Formal Organization

More stable due to established rules and regulations.

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Stability of Informal Organization

Less stable without proper rules and regulations.

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Size Comparison

Formal organizations are generally larger than informal ones.

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Organization Charts

Visual representation needed to show the structure of a formal organization.

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Communication Types

Formal organizations use written communication; informal organizations use oral communication.

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Flow of Authority

Formal organizations have a vertical authority flow; informal organizations have a horizontal flow.

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Leadership in Organizations

In formal organizations, leaders are typically managers; in informal organizations, leaders are elected by members.

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Relationships in Organizations

Formal organizations foster impersonal relationships due to regulations; informal organizations promote personal relationships.

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Scope of Organizations

Formal organizations have a broad scope defined by rules; informal organizations have a narrow scope.

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Study Notes

Defining Organization

  • An organization is a group of people working together to achieve specific goals.
  • Two main types exist: formal and informal organizations.

Formal Organization

  • Meaning: Defined by clear authority, responsibility, and accountability for each member.
  • Objectives: Set pre-determined goals for the enterprise.
  • Stability: More stable because established with rules and regulations.
  • Need: Generally needed in most organizations for stability.
  • Size: Generally larger than informal organizations.
  • Establishment: Created via rules and regulations, with clearly defined roles.
  • Charts: Uses organization charts to visualize structure.
  • Communication: Typically written or formal communication.
  • Authority Flow: Top-down (vertical) flow from superiors to subordinates with bottom-up responsibility flow.
  • Leader: Usually managers are the leaders.

Informal Organization

  • Meaning: Has unclear authority, responsibility, and accountability; members' roles are less defined.
  • Objectives: Focuses on fulfilling members' social and psychological needs.
  • Stability: Less stable than formal organizations.
  • Need: Not as essential to every organization as formal organizations are. Less crucial because of the potentially fluid nature.
  • Size: Generally smaller than formal organizations.
  • Establishment: Spontaneous and formed without strict rules.
  • Charts: Does not utilize organization charts.
  • Communication: Usually oral or informal communication.
  • Authority Flow: Horizontal, where everyone has relatively equal rights and responsibilities.
  • Leader: Often elected by members.

Organization Relationships (Formal & Informal)

  • Formal Relationships: Impersonal relations within a formal organizational structure through rules.
  • Informal Relationships: Personal and direct relationships within the group.
  • Scope: Formal organizations have a wider scope than informal organizations.
  • Number of Members: Formal organizations usually have more members than informal ones.

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Explore the distinctions between formal and informal organizations. Understand their characteristics, objectives, and how they function. This includes authority, communication, and leadership structures in each type.

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