Republic of the Philippines

COLLEGE OF PUDLIC ADMINISTRATION AND GOVERNANC

Romulo blvd., San Vicente,Tarlac city

GROUP- II

TITLE: The Concept of Formal Organization.

TITLE: Organizational Choices Product versus Function

GROUP MEMBERS :

Reign Guiao Manese

Johny M. Carino

Elliesha David

SECTION:BPA 2-E
1.)The concept of formal organization- is a fundamental aspect of understanding how various entities
wether they are businesses, government agencies, or non-profit organizations are structured and operate.
2.)Social Organization- is a collective of people who work together to attain specified outcomes.
3.)Formal organization- refers to structured and official systems of relationships, roles, and rules within a
group or society.
4.) Informal Organization- refers to the social networks, relationships and interactions that develop within
a formal organization.
Organizational structure plays a crucial role in determining how a company operates, communicates, and
achieves its objectives. One of the fundamental decisions in organizational design is choosing between a
product-based structure and a function-based structure.

1. Product-Based Structure:

Customer Focus: Allows dedicated focus on specific products, catering to unique customer
requirements.
Accountability: Clearly defined product units enable better accountability for performance and
outcomes

Coordination Challenges: May lead to coordination issues between different product units.

Limited Skill Diversification: Employees may become specialized in a narrow field, limiting skill
diversification.

2. Function-Based Structure:
Efficiency: Allows for efficient resource allocation and streamlined processes across the
organization.
Expertise Development: Encourages the development of specialized skills within functional areas.

Communication Hurdles: Inter-departmental communication might suffer, leading to

misunderstandings and delays.
Lack of Ownership: Employees might lack a sense of ownership for specific products, potentially
impacting quality, and innovation.