Formal and Informal Organization:

Formal Structure

 Formal structure is primarily concerned with the relationship between authority and
subordinate.
 A typical organization chart illustrates the formal structure at work in a company or part
of a company.
 The hierarchical organization begins at the top with the most senior leader and then
cascades down to the subordinate managers and then subordinate employees below those
managers.
 There are job titles, financial obligations and clear lines of authority for each box on the
organization chart.