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What is Formal Organization, Definition and

Characteristics MICHAEL PORTERS
Wed, 07/27/2011 - 12:57 -- Umar Farooq STRATEGIC TOOLS

What is Formal Organization What is SWOT Analysis & Its

The formal organization is basically goal-oriented entity that exist to Importance...
accurate the efforts of individuals and it refers to the structure of jobs and What is PEST Analysis
positions with clearly defined functions, responsibilities and authorities. Definition, Factors...
Michael Porter's Generic
Definition of Formal Organization Strategies
Porter’s Value Chain Analysis
According to Chester Banard “an organization is formal when the activities
Primary &...
are coordinated towards a common objective”. He found that the essence of
formal organization is conscious common purpose and that formal Porter's Five Forces Model
organization comes into being when persons: of...

1. Are able to communicate with each other

2. Are willing to act, and
SWOT ANALYSIS
3. Share a purpose

SWOT
In this way, all business organizations are formal organizations they have a
system of well defined jobs bearing a definite measure of authority, Analysis of
responsibility and accountability. All this is designed to enable the people McDonalds
working within the enterprise to work more effectively for achieving Corporation for 2013
objectives.

Characteristics of Formal Organization

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 SWOT
Analysis of
Apple
Following are the main characteristics of formal organization
Corporation
1. Organization structure stands on division of labor which brings 2013
efficiency in organizations’ operations.
2. Policies and Objectives of organizations are determined
What is SWOT
3. Individual activities are limited
4. Organizations communicate messages through straight chain of
Analysis & Its
command Importance
5. Arbitrary structure of organization For Companies

Also Read:    What is Centralization     Delegation of Authority     

Informal Organization
Study Lecture Notes
Example of Formal Organization
Follow
A main feature of such interrelationships is that they can be shown in
organization charts or manuals as one shown below. Example of formal
organization with the help of an organizational chart of an electrical Co
Follow 585
Formal Organization Chart

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