Question

What is meant by 'formal organisation'? State its any two advantages.

Answer 1

A formal organization is a well defined structure of authority and hierarchy that clearly specifies the boundaries of authority and responsibility in an organization. The rules and policies to be followed are clearly stated.
The following are the advantages of a formal organization:
(i) It is easier to fix responsibility since mutual relationships are clearly defined;
(ii) Unity of command is maintained through an established chain of command.