Formal organisation is the type of organisation which is deliberately designed to facilitate the smooth functioning of the organisation.
Advantages of formal organisation are as under :
1. Stability – Formal organisation is stable because behaviour of employees is within the parameter of specific rules. The behaviour of the employees can be fairly predicted.
2. Fixation of responsibility – There is clearcut role of each member and mutual relationships are clearly defined. Hence, it is easier to fix responsibility.
3. Clear cut role – Formal organisation specifies clearly the rights, duties and liabilities of an employee. Hence, there is no ambiguity in the role that each member has to play. Further, the chances of duplication of efforts are minimum.
4. Unity of command – Formal organisation is based on the principle of scalar chain. Scalar chain provides official lines of command. As a result, there is unity of command which means that an employee receives instructions and orders from one superior only and he is answerable to same superior
