Reasons, Advantages, And Disadvantages Of Formal Organizational Structure - Phdassistance.com
                     REASONS FOR 
ADVANTAGES  AND 
DISADVANTAGES OF  
FORMAL ORGANIZATIONAL  
STRUCTURE
An Academic presentation by
Dr. Nancy Agens, Head, 
Technical  Operations, 
Phdassistance  Group
www.phdassistance.com  Email: 
[email protected]
TODAY'S 
DOIuStClinUe SSION
In Brief Features of Formal Organization
Introduction Advantages of Formal Organizational Structure 
Formal Organizational Structures  Disadvantages of Formal Organization  
Reasons for Formal Organizational Structure Conclusion
Organizational Structure that Supports Digital  Transformation Future Scopes
In Brief
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.
Introduction
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..
Decision  
Making Task
Formal  
Organizat ional Each individual is attached to various groups or clusters
 Structures within 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.
Organizat ional 
 Structure
Reasons  
for Formal STRUCTURE AS AN 
 EMPIRICAL 
Organizat i OBJECT
onal  
a. Most of the characters or dimensions 
Structure  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..
STRUCTURE AS 3 STRUCTURE 
AN  AS  SYSTEM 
INFORMATION FORM
PROCESSING The organizational structure is used to 
TOOL  determine the arrangement or the 
 Information about organizational structure form  of the system’s subunits 
 informs the employee about what has to  significantly.
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 proper
I nformation Environment to 
make  appropriate decisions.
Contd..
4 STRUCTURE 5 STRUCTURE AS CARRIER 
AS  OF  SOCIAL 
NEGOTIATED PSYCHOLOGICAL
PROCESSES
Decision making of organizations  The organizational structure serves 
often quits from the state of wisdom.  as a stimulus to other 
phenomena.
When ambiguity and complexity of  
organizations are distinctive,  Due to the formal structure of  
participants, problems, solutions, and organizations, its socio-  
 choice opportunities are badly built psychological processes have 
 in a random way.  been transformed.
Contd..
Formal  
Organizat ional 
 Structure
Organizational  
Digital technologies assist organizations to reinvent the  
Structure that  whole process of business and also to establish new ones.
Supports  
Digital  An organizational structure which has been characterized  
Transformat ion 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.
Features  (1) The process of organizing has intentionally created 
of Formal  a formal o rganizational structure.
Organiza (2) The achievement of the goal of organizations is the  purpose of the formal organization structure.
tion (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.
Advantage 1. S ystematic Working: 
Orsgmanoioztaht ifounc htiaosn ignogt  dsuyest etom thaetic f oarnmdal organizational structure.
s  of Formal
Organizat iona 2. A chievement of Organizational Objectives: 
l  Structure 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..
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 interpersonal
relations in the formal organizational structure.
Disadvantage
s  of Formal  1. Delay in Action: Actions may get delayed while
Organization following 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.
Conclusion
Formal structures mean purposely designed organizations
that 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.
Future 
 Researchers better understand the consequences of  formal organizational structures on the apparent  
Scope strategic alignment.
s 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.
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